3 Big Things Today, October 22, 2019
1. Grains, Beans Higher Overnight on Weather, China
Grains and soybeans were again higher in overnight trading amid ongoing adverse weather and optimism about a trade deal with China.
Rainy weather in parts of the Northern Plains is likely this evening, which could turn to snow overnight. That would further delay the harvest that’s already well behind the normal pace.
Only 30% of the U.S. corn crop was out of the ground as of Sunday, behind the prior five-year average of 47%, the USDA said in a report. In North Dakota, only 4% of the crop was harvested compared with the average of 24%, and in South Dakota 9% was collected vs. the 29% average.
About 46% of U.S. soybeans were harvested as of Sunday vs. the average of 64% for this time of year, the agency said. Twenty percent of the North Dakota crop was out of the ground vs. the 81% average, and 33% of South Dakota soybeans were harvested vs. the normal 76% for this time of year.
More wet weather will only further delay the harvest and reduce crop sizes.
On the China-trade front, Commerce Secretary Wilbur Ross said the U.S. wants to get the details of any agreement with China right before an expected signing by presidents Donald Trump and Xi Jinping next month in Chile.
Corn futures for December delivery rose 2¾¢ to $3.90 a bushel overnight on the Chicago Board of Trade.
Wheat for September delivery added 5¾¢ to $5.29¼ a bushel, while Kansas City futures gained 5¾¢ to $4.31¼ a bushel.
Soybean futures for November delivery rose 9½¢ to $9.42¾ a bushel overnight. Soy meal gained $2.60 to $310.30 a short ton, while soybean oil was up 0.25¢ to 30.73¢ a pound.
2. Soybean, Corn Inspections Jump Week to Week; Corn, Wheat Assessments Also Increase
Inspections of soybeans and corn for overseas delivery jumped week to week, while wheat assessments also improved.
Soybean inspections rose to 1.3 million metric tons in the seven days that ended on October 17, up from 955,150 tons the previous week, the USDA said in a report. That’s also up from the 1.22 million tons during the same week in 2018.
Corn assessments also rose, increasing to 531,744 metric tons from 480,647 tons the previous week, the agency said. Still, that’s about half the 1.04 million tons inspected during the same period a year earlier.
Wheat inspections improved to 565,099 metric tons from 497,468 a week earlier and 386,961 tons at this time last year, the USDA said in its report.
Since the start of the marketing year on September 1, soybean inspections now stand at 6.46 million metric tons. That’s up from 6.02 million tons during the same time frame last year.
Corn inspections since the start of September, however, are well behind the year-ago pace. The government has inspected only 3.04 million metric tons vs. 7.96 million tons at this point in 2018, the USDA said.
Since the start of the grain’s marketing year on June 1, wheat inspections are now at 10.1 million metric tons, up from 8.22 million tons at this time last year, the agency said.
3. Rain Forecast in South Dakota; Wind Gusts of Up To 50 mph Expected in Iowa
Rainfall is expected tonight in parts of central and northern South Dakota, which could turn to snow overnight and put down a layer across the region, according to the National Weather Service.
The rain is expected to end by midday tomorrow, the NWS said in a report early this morning.
Strong winds, meanwhile, are expected in several states including the entirety of Iowa, almost all of Minnesota, and the eastern edges of North Dakota, South Dakota, and Nebraska.
Much of southern Wisconsin and several counties in northern Illinois also may face strong winds.
In north-central Iowa and south-central Minnesota, gusts of up to 50 mph are expected along with sustained winds from 30 to 35 mph. The high-wind warning in the area is in effect until 10 a.m., and a wind advisory is in effect until 4 p.m., the NWS said.
Wind gusts in northern Illinois are now seen in excess of 45 mph, the agency said.