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3 Big Things Today, August 19

Soybeans Lower Overnight on Favorable Weather; Export Sales Again Strong.

1. Soybeans Decline Amid Favorable Midwest Weather

Soybeans tumbled again overnight on technical selling amid favorable weather in the Midwest.

Some rain is in the forecast for eastern parts of the region in the next six to 10 days where it’s needed, while drier weather is expected in central and southern areas where it’s been too wet, according to Donald Keeney, a senior agricultural meteorologist at MDA Information Services.

The Department of Agriculture last week forecast U.S. production at a record 4.1 billion bushels after favorable weather during most of the growing season. Corn production is pegged at 15.2 billion bushels, also the biggest on record.

Still, export sales have been extremely strong the past two weeks, though the USDA reported only a sale of 101,600 metric tons of corn for delivery in the marketing year that starts on September 1, marking only the second day this month that sales weren’t reported for beans.

Soybean futures for November delivery dropped 15¢ to $9.99½ a bushel overnight on the Chicago Board of Trade. Soy meal futures for December delivery fell $5.30 to $325.90 a short ton, and soy oil lost 0.48¢ to 34.13¢ a pound.

Corn futures for December delivery fell 1¼¢ to $3.40¾ a bushel in Chicago.

Wheat futures for September delivery declined 1¾¢ to $4.42½ a bushel, while Kansas City futures lost 2¢ to $4.44¾ a bushel in Chicago.

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2. Soybean, Corn Export Sales Again Strong as Low Prices Draw Buyers

Soybean and corn sales for delivery in the marketing year that starts at the beginning of next month were again strong in the week through August 11, as low prices and a weakened dollar make U.S. supplies attractive.  

Exporters sold 1.6 metric tons of beans for delivery in the 2016-2017 marketing year. Unknown buyers were the biggest customers, purchasing 827,000 tons, followed by China, which took 694,200 tons. The next-biggest buyers were Taiwan, which bought 34,000 tons, and Mexico, which purchased 10,900 tons, according to the USDA.

Sellers also sold 177,900 tons for delivery in the current marketing year that ends on August 31.

Corn sales for delivery in 2016-2017 totaled 1.04 million tons. Not surprisingly, Mexico was the biggest buyer, purchasing 425,200 tons, unknown importers bought 269,300 tons, and Japan took 152,400 tons from U.S. supplies, the USDA said.

Exporters also sold 167,400 tons for delivery by the end of the month.

Export sales have been extremely strong as of late due to a combination of low prices and a weaker U.S. greenback that makes dollar-denominated products including agricultural supplies more attractive. Since the start of August, the USDA has reported a sale of soybeans or corn every day except one.

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3. More Rain on the Way as Flooding Continues in Louisiana

Heavy rains that have led to flooding in many parts of the U.S. are dominating headlines as the weekend approaches.

Locally strong thunderstorms are expected in much of the Midwest and Gulf Coast. In Louisiana, 13 people have been killed and tens of thousands are homeless due to flooding, according to the news reports.

The rain isn’t expected to stop, as the region has a good chance of precipitation for at least the next five days, according to a forecast from the Weather Channel.

Flood warnings have been issued for parts of eastern Wisconsin near La Crosse and in parts of Arkansas near Jonesboro, where heavy rains may lead to flooding, according to the National Weather Service.

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