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3 Big Things Today, August 14, 2020

Soybeans, Corn Slightly Lower Overnight; Export Sales of New-Crop Corn Plunge Weekly

1. Soybean, Corn Futures Modestly Lower Overnight

Soybean and corn futures were slightly lower in overnight trading as more rain is expected in the Midwest this weekend.

Storms bringing showers are forecast for almost all of eastern Nebraska, much of Iowa and parts of southern Wisconsin, according to the National Weather Service.

Still, some severe weather is expected this evening, including damaging hail and wind, the NWS said, that could further harm crops that were hit by the derecho wind storm earlier this week.

Data from the U.S. Drought Monitor show that the drought in western Iowa expanded in the seven days that ended on Aug. 11 even as some rain fell.

About 19% of the state is suffering from a severe to an extreme drought, indicating crop losses in some counties are imminent, the monitor said. That’s up from about 16% the previous week.

Soybean futures for December delivery fell 2½¢ to $8.97 a bushel overnight on the Chicago Board of Trade. Soymeal lost 50¢ to $298.20 a short ton, and soy oil fell 0.06¢ to 31.13¢ a pound.

Corn futures for December delivery dropped 1¢ to $3.37¾ a bushel.

Wheat futures for September delivery rose ¼¢ to $5.06¾ a bushel overnight while Kansas City futures were unchanged at $4.36 a bushel.

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2. Export Sales of New-Crop Corn Crash While Soybean Sales Surge

Export sales of new-crop corn plunged week-to-week while sales of soybeans for offshore delivery in the marketing year that starts on Sept. 1 jumped, according to the USDA.

Corn sales in the week that ended on Aug. 6 totaled 553,100 metric tons, down from 2.6 million tons a week earlier, the agency said.

Colombia was in for 176,500 metric tons, Mexico took 165,200 tons, an unnamed country bought 129,700 tons, Peru purchased 50,000 tons, and Taiwan took 10,600 tons.

Old-crop corn sales were reported at 377,200 metric tons, up noticeably from the previous week and 18% from the prior four-year average, the government said.

South Korea bought 125,000 tons, Japan purchased 79,300 tons, China was in for 76,500 tons, Colombia took 60,700 tons, and Venezuela bought 59,100 tons.

New-crop soybean sales, meanwhile, jumped to 2.84 million metric tons last week, more than double the 1.41 million tons sold the previous week.

China was the big buyer at 1.71 million tons, an unknown country took 872,500 tons, Mexico bought 74,800 tons, Portugal was in for 49,000 tons, and Taiwan took 43,000 tons, the USDA said.

Old-crop soybean sales were reported at 570,100 metric tons, up 65% week-to-week and 96% from the prior four-week average.

China bought 420,500 tons, the Netherlands took 144,300 tons, Japan purchased 64,500 tons, Egypt was in for 49,600 tons, and Taiwan took 20,300 tons. An unnamed country canceled shipments for 191,000 tons, the agency said.

Wheat sales for delivery in the grain’s marketing year that started on June 1 came in at 367,900 metric tons, down 39% from the previous week and 45% from the average.

South Korea bought 117,900 tons, Japan took 68,600 tons, the Philippines purchased 66,800 tons, Brazil was in for 63,300 tons, and Italy bought 33,600 tons, the USDA said.  

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3. Storms Firing in North Dakota and Oklahoma, Iowa Likely to See Rain Tonight

Severe thunderstorm warnings and watches are in effect for much of south-central North Dakota and a few counties in northern South Dakota this morning as storms rumble through the area, according to the National Weather Service.

A severe storm was moving through the area this morning, bringing golf-ball size hail and wind gusts of up to 70 mph, the NWS said in a report early this morning.

“Expect hail damage to roofs, siding, windows, and vehicles,” the agency said. “Expect considerable tree damage. Wind damage is also likely to mobile homes, roofs, and outbuildings.”

Farther south, storms are firing near the Oklahoma-Arkansas border, bringing rain and wind to the region. Up to 2 inches already fell in some areas while others received up to 4 inches of precipitation, the NWS said.

A flash flood watch is in effect in the area this morning.

In the western and central Iowa, meanwhile, thunderstorms are expected to roll through later this afternoon and last until early Saturday, the NWS said.

“Some storms may be severe late this afternoon into this evening with the primary threats being damaging wind gusts and large hail,” the agency said. “A tornado or two cannot be ruled out.”

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