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3 Big Things Today, June 7
1. Soybeans, Corn Decline on Trade, Export Sales
Soybeans and corn were again lower overnight on escalating trade wars and weak export sales.
The Trump administration is still planning to impose a 5% import tax on Mexican goods unless there’s proof that the government is doing enough to stem the tide of immigrants into the U.S., Vice President Mike Pence said yesterday.
Talks ended yesterday without an agreement, but more negotiations are scheduled for today.
There’s been little news about talks between the U.S. and China. President Donald Trump said this week he could increase tariffs on another $300 billion worth of Chinese goods.
Chinese President Xi Jinping, meanwhile, has been in Russia on an official state visit. Xi and Russian President Vladimir Putin have reportedly had high-level talks as China cozies up to Russia amid its trade spat with the U.S.
Export sales were weak for both corn and wheat, though soybeans rose week to week.
Soybeans for May delivery lost 5¼¢ to $8.63½ a bushel overnight on the Chicago Board of Trade. Soy meal dropped $2 to $313.90 a short ton, while soy oil declined 0.13¢ to 27.63¢ a pound.
Corn futures for May delivery fell 3¼¢ to $4.17¼ a bushel overnight.
Wheat for May delivery lost 6¼¢ to $5.03¾ a bushel in Chicago, while Kansas City wheat dropped 5¢ to $4.50¼ a bushel.
2. Old-Crop Corn, Wheat Sales Result in Net Reductions as Several Countries Cancel Shipments
Export sales of U.S. corn were reported as a net reduction as several countries canceled purchases, according to the USDA.
Sales came in at a net reduction of 8,800 metric tons in the seven days that ended on May 30, the USDA said in a report.
New Zealand was the big buyer at only 33,200 metric tons, followed by Japan, which bought 24,200 tons. Mexico took 20,500 tons, Guatemala was in for 13,000 tons, and Taiwan purchased 5,500 tons.
The purchases, however, were more than offset by cancelations as Nicaragua and Costa Rica each nixed cargoes of 27,300 tons, an unknown customer canceled a shipment of 24,300 tons, and the Dominican Republic canceled a purchase of 22,000 tons.
For the 2019-2020 marketing year that starts on September 1, sales totaled 23,500 metric tons.
Wheat sales in the last week of the grain’s 2018-2019 marketing year also resulted in a net reduction of 26,000 metric tons, the USDA said. The Congo was the big buyer at 15,500 metric tons, Liberia took 8,800 tons, Mali was in for 5,500 tons, Malaysia took 4,600 tons, and Iraq bought 2,500 tons.
An unknown buyer canceled a shipment for 73,000 tons, and the Philippines and Guatemala each nixed cargoes of 3,000 tons.
For the 2019-2020 season that started on June 1, however, sales totaled 501,900 metric tons as Taiwan purchased 111,000 metric tons, Panama was in for 89,500 tons, unknown customers bought 81,000 tons, Mexico took 68,200 tons, and Colombia was in for 41,300 tons.
Soybean sales, meanwhile, were up 28% week to week to 510,000 metric tons, the government said.
An unknown buyer took 214,000 metric tons, China was in for 72,300 tons, Germany bought 56,800 tons, the Netherlands took 40,000 tons, and China purchased 31,300 tons. Sales for the 2019-2020 year that starts on September 1 totaled 73,700 tons, the USDA said.
3. Thunderstorms Likely Today in Parts of Southern Illinois, Indiana, River Flooding Continues
Heavy rain, lightning, and isolated thunderstorms are expected in parts off southern Illinois and Indiana today, the National Weather Service said in a report early this morning, further delaying planting in the states.
The storms likely will continue into the weekend.
Flood warnings are already in effect along the Missouri River through Missouri and along the Mississippi River on the state’s border with Illinois.
The Mississippi River is at 45.5 feet at Cape Girardeau, Missouri, well above flood stage of 32 feet, according to the NWS. The river is expected to continue rising to 46 feet by Monday morning.
Farther north, storms that will bring locally heavy rain is expected in parts of northern Indiana, southwestern Michigan, and northwest Ohio starting this weekend, the NWS said.