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322190

3 Big Things Today, December 27, 2021

Soybeans, Grains Higher Overnight; China Wants to Expand Bean Production.

1. Soybeans and Grains Jump in Overnight Trading

Soybean and corn futures surged in overnight trading in the first session after the Christmas break on concerns about crops in South America.

Dry weather in Brazil and Argentina have led to worries about soybeans and corn in the South American countries.

Rains over the weekend were expected to be light as stress builds in some growing areas, according to weather forecasters.

Forecasts are calling for only light precipitation in some areas of Brazil.

In Argentina, meanwhile, crop stress is expected to persist amid dry and hot conditions in northeastern growing areas, underpinning prices.

Wheat futures also were higher amid dry weather in the U.S. Southern Plains.

Little or no rain has fallen in the past 30 days in parts of southwestern Kansas or the Oklahoma and Texas panhandles where hard-red winter wheat is growing, according to the National Weather Service.

Soybean futures for November delivery jumped 11¼¢ to $13.52 a bushel overnight on the Chicago Board of Trade. Soymeal gained $3.10 to $403.60 a short ton, while soy oil added 0.35¢ to 55.77¢ a pound.

Corn futures for December delivery rose 5¾¢ to $6.11½ a bushel.

Wheat futures for December delivery gained 5¼¢ to $8.20 a bushel, while Kansas City futures added 7¢ to $8.68½ a bushel.

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2. China’s Xi Jinping Wants to Expand Soybean Output

Chinese president Xi Jinping said at a conference over the weekend that he expects growers in the Asian country to expand soybean planting, according to a report from Bloomberg News.

Xi said at the Central Rural Work Conference that he wants to see increased farmland protection along with poverty relief in rural areas, the report said, citing China Central Television.

He also wants to expand rural revitalization.

China, the world’s largest importer of soybeans, is expected to grow only 16.4 million metric tons of the oilseeds in the 2021-2022 marketing year, according to the U.S. Department of Agriculture.

That compares with global output of 381.8 million metric tons and U.S. production of 120.4 million tons, the USDA said in a report earlier this month.

Ending stocks in China are pegged at 34.1 million metric tons, down from 34.5 million tons a year earlier.

The Asian nation will import 100 million metric tons of soybeans in the current marketing year, little changed from the previous year, the U.S. Ag Department said.

Xi said he wanted to see increased grain security and supply of agricultural products, the Bloomberg report said.

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3. Blizzards, Winter Storms Expected in Northern U.S.

Blizzard and winter storm warnings are in effect in much of the northern U.S. this morning, according to the National Weather Service.

Snowdrifts of up to 5 feet are expected along with wind gusts of around 45 mph in parts of North Dakota, the NWS said in a report early this morning.

Visibility will be near zero and travel almost impossible.

Farther east in parts of Minnesota, snow accumulations are forecast from 4 to 6 inches with wind gusts of up to 35 mph, the agency said.

“Plan on slippery road conditions,” the NWS said. “Blowing and falling snow could significantly reduce visibility.”

Winter weather also is expected in parts of South Dakota, Wisconsin, and Michigan.

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