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3 Big Things Today, April 23, 2021

Soybeans, Grains Lower Overnight; Export Sales Weak For Beans and Wheat.

1. Soybeans and Grains Drop in Overnight Trading

Soybeans and grains fell in overnight trading on improved weather in the U.S. Midwest and Plains and as some investors who were long the market, or had bet on higher prices, booked profits after futures hit multiyear highs.

Freezing weather that’s plagued the Corn Belt and northern and southern wheat-growing areas in the past week have moved east.

Forecasts are calling for rainfall today and through the weekend in some parts of Missouri and Kansas, which will improve soil moisture for newly planted crops or those about to be seeded.

The Northern Plains will see light showers next week, which should relieve some drought conditions ahead of spring planting, according to Commodity Weather Group.

The entire state of North Dakota is suffering from some sort of drought and has been since the beginning of the year, according to the U.S. Drought Monitor.

Almost 95% of South Dakota also is in a drought, which is actually better than it was at the start of the year when 100% of the state was suffering from some sort of drought rating, the monitor said.

It’s not all good news, however, as topsoil in parts of the central and southern Plains likely will diminish, curbing wheat recovery after freezing weather this week, CWG said in a report.

Rains in the next 11 to 15 days likely will be limited to about half of the Wheat Belt, the forecaster said.

Corn prices on Thursday were limit up while soybeans for May delivery jumped 36¢ and July wheat rose more than 35¢.

Speculative investors who held long positions, anticipating higher prices, likely sold contracts overnight after corn futures hit the highest in almost eight years and soybeans jumped to a nearly seven-year high.

Soybean futures dropped 5¼¢ to $15.09 a bushel overnight on the Chicago Board of Trade. Soymeal lost $2.70 to $422.60 a short ton, and soy oil fell 0.02¢ to 58.93¢ a pound.

Corn futures for May delivery fell 8¢ to $6.23½ a bushel.

Wheat futures for May delivery lost 8½¢ to $7.02 a bushel, while Kansas City futures dropped 4¼¢ to $6.70½ a bushel.

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2. Export Sales of Beans and Wheat Fall While Corn Sales Rise

Export sales of soybeans and wheat dropped week-to-week while corn sales improved, according to the USDA.

Soybean sales in the seven days that ended on April 15 were reported at only 64,300 metric tons, the agency said. That’s down 29% from the previous week but up 25% from the prior four-week average.

Japan was the big buyer at 58,200 metric tons, Bangladesh took 55,000 tons, Indonesia purchased 14,800 tons, Canada was in for 10,300 tons, and Colombia bought 8,300 tons.

The total would’ve been higher but China canceled cargoes for 51,200 tons and an unnamed country nixed shipments of 37,200 tons, the government said in a report.

Sales for the 2021-2022 marketing year that starts on Sept. 1 totaled 315,300 metric tons.

Exports for the week dropped to a marketing-year low of 226,400 metric tons, down 45% week-to-week, the USDA said.

Wheat sales also declined, falling noticeably to 240,200 metric tons. Still, that’s up 55% from the prior four-week average.

Mexico bought 137,500 metric tons, Taiwan took 46,300 tons, Japan purchased 30,300 tons, Italy was in for 11,500 tons, and the Philippines took 11,000 tons.

Sales for the 2021-2022 marketing year that starts on June 1 came in at 373,800 metric tons.

Exports in the seven days through April 15 totaled 561,000 metric tons, up 20% from the previous week, the agency said.

Corn sales jumped to 387,500 metric tons last week, up 18% from the previous week, the USDA said. That’s still down 75% from the prior four-week average.

Mexico purchased 366,300 metric tons, South Korea took 134,600 tons, Japan bought 103,500 tons, Colombia was in for 80,600 tons, and Taiwan bought 72,800 tons.

Unknown countries canceled shipments totaling 215,800 tons and China nixed an order for 123,900 tons, the Ag Department said.

Exports for the week totaled 1.61 million metric tons, down 12% from the previous week, the USDA said in its report.

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3. Freeze Warnings Move East Into Ohio and Mid-Atlantic Region

The freeze warnings and watches that have lingered over the Midwest this week have moved to the east with parts of Ohio and Kentucky and several states in the Mid-Atlantic region still seeing extremely cold weather, according to the National Weather Service.

In much of Ohio, Kentucky and a few counties in eastern Indiana, temperatures this morning were expected to fall as low as 29°F., the NWS said in a report early this morning.

A freeze warning for the area is in effect until 9 a.m. local time.

Farther west, more favorable crop weather is brewing.

Scattered rain is expected this afternoon and evening in much of central Missouri and parts of eastern Kansas, the agency said.

In the southern Plains, some thunderstorms are possible along the Kansas-Oklahoma border this afternoon and evening.

Still, dry weather in the region will create “significant risk of wildfire spread Sunday and Monday,” the NWS said. Temperatures also are expected to warm through the weekend.

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