3 Big Things Today, August 7, 2020
1. Soybean Futures Slightly Lower in Overnight Trading
Soybeans were modestly lower in overnight trading on chances of rain in parts of the Midwest.
Precipitation is expected in parts of Iowa that have been dry for at least the past month, according to weather forecasters.
While Iowa is still at risk of missing out on rainfall, precipitation has been adequate in much of the Corn Belt this growing season, Commodity Weather Group said in a report.
In fact, as much as six times the normal amount of rain has fallen in much of Nebraska, Kansas, Missouri, and southern Illinois in the past 30 days, according to the National Weather Service.
The U.S. corn crop was 72% good or excellent at the start of this week, unchanged from the previous week but up from 57% at this point last year, according to the U.S. Department of Agriculture.
About 73% of the soybean crop earned top ratings as of Sunday, up a point from the previous week and well above the 54% good or excellent at the same time in 2019, the USDA said.
Soybean futures for December delivery fell 2½¢ to $8.75½ a bushel overnight on the Chicago Board of Trade. Soymeal added 10¢ to $288.50 a short ton, and soy oil fell 0.3¢ to 30.98¢ a pound.
Corn futures for December delivery were unchanged at $3.23¾ a bushel.
Wheat futures for September delivery rose 1¢ to $5.02¼ a bushel overnight while Kansas City futures added 1½¢ to $4.18¾ a bushel.**
2. New-Crop Corn Sales Jump Weekly as China Makes Big Purchases
New-crop corn sales surged week-to-week as China jumped into the market in a big way while soybean sales dropped, according to the USDA.
Export sales of corn for delivery in the marketing year that starts on Sept. 1 were reported at 2.6 million metric tons.
China bought 1.94 million metric tons, an unnamed country took 276,000 tons, Mexico purchased 252,500 tons, Colombia was in for 84,000 tons, and Taiwan took 18,500 tons. Japan canceled an order for 18,000 tons, the agency said.
Old-crop sales for the year that expire at the end of August totaled 101,600 tons, down “noticeably” from a week earlier and 70% from the prior four-week average.
Soybean sales for the 2020-2021 marketing year, meanwhile, plunged to 1.41 million metric tons from 3.34 million a week earlier, the USDA said.
China also was the big buyer, taking 474,000 metric tons. Mexico purchased 351,900 tons, an unknown buyer took 212,500 tons, Egypt bought 107,000 tons, and Pakistan took 70,000 tons, government data show.
Old-crop soybean sales totaled 345,200 metric tons, up 72% from the previous week but down 22% from the average.
Wheat sales for the grain’s marketing year that started on June 1 totaled 605,500 metric tons, down 11% from the previous week but up 2% from the average for this time of year, the agency said.
China bought 85,000 metric tons from U.S. supplies, Brazil was in for 63,500 tons, Thailand took 61,200 tons, and Nigeria purchased 51,500 tons, the USDA said.
3. Storms Expected Into The Weekend in Parts of Iowa and Missouri
Thunderstorms are expected in parts of Iowa tonight, though they’re not expected to be severe, according to the National Weather Service, potentially bringing relief to counties that have been dry for at least the past month.
“A few thunderstorms may linger across eastern Iowa Saturday morning before diminishing,” the NWS said in a report early this morning. “Additional storms are possible Saturday night and again Sunday evening into Monday morning. A few strong to severe storms may be possible this weekend, with Sunday evening the higher chance for strong storms.”
Little to no rain has fallen in parts of Iowa for at least the past 30 days, maps from the NWS show. The U.S. Drought Monitor said several counties in west-central Iowa are now in an “extreme drought” under which crop losses are imminent.
Heat indexes in the state are expected to be near 100°F. this weekend.
Storms also are expected in parts of eastern Kansas and western Missouri this morning and afternoon that could produce large amounts of rain and cause flooding, the agency said.
More thunderstorms are possible starting Saturday that could produce extremely strong winds. Heat and humidity also will be high this weekend with heat indexes near 103°F., the NWS said.