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3 Big Things Today, February 2

Soybeans Lower in Overnight Trading; Corn Export Sales Jumped Last Week.

1. Soybeans Lower Overnight as Rain Added to Argentina Forecast

Soybeans was lower in overnight trading as some rainfall was added to forecasts for Argentina.

While it’s going to be hot and dry in much of the country in the near term, some rainfall is expected this weekend in southwestern Argentina and there’s an “upturn in showers” in the 11- to 15-day forecast that will limit the driest areas in the country’s corn and soy region, Commodity Weather Group said.

Still, it’s going to be hot with temperatures topping 100˚F. in some areas.

Wheat futures declined on forecasts for increased snow cover early next week, which likely will protect plants that don’t have a protective layer already.

Soybean futures for March delivery fell 4¢ to $9.81 a bushel overnight on the Chicago Board of Trade. Soybean meal futures dropped 50¢ to $333.50 a short ton, while soy oil fell 0.23¢ to 32.67¢ a pound.

Wheat for March delivery 2¼¢ to $4.48¾ a bushel in overnight trading. Kansas City futures lost 2¼¢ to $4.64¾ a bushel.

Corn futures declined ¼¢ to $3.61½ a bushel overnight.

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2. Corn Export Sales Almost Double Prior Four-Week Average, Soybean Sales Hit Marketing-Year Low

Export sales of corn topped expectations, while soybeans fell to a marketing-year low last week.

Exporters sold 1.85 million metric tons of corn in the week that ended on January 25, up 28% from the prior week and 93% from the previous four-week average, according to the USDA. Analysts had expected sales from 1 million to 1.5 million tons.

Unknown buyers topped the list at 484,900 metric tons, Mexico was second at 315,900 tons and Japan bought 290,900 tons. Colombia purchased 197,700 tons of U.S. corn, South Korea was in for 132,100 tons, and Egypt took 115,000 tons.

Soybean sales, however, were dismal last week. Exporters sold 359,000 tons of U.S. supplies, the lowest since the 2017-2018 year started on September 1, and down 42% from the previous week and 50% from the average, the USDA said in a report.

Analysts had pegged sales from 600,000 tons to 1 million tons.

China was still the biggest buyer at 456,800 tons, followed by the Netherlands at 76,400 tons. Egypt took 66,000 tons, Japan bought 55,900 tons, and Indonesia was in for 28,000 tons.

Wheat sales were mixed, rising 32% from the prior week to 289,100 tons, but the total is down 48% from the prior four-week average, the USDA said. Analysts expected sales from 300,000 to 500,000 tons.

 Japan was the big buyer at 91,100 tons, followed by Mexico at 65,200 tons, and the Philippines at 38,400 tons. Ecuador purchased 30,600 tons and China bought 30,000 tons.

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3. Dangerous Wind Chills Expected Again in Northern Midwest, Snow Showers Forecast in Iowa

The dangerous wind chills in the northern Midwest will continue today as advisories are in effect, according to the National Weather Service.

Wind chills are expected as low as -30˚F. in much of Wisconsin and parts of Minnesota today, the NWS said in a report overnight.  

Wind chills are also expected to be low in parts of Iowa and Illinois, falling to about -10˚F. to -15˚F. Scattered snow showers with minor accumulation also are expected in the area, according to the agency.

In the Southern Plains, snow showers are expected in parts of New Mexico, mostly at higher elevations. That system will move east and may bring some snowfall early next week to winter wheat country.

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