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3 Big Things Today, November 5, 2019

Soybeans Little Changed in Overnight Trading; Export Inspections Decline Week-to-Week

1. Soybeans Little Changed Overnight, Corn Turns Slightly Higher

Soybeans were little changed in overnight trading as investors weigh optimism about a trade deal with China against better harvest weather.

Corn and wheat were slightly higher.

The U.S. and China are contemplating removing some of the tariffs they’ve imposed during the ongoing trade war that’s already lasted a year and a half, according to The Wall Street Journal, citing people familiar with the talks.

The countries – the world’s two largest economies – have agreed to a “partial” trade deal, under which the U.S. will eliminate or ease tariffs on some Chinese items and China will, among other things, increase imports of agricultural products.

President Donald Trump and President Xi Jinping have been in contact and are reportedly working out a mutually agreed-upon sight where a trade deal may be signed. The Financial Times has reported that the U.S. may end tariffs on $111 billion worth of Chinese goods.

The weather in the U.S., meanwhile, has been more favorable in the past few days, which allowed producers to accelerate the harvest.

About 75% of the soybean crop was in the bin as of Sunday, according to the USDA. That’s up from 62% a week earlier, but still trails the prior five-year average of 87%.

Some 52% of the U.S. corn crop was harvested at the start of the week, up from 41% seven days earlier but still trailing the 75% average for this time of year, the USDA said.

Soybean futures for November delivery fell ½¢ to $9.37½ a bushel overnight on the Chicago Board of Trade. Soy meal rose 50¢ to $302.90 a short ton, while soybean oil declined 0.20¢ to 31.67¢ a pound.

Corn futures for December delivery rose 1¼¢ to $3.84½ a bushel.

Wheat for September delivery gained 3¢ to $5.12¾ a bushel, while Kansas City futures added 3¾¢ to $4.26¾ a bushel.

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2. Grain, Bean Inspections For Overseas Delivery Decline Week to Week

Inspections of grains and soybeans for export delivery all declined in the seven days that ended on October 31, according to the USDA.

Corn inspections last week totaled 275,575 metric tons, down from 391,231 tons the previous week and not even close to the 1.28 million tons assessed during the same week a year earlier, the agency said in a report.

Examinations of soybeans for offshore delivery were reported at a respectable 1.48 million metric tons, but that’s still down from 1.58 million tons the previous week.

The total was up from the 1.25 million tons inspected at the same time in 2018.

Wheat assessments declined week to week to 293,360 metric tons from 558,015 tons, the USDA said. That’s down from the 340,564 tons inspected a year earlier.

Since the start of the marketing year on September 1, the government has inspected 3.75 million metric tons of wheat for overseas delivery, down from the 9.98 million tons assessed during the same time frame a year earlier, the USDA said.

Soybean inspections since the start of September stand at 9.55 million metric tons, ahead of the 8.62 million tons at the same point last year.

Since the start of the grain’s marketing year on June 1, wheat inspections totaled 10.9 million metric tons, up from the 8.96 tons inspected during the same period in 2018, the agency said.  

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3. Winter Weather Advisory Issued in Southern Wisconsin, Heavy Rain Forecast in Oklahoma

A winter weather advisory is in effect for all of southern and central Wisconsin this morning as slushy snow is expected, according to the National Weather Service.

As much as 4 inches of snow are expected overnight in the region, which likely will cause roadways to become slick, the NWS said in a report early this morning.

“Snow will spread east through the area overnight tonight and linger into Wednesday morning,” the agency said. “The wet, slushy snow will be heaviest during the Wednesday morning commute. The snow will transition to a rain and snow mix or all rain by Wednesday afternoon, as temperatures warm.”

Farther south in Oklahoma, heavy rain is expected starting tomorrow.

Thunderstorms will produce the rain and will be strongest Wednesday afternoon, the NWS said in its report.

“Localized areas of heavy rain are possible Wednesday night and Thursday,” the agency said. “The strongest storms could produce some small hail Wednesday afternoon into the night time hours.”

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