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3 Big Things Today, April 29, 2022

Soybeans, Grains Higher Overnight; Weekly Export Sales of Corn Slightly Lower.

1. Soybean, Grain Futures Higher in Overnight Trading

Soybeans and grains were higher in overnight trading amid less-than-ideal weather in the U.S. and South America and on signs of global demand.

Rainfall across the Dakotas and Nebraska into Minnesota may slow planting, as will precipitation in the southern and western Midwest, said Don Keeney, an agricultural meteorologist with Maxar.

Corn and soybean sowing are behind their normal paces for this time of year, but it’s still very early in the planting season.

Some 7% U.S. corn crop was in the ground as of Sunday, behind the average of 15% for this time of the year, the Department of Agriculture said in a report earlier this week, and 2% of the crop had emerged from the ground, down from the average of 3%, the USDA said.

About 3% of soybeans were in the ground at the start of the week, behind the prior five-year average of 5%.

The good news is that the rainfall will boost soil moisture. Precipitation also may fall in parts of the southern Plains where it’s been extremely dry.

Little or no rain has fallen in much of the southern Plains in the past 30 days, according to maps from the National Weather Service's precipitation page.

Drought has spread in Kansas, the biggest U.S. producer of winter varieties, with just over 68% of the state seeing drought conditions, according to the U.S. Drought Monitor.

That’s up from 67% a week earlier.

In Oklahoma, meanwhile, 65% of the state was seeing drought, down from 73% a week ago, the monitor said in a report yesterday.

Only 27% of the U.S. winter-wheat crop was in good or excellent condition at the start of the week, down from 30% a week earlier and 49% at the same point last year, the USDA said.

About 11% of the crop was headed, down from the prior five-year average of 19% for this time of year.

Soybean futures for July delivery jumped 13¼¢ to $16.98 a bushel overnight on the Chicago Board of Trade. Soymeal gained $4.90 to $435 a short ton, while soybean oil futures dropped 0.28¢ to 86.32¢ a pound.

Corn futures rose 1¢ to $8.14½ a bushel.

Wheat for May delivery added 9¢ to $10.94¾ a bushel while Kansas City futures rose 4¼¢ to $11.45½ a bushel.

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2. Corn Export Sales Modestly Lower Week-to-Week

Corn sales to overseas buyers were narrowly lower week-to-week while bean and wheat sales both increased, according to the USDA.

Export sales of corn were reported at 866,800 metric tons, down 1% from the previous week and 5% from the prior five-year average, the agency said in a report.

China was the big buyer for the week at 729,200 metric tons, followed by Mexico at 144,900 tons and South Korea at 125,100 tons. Spain bought 55,000 metric tons and Japan was in for 53,100 tons.

The total would have been higher but an unnamed country canceled cargoes of 376,700 metric tons.

Sales for delivery in the 2022-2023 marketing year that starts on September 1 came in at 843,400 metric tons. Exports for the week jumped 31% to 1.56 million tons.

Soybean sales last week were reported at 481,300 metric tons, up 5% from the previous week but down 37% from the average, the USDA said.

China took 165,100 metric tons, Mexico bought 88,100 tons, Bangladesh was in for 56,100 tons, Japan was in for 48,100 tons, and Taiwan purchased 33,900 tons, the agency said.

No cancellations were reported.

Sales for the next marketing year came in at 580,000 metric tons. Shipments last week totaled 710,900 metric tons, down 20% from the previous week.

Wheat sales rose 23% week-to-week to 32,300 metric tons as the grain’s marketing year, which ends on May 31, begins to wind down. The total, however, was down 65% from the same week last year.

Mexico bought 42,400 metric tons, Taiwan was in for 33,000 tons, the Dominican Republic purchased 23,400 tons, Costa Rica was in for 14,700 tons, and Chile bought 7,000 tons, the agency said.

Cancellations for the week included Nigeria at 37,500 tons, an unnamed country at 31,900 tons, Guatemala at 22,200 tons, and Colombia at 12,900 tons.

Sales for the 2022-2023 marketing year that starts on June 1 totaled 124,300 metric tons. Exports for the week fell 51% to 246,000 metric tons, the USDA said in its report.

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3. Dry, Windy Weather Will Persist in Southern Plains

Persistent dry weather in the southern Plains will continue into the weekend as red-flag warnings have been issued from western Kansas through Texas to the Mexican border, according to the National Weather Service.

In southwestern Kansas, winds today will be sustained from 25 to 35 mph with gusts of up to 50 mph, the NWS said in a report early this morning.

Relative humidity will drop as low as 8%.

In the Oklahoma and Texas panhandles, winds will gust up to 35 mph, while humidity will fall as low as 5% today, the agency said.

Parts of the Texas panhandle may see storms this evening, which would bring severe weather to the region.

“A low chance for isolated strong to severe thunderstorms will exist across the extreme southeastern Texas Panhandle and Rolling Plains during the evening hours tonight,” the NWS said. “Hail up to 2 inches and severe wind gusts up to 70 mph will be possible beneath the strongest storms, though most locations will remain dry.”

Farther north in southern South Dakota and central Nebraska, high-wind warnings and wind advisories have been issued over the weekend.

Winds tomorrow in northern Nebraska and southern South Dakota will be sustained from 35 to 45 mph with gusts of up to 60 mph, the agency said.

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