3 Big Things Today, April 13
1. Wheat Drops Third Consecutive Session on Weak Demand, Large Supplies
Wheat futures were down for a third straight day amid signs of weak demand and lofty global supplies.
Export sales of the grain to overseas buyers were down 46% from the prior four-week average last week, the USDA said in a report yesterday.
The dismal sales follow a USDA report earlier this week that showed U.S. stockpiles at the end of the 2017-2018 marketing year that ends on May 31 will rise to 1.064 billion bushels from a prior outlook for 1.034 billion bushels amid falling feed use.
Global inventories were seen at 271.2 million metric tons, up from the March forecast for 268.9 million tons, the government said.
Wheat for May delivery dropped 7¢ to $4.74 a bushel overnight on the Chicago Board of Trade. Kansas City futures lost 8¢ to $5.18 a bushel.
Corn futures lost ½¢ to $3.88¼ a bushel overnight.
Soybean futures for May delivery gained 3¾¢ to $10.64½ a bushel in Chicago. Soy meal added $3.10 to $386.50 a short ton, and soy oil gained 0.08¢ to 31.71¢ a pound.
2. Soybean Sales Jump 33% Week to Week, Corn Sales Drop 7%
Export sales of soybeans jumped week to week, while sales of corn declined.
Soybean sales for delivery in the current marketing year that ends on August 31 totaled 1.51 million metric tons, the USDA said in a report. That’s up 33% from the previous week and 74% from the prior four-week average, according to the government.
Unknown buyers purchased 665,800 metric tons, China was in for 254,700 tons, and Egypt took 132,50 tons. Mexico bought 131,300 tons and Taiwan purchased 96,500 tons, the USDA said.
Exporters also reported sales for delivery in the 2018-2019 year that starts on September 1 of 954,000 tons as unknown buyers took 572,000 tons, China bought 258,000 tons, and Mexico purchased 123,300 tons.
Corn sales, meanwhile, were down 7% from the prior week and 46% from the average at 839,900 tons, according to the government.
Japan was the big buyer at 315,500 tons, followed by Vietnam at 187,200 tons, Mexico at 147,700 tons, Egypt at 144,00 tons, and Saudi Arabia at 125,800 tons. An unknown customer canceled a sale for 429,500 tons, bringing down the net.
Wheat sales were abysmal, though not as bad as last week. Sales of 120,700 tons were up 11% from the prior week but down 46% from the four-week average.
Mexico was in for 54,400 metric tons, Vietnam took 48,300 tons, Japan purchased 35,600 tons, and Malaysia bought 15,700 tons, the USDA said. Reductions were reported by Indonesia, which canceled a contract for 33,500 tons, and unknown customers, which canceled a shipment for 28,100 tons.
Sales for delivery in the 2018-2019 marketing year that starts on June 1 totaled 68,000 tons, the government said.
3. Blizzard Warnings, Snow Expected in Northern U.S., Dry Weather, Strong Winds in South
Crazy weather continues in much of the central U.S. as winter weather hits the north and extremely dry, windy weather continues in the south.
A blizzard warning is in effect for most of South Dakota, central Nebraska, and northwestern Kansas, according to the National Weather Service. The blizzard extends into parts of western Minnesota, northwestern Iowa, and a few counties in eastern Colorado.
Rain will change to snow starting this morning in parts of west-central Nebraska, the NWS said in a report early Friday morning. The transition to snow will continue south and east from there.
North winds also will continue into Saturday, which combined with the snow will create drifts and reduced visibility. Snowfall rates are expected to exceed an inch an hour, the agency said. Accumulations from 10 to 14 inches are possible.
In eastern South Dakota and western Minnesota, up to 8 inches of snow are possible, and strong wind will make for whiteout conditions, the NWS said.
In the Southern Plains, meanwhile, high wind warnings, red-flag warnings, and fire weather watches are all in effect.
A red-flag warning is in effect for much of eastern Kansas, central Oklahoma, all the way down into West Texas. Counties in the Texas and Oklahoma panhandles are included in the warnings. In central Oklahoma, temperatures will rise to the mid-80s with gusts of wind up to 55 mph on Friday, the NWS said.