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3 Big Things Today, May 5

Wheat Futures Higher on Potential Damage; Weekly Export Sales For Corn, Beans Decline.

1. Wheat Futures Higher Overnight on Potential Damage to U.S. Crop

Wheat futures were higher in overnight trading as agronomists get closer to finding out how much damage a snowstorm last weekend did to the Kansas wheat crop.

As much as 2 feet of snow in some areas buried heading wheat plants, in some cases causing them to snap or bend, while extremely cold temperatures may have hurt plants elsewhere.

The Kansas Wheat Tour, which wrapped up yesterday, calculated yields of about 46 bushels an acre, but participants at the end of the three-day event hosted by the Wheat Quality Council pegged yields closer to 40 bushels an acre to account for the damage.

It’s likely it’ll be another week to 10 days until agronomists can determine how much damage was done, analysts said.

Wheat futures for July delivery gained 1¾ cents to $4.39½ a bushel overnight on the Chicago Board of Trade. Kansas City wheat added 3¢ to $4.47½ per bushel overnight.

Soybean futures for July delivery fell ¾¢ to $9.73½ a bushel in Chicago. Soy meal lost $1.30 to $317.30, and soy oil gained 0.19¢ to 32.69¢ a pound.

Corn futures for July delivery added 2¼¢ to $3.68¾ a bushel.

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2. Corn, Soybean Sales to Overseas Buyers Decline Week-Over-Week

Export sales of corn and soybeans fell in the week that ended April 27, according to the U.S. Department of Agriculture.

Corn exporters sold 771,600 metric tons of the grain last week, down 22% from the previous week and 15% from the prior four-week average, the USDA said in a report.

Japan was the biggest buyer, taking 184,800 metric tons, followed by Mexico at 153,100 tons. South Korea purchased 123,600 tons; Saudi Arabia bought 73,600 tons; and Taiwan took 73,400 tons, according to the government.

Soybean sales last week totaled 318,500 metric tons, down 57% week-over-week and 25% from the prior average.

The Netherlands bought 144,800 tons; Indonesia took 88,200 tons; and China was in for 69,600 tons. Bangladesh purchased 55,000 tons and the Philippines took 27,100 tons, according to the USDA.

Wheat sales for the 2016-2017 marketing year that ends May 31 totaled 258,400 tons, up considerably from last week’s dismal sales but down 30% from the prior four-week average.

The Philippines bought 66,900 tons from U.S. supplies; Thailand purchased 52,000 tons; Nigeria took 32,600 tons; Malaysia bought 30,700 tons; and Mexico was in for 29,800 tons.

For 2017-2018, sales came in at 563,400 tons, including 157,000 tons to unknown buyers; 90,000 tons to Algeria; 76,400 to South Korea; and 63,000 tons to China, according to the USDA.

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3. Flooding From Oklahoma to Michigan May Worsen as Rain Continues

Flood warnings and flash flood watches are in effect for a large patch of land stretching from Arkansas to Michigan today as more rain is forecast in much of the affected area.

Another 2 to 4 inches of rain is expected to fall in already-flooded areas of central Indiana, according to the National Weather Service.  

Rain is also expected in much of southern Illinois, parts of southeastern Michigan, and perhaps Ohio on Friday, the NWS said in early reports.

In Missouri, rainfall that’s heavier than forecast may cause rivers to rise more than originally predicted.

The agency has issued a flash flood warning near Mayes County in Oklahoma where floodgates have been opened on the Hudson Dam. No more rain is expected in the county, which should help conditions improve, though the dam releases were causing flash flooding downstream, the NWS said.

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