3 Big Things Today, August 28, 2020
1. Soybeans and Corn Mixed in Overnight Trading
Soybean and corn futures were mixed in overnight trading as some precipitation is expected in the driest parts of the Midwest, though exactly how much each area will receive is in question.
Storm warnings have been issued in parts of Iowa, Minnesota, and Wisconsin where the weather could turn severe. Still, that should bring some much-needed rainfall to areas suffering from drought conditions.
In Illinois, only “widely scattered” thunderstorms are expected today and tonight.
In Iowa, about 23% of the state is under is under a severe drought while another 6.5% is seeing an extreme drought, the U.S. Drought Monitor said in a report released yesterday.
Under a severe drought, dryland corn will see “extremely low” yield and livestock will be stressed. In an extreme drought, however, pastures turn dry, livestock producers will have to sell cattle, and crops will see increased levels of toxins and pests, data from the monitor show.
At the start of this week, 69% of the U.S. soybean crop was in good or excellent condition, down from 72% seven days earlier, according to the Department of Agriculture.
Only 64% of the corn crop earned top ratings vs. 69% the previous week, the USDA said.
Soybean futures for November delivery rose 3¾¢ to $9.45¾ a bushel overnight on the Chicago Board of Trade. Soymeal gained $1.50 to $304.60 a short ton, and soy oil fell 0.03¢ to 33.47¢ a pound.
Corn futures for December delivery were down ¾¢ to $3.57¾ a bushel.
Wheat futures for September delivery added ¾¢ to $5.51½ a bushel, while Kansas City futures gained 1¼¢ to $4.73½ a bushel.**
2. Weekly New-Crop Corn Sales Higher While Bean Sales Decline
New-crop corn sales jumped while bean sales plunged week-to-week, according to the USDA.
Corn sales for delivery in the marketing year that starts on Sept. 1 were reported at 1.18 million metric tons, the agency said. That’s up from 723,300 tons a week earlier.
China was the big buyer, taking 666,000 metric tons, Mexico bought 233,000 tons, an unnamed country purchased 156,200 tons, Japan was in for 50,000 tons, and Guatemala bought 20,300 tons, the USDA said in a report.
Old-crop sales for delivery before the end of the month totaled 270,4000 metric tons. Japan bought 97,900 tons, Taiwan took 91,200 tons, Mexico was in for 52,300 tons, Colombia purchased 45,800 tons, and China bought 19,400 tons.
Soybean sales for delivery in the 2020-2021 marketing year, meanwhile, dropped to 1.87 million metric tons last week from 2.57 million the previous week, government data show.
An unknown country bought 822,000 tons, China purchased 592,000 tons, Pakistan was in for 136,000 tons, Indonesia bought 75,800 tons, and Thailand took 74,500 tons.
Sales for delivery before Aug. 31 came in at 50,400 metric tons as purchases of 213,500 tons by the Netherlands, 168,600 tons by China, 71,500 tons by Spain, 21,600 tons by Lebanon, and 20,200 tons by Thailand were offset by cancelations of 469,300 tons by unknown countries, the USDA said.
Wheat sales for delivery in the grain’s marketing year that started on June 1 totaled 764,100 metric tons, up 46% week-to-week and 41% from the same time frame last year.
Mexico bought 134,300 tons, China purchased 123,000 tons, an unnamed country took 102,500 tons, Indonesia was in for 86,100 tons, and the Philippines bought 53,600 tons. Ecuador canceled cargoes for 9,800 tons and Sri Lanka nixed shipments for 3,400 tons, the USDA said.
3. Strong Storms Expected to Make Their Way Through Upper Midwest Today
A severe thunderstorm watch is in effect for parts of southeastern Minnesota as a line of thunderstorms moves through the area, according to the National Weather Service.
Wind gusts of up to 50 mph were recorded earlier this morning, and large hail and an isolated tornado can’t be ruled out, the NWS said in a report early this morning. The storm is moving east at 50 mph.
More storms are possible this afternoon in the region with hail up to 2 inches in diameter and wind gusts of up to 70 mph the main threats, the agency said.
In south-central Wisconsin, meanwhile, thunderstorms are expected to hit the area today with some turning severe. Heavy rainfall, some hail, and strong winds are the main threats, the NWS said.
In Iowa, strong storms are expected this afternoon and evening, mostly east of Interstate 35, the agency said. Large hail, damaging winds, and an isolated tornado are all possible.