3 Big Things Today, December 1, 2020

Soybeans, Grains Higher Overnight; Weekly Export Inspections of Corn, Wheat Rise.

1. Soybean and Grain Futures Improve in Overnight Trading

Soybean and grain futures were higher in overnight trading to start December on concerns about weather in Brazil and continued demand for corn.

Crop stress is expected to rebuild in a third of Brazil’s soybean- and corn-growing areas this week, though that may ease toward the weekend, Commodity Weather Group said in a report.

Growing areas in the far south are expected to remain dry for at least the next six to 15 days, though showers are forecast to return to west-central and northeastern growing regions this weekend, CWG said.

Rainfall was spotty in parts of Brazil, the world’s largest exporter of soybeans, and Argentina last week, which could lead to increased plant stress in the South American countries.

Rainfall levels through Dec. 3 are expected to be well below-normal in Mato Grosso, Mato Grosso do Sul, Goias, Minas Gerais, and Bahia.

Corn prices got a boost after exporters reported separate sales of 140,000 metric tons and 204,000 metric tons of the grain to unnamed overseas buyers. Exporters are required to report sales of 100,000 metric tons or higher to the U.S. Department of Agriculture.

Export sales of corn have been robust in recent weeks, buoying prices, though exporters haven’t reported any sales of 100,000 metric tons of soybeans or more since Nov. 9

Still, export sales and accumulated exports of beans and corn since the beginning of September are still well ahead of where they were at this point last year.

Sales of soybeans since the start of the marketing year now stand at 51.9 million metric tons, up 106% from the same time frame in 2019, the USDA said. Corn sales are up 162% year-over-year at 36.9 million tons.

Wheat sales since the start of the grain’s marketing year on June 1 totaled 18.2 million metric tons, an 11% increase from the same period last year.

Soybean futures for November delivery rose 5¾¢ to $11.74¼ a bushel overnight on the Chicago Board of Trade. Soymeal added $1.80 to $392.30 a short ton, and soy oil gained 0.39 to 37.88¢ a pound.

Corn futures rose 2½¢ to $4.28½ a bushel.

Wheat futures for September delivery were up 2¾¢ to $5.87¾ a bushel, while Kansas City futures gained 3¢ to $5.50 a bushel.

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2. Export Inspections of Corn and Wheat Improve Week-to-Week

Inspections of corn and wheat for export rose week-to-week while soybean assessments declined, according to the USDA.

Corn export inspections in the seven days that ended on Nov. 26 totaled 890,033 metric tons, up from 832,882 tons the previous week, the agency said.

That also was higher than the 439,633 tons assessed during the same week a year earlier.

Wheat examinations last week were reported at 502,788 metric tons, up from 363,452 tons the prior week, government data show. Inspections during the same week in 2019 came in at 334,904 tons.

Soybean inspections, meanwhile, totaled 2.04 million metric tons, down from 2.23 million tons the previous week. Still, that was up from the 1.58 million tons assessed at the same point last year.

Demand has been robust in recent weeks for corn, though reports of large purchases of soybeans by offshore buyers has waned.

Exporters haven’t reported any sales of 100,000 metric tons or more of U.S. soybeans in more than three weeks.

Since the start of the marketing year on Sept. 1, the USDA has inspected 10.1 million metric tons of corn for overseas delivery, up from 6.05 million tons during the same time frame last year.

Soybean assessments since the beginning of September now stand at 26.7 million metric tons, up from 16 million for the same period in 2019.

Wheat inspections since the start of the grain’s marketing year on June 1 now stand at 12.9 million metric tons, up from 12.7 million tons at the same point last year, according to USDA data.

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3. Winter Storm Watches, Warnings Expected in Parts of Kansas, Oklahoma, and Ohio

A winter storm watch has been issued for parts of central and southern Kansas and northern Oklahoma as heavy snow is possible tomorrow, according to the National Weather Service.

Accumulations are pegged from 2 to 4 inches starting Wednesday afternoon and lasting late into the night, the NWS said in a report early this morning. Road conditions are expected to be slippery and visibility will be reduced.

Along with the snow, wind gusts of up to 25 mph are in the forecast, the agency said.

Farther east in a large chunk of land stretching from eastern Michigan through Ohio and down into Kentucky and Tennessee, winter storm warnings and weather advisories are in effect.

In northern Ohio, heavy snow is already falling with up to 16 inches possible with even higher amounts expected in higher elevations south of Cleveland, the government said.

Wind gusts of up to 35 mph are expected, which will make travel difficult to impossible, the agency said in a Tuesday morning report.

“Snow at all locations will continue through today,” the NWS said. “Snow will diminish from west to east this afternoon with lingering lake-effect snow expected tonight into Wednesday.”

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