3 Big Things Today, April 16, 2021

Soybeans, Corn Rise Overnight; Export Sales Abysmal Across the Board.

1. Soybean and Corn Futures Rise in Overnight Trading

Soybean and corn futures were higher overnight amid adverse weather in U.S. growing areas.

Ahead of the prior five-year average of 3% for this time of year, 4% of U.S. corn was planted at the start of this week, according to the Department of Agriculture.

Still, snowfall in western Nebraska and dry weather in areas of Iowa are causing concern as farmers attempt to get their seeds in the ground.

While the snow will no doubt limit planting in parts of the western Corn Belt, Commodity Weather Group said mostly dry weather will allow producers to accelerate seeding in areas of the Midwest. Cold weather in parts of the region, however, will limit germination, the forecaster said.

Spring wheat areas in the northern Plains will be mostly dry in the next two weeks, but cold weather will slow crop development in areas where plants were seeded early, CWG said.

In the southern Plains, freezing weather may burn back some plants but losses will be limited, the company said in a report on Thursday.

Adverse weather isn’t just affecting the U.S. as dryness in Brazil continues to be a problem. Limited rain in parts of the South American country this weekend likely will be “too light to ease dryness and stress on safrinha corn,” Donald Keeney, an agricultural meteorologist with Maxar, said in a note to clients.

Dry weather in Brazil’s growing areas will spread next week, he said.

Soybean futures jumped 10¼¢ to $14.28½ a bushel overnight on the Chicago Board of Trade. Soymeal added $1.70 to $403.60 a short ton, and soy oil gained 0.52¢ to 55.41¢ a pound.

Corn futures for May delivery rose 2¼¢ to $5.92½ a bushel.

Wheat futures for May delivery fell 1¢ to $6.52¾ a bushel overnight, while Kansas City futures lost 2¾¢ to $6.05 a bushel.

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2. Export Sales Abysmal Across the Board Last Week, USDA Says

Export sales of corn and beans plunged week-to-week and wheat sales dropped to a marketing-year low in the seven days that ended on April 8, according to the USDA.

Corn sales fell to 327,700 metric tons, down 57% from the previous week and 81% from the prior four-week average, the agency said in a report.

Japan was the big buyer at 178,000 metric tons, followed by Mexico at 138,900 tons, South Korea at 125,900 tons, Taiwan at 111,500 tons, and Israel at 55,200 tons.

Unnamed countries canceled shipments totaling 379,900 metric tons, bringing down the total.

Exports were reported at 1.82 million metric tons, down 12% from the previous week.

It wasn’t just corn sales that were abysmal.

Soybean sales fell to 90,400 metric tons last week, down noticeably week-to-week and 14% from the average, the government said.

Indonesia bought 75,900 metric tons, South Korea took 29,600 tons, Vietnam was in for 25,600 tons, Mexico purchased 15,700 tons, and Japan was in for 12,700 tons.

China nixed shipments totaling 55,000 tons, and an unnamed country canceled cargoes of 45,000 tons.

Sales for delivery in the 2021-2022 marketing year that starts on September 1 were better at 265,600 metric tons as China bought 264,000 tons, the USDA said.

Soybean exports for the week totaled 413,100 metric tons, up 20% from the previous week.

Wheat sales plunged to 56,600 metric tons, down considerably from the previous week and the lowest since the grain’s marketing year started on June 1, the government said.

The Philippines bought 19,200 metric tons, the Dominican Republic purchased 17,000 tons, Malaysia was in for 11,500 tons, Colombia bought 8,500 tons, and Singapore took 7,000 tons.

Cancellations were substantial with South Korea nixing cargoes of 35,600 tons, unknown destinations ending shipments for 31,000 tons, Mexico canceling orders for 28,000 tons, and Japan canceling cargoes of 26,500 tons.

Sales for the 2021-2022 year that starts on June 1 came in at 274,400 metric tons, while exports for the week totaled 467,100 tons, down 26% week-to-week, the USDA said in its report.

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3. Snowfall Expected in Western Nebraska as Winter Makes One Last Push

Winter isn’t quite gone as storm warnings and advisories are still in effect in much of western Nebraska, according to the National Weather Service.

Snow accumulations are expected to total up to 10 inches as a storm is forecast to last into this evening, the NWS said in a report early this morning.

“Dangerous travel conditions due to icy, snow-packed roads and low visibilities in falling snow” are the main concerns, the agency said. “The worst road impacts will occur at night and in the early morning hours.”

In central Nebraska and northwestern Kansas, meanwhile, up to 4 inches of snow is expected to fall before transitioning to rain.

In the southern Plains, meanwhile, cold weather will move into the region possibly bringing rain, snow, and thunderstorms out of northern New Mexico. Wind gusts of up to 65 mph are expected.

In much of western Oklahoma, storms are projected to develop this morning with hail up to the size of a quarter expected, the agency said.

“Widespread rain is expected today,” the NWS said. “A few thunderstorms may occur across southern Kansas, especially in the morning hours. Rain may mix with or change to snow late tonight… across parts of central Kansas.”

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