You are here

3 Big Things Today, July 29

Soybeans Drop on Poor Export Sales; Shippers Saw More Returned Than Sold Last Week.

1. Soybeans Drop on Lackluster Export Sales Report, Favorable Weather

Soybean futures declined overnight on a lackluster report that showed buyers canceled more orders than they made last week.

Exporters reported a net reduction in sales of 1,400 metric tons due to a large cancelation of sales from an unknown buyer. The miss was well below the prior week and four-week averages.

Prices also declined amid ample rainfall in much of the Corn Belt. Storms rolled through southern Illinois and Indiana and into Ohio yesterday, boosting prospects for crops that already looked good. Showers in parts of Michigan also improved soil moisture for areas of the state that had been extremely dry, according to the National Weather Service.

Soybean futures for November delivery declined 8¢ to $9.70 a bushel on the Chicago Board of Trade. Soy meal futures for December delivery fell $3 to $337.80 a short ton, and soy oil lost 0.09¢ to 29.89¢ a pound.

Corn futures dropped 2¼¢ to $3.36½ a bushel.

Wheat futures for September delivery fell 4¢ to $4.06¼ a bushel in Chicago, while Kansas City wheat lost 3¼¢ to $4.05¾ a bushel.

**

2. Soybean Exporters Take Back More Than They Sell on Large Cancelation

It’s not every week you see a negative export sales number, but it does happen occasionally, especially as we near the end of the marketing year.

Granted, the marketing year for soybeans doesn’t end for another month, but U.S. exporters got some bad news last week when someone – marked on the Department of Agriculture’s sales sheet as an unknown buyer – canceled an order for 475,000 metric tons.

If not for the cancelation, sales wouldn’t have been too bad. China reportedly bought 226,300 tons, the Netherlands purchased 77,000 tons, Vietnam bought 70,600 tons, Tunisia took 30,000 tons, and Indonesia purchased 20,500 tons, according to the USDA.

New-crop bean sales were reported at 678,200 tons with the bulk (564,500 tons) going to unknown buyers. China bought 60,000 tons, and Mexico purchased 21,800 tons, the government said.

Corn sales were decent, but not great, coming in at 438,800 for the week. That’s up 27% from the prior week but down 5% from the prior four-week average.

Japan was the big buyer, taking 96,200 tons, followed by South Korea at 75,900 tons, Mexico at 73,300 tons, and Algeria at 61,500 tons. As with beans, however, an unknown buyer canceled a large order, this one for 210,500 tons, bringing down the total, the USDA said.

Sales in the 2016-2017 marketing year, on the other hand, were strong at 1.38 million tons, an 11% increase from the prior week and a 5% gain from the prior four-week average. The primary destinations were Mexico at 272,600 tons, South Korea at 272,200 tons, Japan at 231,000 tons, and Saudi Arabia at 122,000 tons.

Get today’s news sent to your in-box by signing up for Successful Farming newsletters.

**

3. More Rain Set to Fall in Midwest into Weekend

More rain is on tap for the weekend for much of the Midwest, as storms again roll through the region, according to the National Weather Service.

Rainfall is extremely likely today through Sunday in much of eastern Iowa and Illinois east into Indiana and Ohio, the forecaster said. Some of the storms could turn severe with heavy winds and light hail being the primary concerns, according to the NWS.

The precipitation in a stretch of land from southern Indiana into central Ohio may lead to flooding, the agency said.

“Scattered thunderstorms are expected this afternoon into early evening,” the NWS said in a report sent Friday morning. “The storms will be capable of producing heavy rainfall and localized flooding.”

Get involved in the discussion in Marketing Talk.

 

Read more about

Tip of the Day

Farmer-Built Bucket Opener Saves Hands

bucket opener I built my own bucket-opening tool from a 12-inch-long piece of ½-inch rebar, 1½-inch length of ¾-inch angle iron bent to a V-shape, and a... read more

Talk in Marketing