3 Big Things Today, February 6
1. Soybeans Higher Overnight on Signs of Demand For U.S. Supplies
Soybeans were higher overnight on signs of demand for U.S. supplies while grains were little changed.
Private exporters reported sales of 198,600 metric tons of soybeans to unknown buyers, including 132,000 tons for delivery in the current marketing year that ends on Aug. 31 and 66,600 tons for the following year, the Department of Agriculture said yesterday.
South Korea also bought 130,000 tons of corn for delivery in the current marketing year.
Analysts said there’s some speculative buying in the markets after prices plunged for several sessions prior to today, though some suspect there’s still more downside amid calls for rainfall in Argentina this week and favorable growing conditions in Brazil.
Soybean futures rose 3 ½ cents to $9.73 ¼ a bushel overnight on the Chicago Board of Trade. Soybean meal futures added $2.50 to $329.50 a short ton while soy oil fell 0.06 cent to 32.44 cents a pound.
Corn futures for March delivery fell ¼ cent to $3.58 ½ a bushel.
Wheat for March delivery fell ½ cent to $4.39 ¾ a bushel in overnight trading. Kansas City futures dropped ¼ cent to $4.61 ½ a bushel.
2. Corn, Soybean Inspections Rise Week-to-Week, Wheat For Overseas Delivery Down
Inspections of corn and soybeans rose week to week while assessments of wheat were lower, according to the U.S. Department of Agriculture.
The USDA inspected 1.074 million metric tons of corn for overseas delivery in the week that ended on Feb. 1, up from 1.011 million seven days earlier. Inspectors examined 1.123 million tons during the same week a year earlier.
Soybean inspections totaled 1.304 million tons, up 15% from the prior week, the government said in a report. That’s down from last year’s 1.65 million tons for the same timeframe.
Wheat inspections were reported at 428,557 metric tons last week, down from 581,626 tons a week earlier and 685,235 during the same week in 2017, according to the USDA.
Inspections of all three crops since the start of the marketing year are still well behind last year’s levels for the same week.
Since the start of the marketing year on Sept. 1, inspectors have examined 14.8 million tons of corn for overseas delivery, well below the 22 million tons they’d inspected during the same period a year earlier.
Soybean inspections to date totaled 34.7 million tons, down from 40.5 million a year ago.
Wheat inspections since the start of the grain’s marketing year on June 1 were reported at 16.6 million tons, behind the year-ago total of 17.5 million tons, according to the USDA.
3. Bands of Winter Weather Bring Snow, Ice to Central, Eastern Midwest on Tuesday
Winter weather continues as a band of snowfall is expected in parts of Nebraska, Kansas, Iowa and northern Missouri while another storm moves through parts of southern Missouri and stretches all the way to the East Coast.
In central Nebraska and Kansas, up to 3 inches of snow is expected to fall, creating hazardous travel conditions, with higher totals “not out of the question,” according to the National Weather Service. A winter weather advisory is in effect.
In parts of southern Illinois and southern Indiana, a wintry mix of rain, freezing rain, sleet and snow is expected to fall with actual snowfall accumulations only about 2 inches, the NWS said in a report early Tuesday morning.
Ice accumulations are expected across far southern Indiana and northern Kentucky, however, making roads extremely slick, the agency said. Travel is not advised.