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3 Big Things Today, January 31

Soybeans, Corn Rise Slightly Overnight; South American Weather Also Weighing on Prices.

1. Soybeans, Corn Slightly Higher Overnight on Rebound From Lows

Soybeans and corn were modestly higher overnight as investors seeking bargains cautiously purchase contracts.

Prices have been falling recently on concerns about improving South American weather and worries that trade policies from the Trump administration – including backing out of the Trans Pacific Partnership and revamping the North American Free Trade Agreement – will curb demand for U.S. products.

Soybean futures fell yesterday to the lowest in about three weeks. Corn declined to the lowest level in about two weeks. The low prices have drawn bargain hunters looking for a low entry point into the markets, analysts said.

Soybean futures rose 2¾¢ to $10.25½ a bushel overnight on the Chicago Board of Trade. Soy meal futures rose 80¢ to $335.20 a short ton, and soy oil gained 0.18¢ to 33.79¢ a pound.

Corn futures added ¾¢ to $3.58½ a bushel in Chicago.

Wheat for March delivery rose ¾¢ to $4.14¾ a bushel in Chicago, while Kansas City futures declined ½¢ to $4.25¼ a bushel.

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2. South American Weather Outlook Overshadowed by Political Talk Weighs on Prices

With all of the recent talk about political factors weighing on prices, it’s easy to ignore outside factors including South American weather that’s also been a drag on prices.

Rainfall in Argentina, particularly in areas where there’s been a lack of precipitation this growing season, is expected to aid crops later this week. Moderate to heavy rain is expected from Thursday through Saturday in northern corn and bean regions, while showers today and tomorrow will favor southern areas, according to Commodity Weather Group.

“Most Argentina corn and soy areas average 1 to 3 inches the rest of the week to aid yield potential,” CWG said in a report this morning. “A drier six- to 10-day forecast keeps wet spots localized.”

Temperatures also are expected to moderate in some areas where they’ve been extremely higher, and the 16- to 30-day forecast is calling for near to slightly above normal rainfall, the forecaster said.

In Brazil, patchy showers in the center-west and center-south of the country yesterday and widespread precipitation in the next two weeks are expected to boost corn and bean prospects, according to CWG.

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3. Winter Weather Advisory Issued for Michigan, Northern Ohio

A winter weather advisory has been issued for much of the southern half of Michigan, according to the National Weather Service.

Up to 3 inches of snow is expected to accumulate this morning with some areas receiving slightly more, the NWS said in a report on Tuesday morning. The storm is expected to make travel difficult.

The storm stretches east into parts of northern Ohio and western Pennsylvania where up to 4 inches of snow is expected to fall, the agency said.

In parts of the Southern Plains, patchy freezing fog and drizzle are expected to develop late tonight for areas in east-central Colorado and western Kansas, the NWS said.

“Light snow or light freezing drizzle is possible late Wednesday night and Thursday morning,” the forecaster said. “If precipitation occurs, little to no accumulation is expected. Some locations could see a light glaze of ice on area roads or elevated surfaces.”

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