3 Big Things Today, October 25, 2019
1. Soybeans, Grains Little Changed in Overnight Trading
Soybeans and grains were little changed overnight on a lack of fundamental news, though market-watchers are keeping an eye on the weather and trade talks between the U.S. and China.
Cold weather, along with precipitation, is expected in parts of the Midwest this weekend, which could further delay the harvest or, in some cases, curb crop yields and ultimately production.
Only 46% of the U.S. soybean crop was harvested at the start of the week, well behind the prior five-year average of 64%, the USDA said.
In Iowa, 48% of beans were collected vs.the average of 61% for this time of year. In Illinois, 52% were in the bin vs. the normal 68%.
About 30% of corn was harvested as of Sunday vs. the average of 47%, the USDA said. In Iowa, only 15% was collected vs. the 34% average, and 36% of Illinois corn was in the bin compared with the normal 70% for this time of year.
On the U.S.-China trade front, farmers, traders, and analysts are optimistic about a potential agreement between the world’s two largest economies, as presidents Donald Trump and Xi Jinping are expected to meet in Chile next month.
There are indications that they want to sign a trade agreement that ends the year-and-a-half-long trade dispute between the countries, but details of any deal still have to be worked out, according to officials on both sides.
Soybean futures for November delivery fell ½¢ to $9.32¾ a bushel overnight on the Chicago Board of Trade. Soy meal was rose $1 to $307.50 a short ton, while soybean oil lost 0.14¢ to 31.20¢ a pound.
Corn futures for December delivery rose ½¢ to $3.87¼ a bushel overnight.
Wheat for September delivery rose 1¾¢ to $5.17¾ a bushel, while Kansas City futures gained ¾¢ to $4.20¼ a bushel.
2. Export Sales of Corn Rise While Soybeans, Wheat Decline Week to Week
Export sales of corn rose week to week, while soybeans and wheat both declined, according to the USDA.
Exporters sold 491,500 metric tons of corn in the week that ended on October 17, up 33% from the previous week and 15% from the prior four-week average, the government said in a report.
Mexico was the big buyer at 347,400 metric tons, followed by Colombia at 99,900 tons, and Japan at 89,100 tons. Costa Rica bought 31,600 tons, and Honduras took 16,600 tons, the USDA said. The total would’ve been higher, but an unknown customer canceled purchases of 108,000 tons.
Soybean sales, meanwhile, were reported at 475,200 metric tons, down 70% week to week and 72% from the four-week average.
Pakistan was the top buyer of beans last week at 193,600 tons, the Netherlands purchased 142,200 tons, Mexico was in for 124,500 tons, Thailand took 98,900 tons, and Taiwan bought 81,400 tons.
An unknown country canceled shipments totaling 583,900 metric tons, the agency said.
Wheat sales also declined, falling to 262,400 metric tons, the USDA said. That’s down 34% from the week earlier and 31% from the four-week average.
Mexico was the top buyer at 91,100 metric tons, followed by Japan at 38,600 tons, and Brazil at 32,200 tons. Malaysia bought 26,000 tons of U.S. wheat, and the Dominican Republic purchased 22,200 tons, the government said in its report.
An unknown buyer canceled shipments of 36,100 metric tons, the USDA said.
3. Snow May Fall in Nebraska, Iowa While Freezing Weather Expected in Northern Illinois, Indiana
Winter weather may make its way into parts of eastern Nebraska and western Iowa this weekend, as snow may fall in the area, according to the National Weather Service.
“A mix of light rain and light snow will try to spread into parts of northeast Nebraska Saturday night into Sunday morning,” the NWS said in a report early this morning.
Some snow also is possible early next week for counties in eastern Nebraska and southwestern Iowa.
In parts of northern Illinois and Indiana, temperatures will drop below freezing tonight, the agency said.
Widespread frost and freezing weather are expected, which will “effectively end the growing season across northern Illinois and northwest Indiana,” the NWS said.
Rainfall is expected in the area Saturday with some showers heavy, the agency said. Runoff from the precipitation may lead to further flooding along area streams and rivers.