Content ID

177277

3 Big Things Today, October 21

Beans, Corn Higher in Overnight Trading; Export Sales Strong Week-to-Week

1. Soybeans, Corn Futures Rise on Strong Export Sales

Soybean and corn futures were higher in overnight trading as export sales surged last week.

Sales of soybeans in the week that ended on October 13 were up 42% from the prior week, the U.S. Department of Agriculture said in a report. Corn sales rose 17% week-over-week.

Exporters reported sales this week of 192,000 metric tons of soybeans to unknown buyers for delivery in the current marketing year that started September 1, the USDA said yesterday. Exporters also sold 114,000 tons of wheat, also to unknown buyers, including 41,000 tons of soft-white wheat and 73,000 tons of hard-red spring wheat for delivery in the 12 months that started June 1.

On Wednesday the USDA reported sales of 185,000 tons of beans, and on Tuesday the department said China bought 706,500 tons from U.S. inventories.

Soybeans for November delivery rose 2½ cents to $9.78 a bushel on the Chicago Board of Trade. Soy meal futures for December delivery added $1.30 to $305.90 a short ton, and soy oil fell 0.09¢ to 34.96¢ a pound.

Corn futures for December delivery gained 1¢ to $3.52 a bushel in Chicago.

Wheat futures for December delivery rose ½¢ to $4.17½ a bushel in Chicago, while Kansas City futures added 1¾¢ to $4.24¾ a bushel. 

**

2. Export Sales Jump Spurred by Lower Prices as Buyers Ignore Strong Dollar

Low prices for U.S. corn and beans are certainly drawing overseas importers as export sales increased week-to-week, and not even the dollar at a seven-month high can slow down buyers.

Corn sales in the week through October 13 totaled 1.02 million metric tons, up from the prior week, as unknown destinations bought 226,000 metric tons, Colombia purchased 197,1000 tons, Peru took 114,000 tons, Saudi Arabia bought 74,900 tons, and Vietnam took 74,500 tons, according to the USDA.

Sales of U.S. soybeans totaled 2 million tons, well above both the prior week average and the four-week average. China was the biggest buyer, followed by the Netherlands, Spain, Mexico, and Japan, the government said.  

Actual shipments of soybeans totaled 2.67 million tons, a marketing year high, and a 71% jump from the prior week, according to the USDA. China was the biggest importer, taking in more than 2.1 million tons.

Wheat sales totaled 513,800 tons last week, up 5% from the previous week and 3% from the four-week average. Mexico was the biggest purchaser at 98,900 tons, Japan bought 80,400 tons, South Korea purchased 80,000 tons, Algeria took 61,700 tons, the Philippines bought 51,000 tons, and Taiwan bought 49,200 tons.

Sales have continued to be strong due to extremely low prices for corn, beans, and wheat. The dollar reached the highest since March this week, but that doesn’t seem to have curbed interest in U.S. supplies.

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

**

3. Weather Turns Colder as Frost Warnings Abound

Warm temperatures early this week have given way to cold weather as frost warnings have been issued in several counties in Iowa, Missouri, Illinois, and Wisconsin.

Frost was expected to form overnight and stick around until the early morning in a large chunk of land encompassing parts of the four states, the National Weather Service said in a report on Friday. Temperatures overnight fell into the low-30s in the area, according to the NWS.

The cool weather will extend into the eastern U.S., which also saw some unusually warm temperatures earlier this week.

“The recent summer-like temperatures in the eastern U.S. will come to an abrupt end on Friday as a strong cold front sweeps across the region,” the NWS said. “Heavy rain and gusty winds will accompany the front.”

Get involved in the discussion in Marketing Talk.

 

 

Read more about
Loading...

Talk in Marketing