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3 Big Things Today, December 4

Wheat Futures Lower Overnight; Corn, Bean Inspections Decline Week to Week.

1. Wheat Futures Decline on Weak Demand

Wheat futures declined on signs of slack demand for U.S. supplies, even after Australia lowered its domestic production estimate. Soybeans and corn were little changed overnight.

Inspections of U.S. wheat for overseas delivery since June 1 are down 17% from the same period a year earlier, the USDA said in a report on Monday. Accumulated exports so far this marketing year are down 18% year over year, according to the USDA.

Production of wheat in the U.S. this year are forecast to rise to 1.88 million metric tons from 1.74 million tons last year, government data show.

Still, Australia said today that its wheat production will fall 11% to the lowest level in a decade. Global production is expected by the USDA to drop to 733 million metric tons from 763 million this year.

Wheat for March delivery fell 3¾¢ to $5.17½ a bushel overnight, and Kansas City futures lost 5¼¢ to $5.01¼ a bushel.

Corn futures for December delivery fell 1¾¢ to $3.80¼ a bushel.

Soybeans for January delivery rose ¼¢ to $9.06 a bushel overnight on the Chicago Board of Trade. Soy meal was unchanged at $314.40 a short ton, and soy oil was unchanged at 28.57¢ a pound. 

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2. Corn, Soybean Inspections Decline Week to Week, Wheat Rises

Inspections of corn and soybeans both declined week to week, while wheat assessments increased, according to the USDA.

USDA inspectors examined 1.04 million metric tons of wheat for overseas delivery in the seven days that ended on November 29, the government said in a report. That’s down from the 1.18 million tons inspected a week earlier, but well above the 605,129 tons examined during the same week in 2017.

Soybean assessments also totaled 1.04 million metric tons last week, the agency said. That’s down from 1.12 million tons examined a week earlier and 1.8 million tons inspected a year earlier.

Wheat inspections, meanwhile, rose to 472,665 metric tons, up from 287,603 tons a week earlier and 410,974 tons during the same seven-day period last year, the USDA said.

Corn sales since the start of the marketing year on September 1 have been extremely strong. Inspections of the grain since then are have almost doubled to 14.2 million tons, which compares with 7.89 million tons during the same period in 2017, government data who.

Soybean inspections have been disappointing so far this year, coming in at 13.3 million tons, down from 22.9 million during the same time frame last year.

That could change, however, as the U.S. and China over the weekend announced a trade deal. The White House said in a statement that China would immediately resume purchases of U.S. agricultural goods.

Wheat inspections since the start of the grain’s marketing year on June 1 are now at 10.6 million tons, behind the 2017 pace of 12.8 million tons for this time of year, the USDA said.  

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3. Winter Weather Advisory in Effect For Eastern Nebraska, Western Iowa

A winter weather advisory is in effect for several counties in eastern Nebraska and western Iowa this morning, according to the National Weather Service.

Patchy, freezing drizzle, light snow, and flurries are all falling this morning, the NWS said in a report released early Tuesday. Little accumulation is expected, though conditions will be icy and travelers need to be cautious.

Farther east, in central and eastern Iowa into west-central Illinois, freezing drizzle was causing some ice accumulation on roadways early this morning, the agency said.

“The latest radar trends are showing some patchy freezing drizzle developing across parts of eastern Iowa,” the NWS said. “The freezing drizzle isn’t expected to last long, but it may cause slick spots, especially on untreated or elevated roadways.”

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