3 Big Things Today, November 22
1. Soybeans, Corn Mixed Overnight as Investors Weigh Demand, Output
Corn and soybeans were little changed in overnight trading as investors weigh strong demand for U.S. supplies against what’s expected to be record harvests for both crops.
Overseas buyers have been snapping up U.S. corn, beans, and wheat recently amid low prices. Since the start of the marketing year on September 1, exporters have sold 90% more corn than they did in the same period a year earlier, according to the Department of Agriculture.
Soybean sales are up 25%, and wheat sales since the start of its marketing year on June 1 are up 29% year-over-year, USDA data show.
Still, growers are finishing up collection of what’s expected to be record harvests and yield for both corn and beans. U.S. corn production is pegged at 15.2 billion bushels on yields of 175.3 bushels an acre, the USDA said. Soybean output is projected at 4.36 billion bushels on yields of 52.5 bushels an acre.
Soybeans for January delivery rose a penny to $10.21¼ a bushel on the Chicago Board of Trade. Soy meal futures for December delivery gained $1.80 to $321.50 a short ton, and soy oil fell 0.15¢ to 34.49¢ a pound.
Corn futures for December delivery fell 1¼ cents to $3.48½ a bushel in Chicago.
Wheat futures for December delivery fell 1¼¢ to $4.25¾ a bushel in Chicago, while Kansas City futures rose ¼¢ to $4.32¼ a bushel.
2. U.S. to Leave Trans-Pacific Partnership on First Day of Trump Presidency
President-elect Donald Trump outlined actions he’ll take in the first 100 days of office on Monday, and it’s not good news for the Trans-Pacific Partnership.
The TPP, as it’s called, is an agreement between 12 countries – the U.S., Brunei, Chile, New Zealand, Australia, Canada, Japan, Malaysia, Mexico, Peru, and Vietnam – to lower trade barriers including tariffs to trade between the countries. It was agreed upon in 2015 but hasn’t yet been ratified by individual countries.
Trump said the U.S. would leave the TPP on his first day in office. He’s been against the trade agreement since he first announced his run for president and said on Monday that the U.S. would negotiate “fair, bilateral trade deals,” though he didn’t outline any specifics.
The TPP has been supported by agriculture groups as a whole. In May, the U.S. International Trade Commission released a report saying it would increase agricultural exports by $7.2 billion. Meat exports would rise by $1.3 billion, the ITC said.
Corn exports would dip, but that would be more than offset by increased domestic feed demand, the National Corn Growers Association said, at the time calling the TPP a “win for agriculture.”
The American Soybean Association on November 9 urged members of Congress to pass the TPP to allow the U.S. soybean industry to “better participate in the global economy,” calling the agreement “vital to farmers across the country.”
US Wheat, the National Association of Wheat Growers, and Kansas Wheat all supported the TPP.
“NAWG and USW support rapid approval of TPP because it will be beneficial to U.S. wheat producers and improve their competitiveness in the Asia-Pacific region,” the groups said in a joint statement when the TPP was passed. “We also support expansion of the TPP to other wheat importing countries in the region as a top priority for” the U.S.
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3. Storm to Drop Another 5 Inches of Snow on Upper Midwest
More snow is expected today in the upper Midwest as a storm that’s already dropped several inches in the region is set to strike again.
“Mixed precipitation will move from western Minnesota to east-central Minnesota this morning, and this afternoon across central Wisconsin,” the National Weather Service said in a report on Tuesday morning.
Snow accumulations from 2 inches to 5 inches are likely across much of the area through Wednesday, the NWS said. Southern Minnesota likely will bear the brunt of the mixed precipitation.
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