3 Big Things Today, December 10, 2021
1. Wheat Futures Higher in Overnight Trading
Wheat futures were higher in overnight trading as dry weather settles over the U.S. Southern Plains and amid ongoing concerns about global supplies.
Extremely dry weather is forecast this weekend for the Southern Plains where hard-red winter wheat is growing.
About 46% of Kansas, the biggest U.S. producer of wheat, was suffering from extremely dry conditions or some sort of drought in the week that ended on Dec. 7, the U.S. Drought Monitor said in a report yesterday.
That’s unchanged week-to-week but up from only 31% just three months ago, the monitor said.
Some 93% of Oklahoma is seeing dry or drought conditions, up from 87% a week earlier. Much of the state’s panhandle is experiencing extreme drought, the group’s maps show.
Corn futures were slightly lower overnight while soybeans were little changed after yesterday’s World Agricultural Supply and Demand Estimates (WASDE) report from the U.S. Department of Agriculture.
Ending stockpiles of corn in the U.S. were pegged at 1.493 billion bushels, topping the forecast from analysts polled by Reuters of 1.487 billion bushels.
Soybean inventories at the end of the 2021-2022 marketing year are seen at 340 million bushels, well below the 352 million expected by analysts.
Wheat stocks were pegged at 598 million bushels, the USDA said, up from the trade forecast for 589 million bushels.
Wheat futures for March delivery gained 6¼¢ to $7.83 a bushel overnight on the Chicago Board of Trade, while Kansas City futures added 3½¢ to $8 a bushel.
Corn futures for December delivery were down 1½¢ to $5.90¼ a bushel.
Soybean futures for November delivery rose ¾¢ to $12.65¼ a bushel. Soymeal was up $1.60 to $361.30 a short ton, while soy oil declined 0.31¢ to 54.54¢ a pound.**
2. Weekly Export Sales of Beans and Grains Rise
Export sales of soybeans and grains were higher week-to-week, according to the USDA.
Soybean sales in the seven days that ended on Dec. 2 totaled 1.64 million metric tons, up 54% from the previous week and 27% from the prior four-week average, the agency said.
China was the big buyer at 893,400 metric tons, followed by Egypt at 226,800 tons and Spain at 134,200 tons. Mexico was in for 96,800 metric tons and Indonesia took 83,300 tons.
The total would have been higher, but unnamed countries canceled cargoes totaling 306,400 metric tons.
Exports for the week came in at 2.43 million metric tons, a 5% increase from the previous week, the USDA said.
Corn sales rose 11% to 1.13 million metric tons, an increase of 2% from the average.
Canada bought 258,400 metric tons, Colombia was in for 244,800 tons, China took 202,100 tons, Mexico was in for 65,600 tons, and Peru purchased 62,000 tons.
Exports last week were reported at 904,600 metric tons, down 4% week-to-week, the government said.
Wheat sales last week totaled 239,900 metric tons, up noticeably from the previous week but down 27% from the average.
Guatemala took 68,700 metric tons, Thailand bought 60,000 tons, the Philippines purchased 56,000 tons, Mexico took 51,900 tons, and Colombia was in for 26,000 tons. Unnamed importers canceled cargoes totaling 53,000 tons.
Exports of the grain for the week were reported at 213,400 metric tons, down 43% week-to-week, the USDA said in its report.
3. Winter Storms Expected in Northern U.S. Into the Weekend
Weather maps are lit up this morning amid winter weather in the northern U.S. and extremely dry weather in the Southern Plains.
Winter storm warnings have been issued from central Wyoming northeast into Michigan’s Upper Peninsula, according to the National Weather Service.
In northern Nebraska and southern South Dakota, up to 6 inches of snow are expected today as storms move through the area, the NWS said in a report early this morning.
In southern Minnesota, 6 to 14 inches of snow is possible as a warning is in effect starting at noon and lasting through 6 a.m. tomorrow, the agency said.
“Travel could be very difficult to impossible,” the NWS said.
In northern Wisconsin and Michigan’s Upper Peninsula, a foot of snow is forecast along with a light glaze of ice.
Winds are expected to gust from 30 to 45 mph, causing blowing and drifting snow that may “significantly reduce visibility,” the NWS said.
In the Southern Plains, meanwhile, extremely dry conditions may lead to wildfires.
Red-flag warnings have been issued start at 10 a.m. in southwestern Kansas and the Oklahoma and Texas panhandles, the agency said.
Winds are expected to gust up to 55 mph in some areas and relative humidity is forecast as low as 16%.
“A combination of strong winds, low relative humidity, and warm temperatures will create favorable weather for rapid fire growth and spread,” the NWS said.