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3 Big Things Today, November 8, 2019
1. Corn, Soybeans Little Changed in Overnight Trading
Corn and soybeans were little changed in overnight trading, as the harvest rolls on and investors await news on trade negotiations between the U.S. and China.
The weather has been dry in much of the Midwest the past few days, which likely allowed producers to accelerate the harvest.
At the start of the week, only 52% of the U.S. corn crop was collected vs. the normal 75% for this time of the year, according to the USDA.
Only 75% of soybeans were in the bin as of Sunday, behind the prior five-year average of 85%, the USDA said in a report earlier this week.
The agency will release its Weekly Crop Progress Report on Monday.
A potential trade deal between the U.S. and China got a boost this week when Chinese state media indicated that the countries – the world’s largest economies – would drop some tariffs implemented during the 18-month trade war.
Some market-watchers are skeptical that will happen, however, as reports this week indicated any signing by President Donald Trump and President Xi Jinping would be delayed until December as they figure out a suitable locale to sign the agreement.
Gao Feng, a spokesman for the Chinese Commerce Ministry, told reporters Thursday that negotiators has “serious, constructive discussions” and would remove additional tariffs in phases simultaneously.
Corn futures for December delivery fell ¾¢ to $3.74½ a bushel overnight on the Chicago Board of Trade.
Wheat for September delivery lost 2¾¢ to $5.09¾ a bushel, while Kansas City futures dropped a penny to $4.23¾ a bushel.
Soybean futures for November delivery fell 1¢ to $9.35½ a bushel overnight. Soy meal lost $1 to $304.60 a short ton, while soybean oil rose 0.19¢ to 31.62¢ a pound.
2. Export Sales of Soybeans Jump Week to Week; Corn, Wheat Sales Decline
Sales of soybeans for overseas delivery jumped week to week, while corn and wheat sales both declined, according to the USDA.
Soybean sales in the seven days through October 31 totaled 1.81 million metric tons, up 92% from the previous week and 41% from the prior four-week average, the agency said in a report.
China stepped up as the biggest buyer, taking 956,300 metric tons, followed by the Netherlands at 284,100 tons. Mexico purchased 106,600 tons, Vietnam was in for 85,000 tons, and Japan bought 80,600 tons.
An unknown customer canceled shipments for 157,200 metric tons, the USDA said.
Sales were pegged by analysts from 600,000 to 1.2 million metric tons, according to researcher Allendale.
Corn sales, meanwhile, were reported at 487,900 metric tons, down 11% from the previous week, but up 15% from the average.
An unknown customer purchased 227,700 metric tons, Mexico bought 186,900 tons, the Dominican Republic purchased 15,500 tons, and Canada was in for 11,700 tons.
Analysts had expected corn sales from 300,000 to 600,000 tons.
Wheat sales for delivery in the grain’s marketing year that started on June 1 came in at 360,600 metric tons last week, down 27% from the previous seven-day period and 14% from the average, the USDA said in its report.
The Philippines was at the top of the list at 64,000 metric tons, Thailand bought 45,000 tons, an unknown buyer took 40,200 tons, Mexico purchased 39,900 tons. and Taiwan was in for 36,800 tons, the U.S. government said.
Wheat sales were forecast from 350,000 to 600,000 metric tons.
3. Snow Showers Expected in Parts of Minnesota, Wisconsin, Mostly Dry Elsewhere
Snow showers are forecast for parts of southern Minnesota and southern Wisconsin today, though only a couple inches of accumulation are expected, according to the National Weather Service.
The storm will be fast moving, and accumulations in parts of Minnesota will total up to an inch. Overnight up to 2 inches are expected from International Falls, Minnesota, to Mercer, Wisconsin, the NWS said in a report early this morning.
More snowfall is expected starting tomorrow in central Minnesota and northwest Wisconsin, the agency said in its report.
Much of the Midwest looks mostly dry today and tomorrow, which should help farmers harvest crops that are still in the ground.