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3 Big Things Today, September 13

Soybeans, Corn Higher Overnight; Export Sales Impressive, Most Carryover From 2018-2019.

1. Soybeans, Grains Rise After Bullish WASDE Report

Soybeans and grains were higher in overnight trading after a mostly bullish World Agricultural Supply and Demand Estimates (WASDE) Report.

Bean production was pegged by the USDA at 3.633 billion bushels, down from the 3.68 billion forecast in August. The agency’s yield projection was lowered to 47.9 bushels an acre from 48.5 bushels.

Analysts polled by Reuters had said they expected bean output at 3.577 billion bushels on yield of 47.2 bushels an acre.

Corn output was seen at 13.799 billion bushels, down from the previous month’s outlook for 13.901 billion, the USDA said. Its yield outlook was lowered to 168.2 bushels an acre from 169.5 bushels.

Analysts had expected production of 13.672 billion bushels on yield of 167.2 bushels an acre.

Soybean futures for November delivery rose 2¾¢ to $8.98¼ a bushel overnight on the Chicago Board of Trade. Soy meal added 50¢ to $301.80 a short ton, while soybean oil gained 0.07¢ to 29.23¢ a pound.

Corn futures for December delivery rose 2¢ to $3.69¼ a bushel.

Wheat for September delivery gained 5¾¢ to $4.89½ a bushel, while Kansas City futures added 4¾¢ to $4.08¼ a bushel.

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2. Export Sales of Corn, Beans Kick Off 2019-2020 Strong, Most Carryover From Prior Year

Export sales of corn and soybeans in the first five days of the 2019-2020 marketing year were impressive, but much of the totals were carryovers from the previous year.

Corn sales from the start of the marketing year on September 1 through September 5 totaled 498,100 metric tons, according to the USDA.

Mexico was the big buyer at 193,800 metric tons. Japan followed at 158,100 tons, Colombia bought 96,200 tons, Nicaragua purchased 58,000 tons, and Costa Rica took 41,200 tons, the USDA said in a report.

About 734,400 metric tons of sales were carried over from the 2018-2019 marketing year that ended on August 31, the agency said.

Shipments of corn for the marketing year ended up at about 49.2 million metric tons, down 14% from the prior year.

Soybean sales kicked off the new year at 1.17 million metric tons, the USDA said.

Mexico also was the biggest buyer of beans at 644,300 metric tons. An unknown buyer was next on the list at 150,000 tons, Thailand was in for 84,900 tons, South Korea took 58,200 tons, and the Netherlands purchased 56,400 tons.

About 1.93 million tons were carried over from the previous marketing year, the agency said.

Total exports of soybeans in the 2018-2019 marketing year were reported at 46.8 million metric tons, down about 17% year over year.

Wheat sales for delivery in the marketing year that started on June 1 were reported at 610,900 metric tons, almost double the previous week and up 20% from the prior four-week average, the USDA said in its report.

The Philippines was the big buyer at 109,000 metric tons, Mexico purchased 91,900 tons, Indonesia was in for 63,700 tons, Nigeria took 54,700 tons, and South Korea bought 53,000 tons, according to the government.

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3. Several Counties in Nebraska Flooded, Flash Flood Warning Issued in Northern Illinois

Flood warnings are in effect for much of northern Nebraska, southeastern South Dakota, and southwestern Minnesota this morning, according to the National Weather Service.

Several roads, bridges, and fields were washed out in north-central Nebraska after two days of heavy rains that dumped 8 inches of water on the area. Drivers were asked to stay off roads amid the devastation.

“Rivers and streams (in northern Nebraska) will continue to remain high with flooding impacts for lowlands and areas adjacent to the rivers,” the NWS said in a report early this morning.  

The good news for the area is that no hazardous weather is expected through all of next week, the agency said, which should give the region some time to dry out.

Some counties in northern Illinois are in a flash flood warning with adjacent counties in Wisconsin facing flood warnings this morning.

Several roads remain closed in the area as rain amounts of up to about 3 inches have already fallen in the area. No more rain is expected this morning, the NWS said.

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