3 Big Things Today, Dec. 11
Wheat Futures Fall in Overnight Trading, Corn, Beans Little Changed
Wheat futures declined overnight on signs of slack demand for U.S. supplies.
U.S. exporters sold 225,100 metric tons of the grain in the week that ended on Dec. 3, down 43 percent from the previous seven days and 45 percent from the prior four-week average.
Accumulated exports and commitments from overseas buyers to purchase U.S. wheat so far this marketing year are well behind last year’s pace.
Wheat futures on the Chicago Board of Trade fell 2 cents to $4.93 ½ a bushel in overnight trading. Kansas City wheat futures declined 2 cents to $4.87 ¾ a bushel.
Corn futures for March delivery fell ¾ cent to $3.78 ½ a bushel on the CBOT.
Soybean futures for January delivery rose 3 cents to $8.81 ¼ a bushel in Chicago. Soymeal for January delivery gained $2 to $275.80 per short ton, while soyoil declined 0.04 cent to 31.35 cents a pound.
Export Sales Strong For Corn, Beans
While export sales figures were weak for wheat, they were quite positive for corn and soybeans.
Exporters sold 1.095 million metric tons of corn to overseas buyers last week, a big increase from the prior week and up 11 percent from the four-week average. Unknown buyers bought 380,200 tons, while Mexico and Colombia were big buyers at 303,300 tons and 130,100 tons, respectively. South Korea, Peru and Honduras also were buyers.
Soybean shippers sold 1.453 million tons last week, up 66 percent from the previous week and 13 percent from the prior four-week average. China was the biggest buyer, of course, alone taking 1.34 million tons of the total. The Netherlands, Turkey, Romania and the United Kingdom were all buyers.
It’s not just the amount that was sold that’s a good sign – it’s the large mix of buyers of both corn and soybeans that makes this week’s export sales report special. Mexico is always a buyer of corn and China is always a buyer of soybeans, but seeing countries like Peru and Honduras for corn and the Netherlands and Romania in for beans is positive.
As Larry Glenn from Frontier Ag in Quinter, Kansas, always says, `it’s good to have a lot of different buyers in there.’
Now, let’s hope they keep buying.
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Wet Snow in Southern Plains May Benefit Winter Wheat
Snow is likely to fall this weekend in parts of southwestern Kansas and the Oklahoma and Texas panhandles, which could benefit wheat that’s overwintering, or at least trying to overwinter in these unusually warm temperatures. (www.agriculture.com/weather)
Several inches of accumulation is possible in some areas, but with temperatures on the high side, the snow will be heavy and wet, according to the National Weather Service.
The best chance for accumulation is west of Highway 283 west to the Colorado state line. The storm will make roads slick and travel isn’t recommended, the NWS said. (www.weather.gov)
Freezing rain is expected in a large chunk of North Dakota, which could also make travel difficult, and some flooding is possible in parts of Arkansas, eastern Oklahoma and east Texas.
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