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3 Big Things Today, February 9
1. Grains, Soybeans Lower After USDA Report, Forecasts For Wetter Weather
Grains and soybeans were lower after yesterdays World Agricultural Supply and Demand Estimates (WASDE) Report and as forecasts add rainfall in Argentina and in the U.S. Southern Plains.
The USDA raised its outlook on soybean stockpiles to 530 million bushels from 470 million a month earlier amid weak exports. Wheat inventories also were increased to 1.009 billion bushels from the USDA’s January estimate of 989 million bushels.
Corn stocks, however, were lowered to 2.352 billion bushels from the prior outlook for 2.477 billion bushels.
More rainfall is expected in the northern third of Argentina as models show increased risk of precipitation in the six- to 10-day forecasts, Commodity Weather Group said. In the U.S. Southern Plains, there’s a risk of wetter weather in the latter half of the month, the forecaster said.
Wheat for March delivery fell 5½¢ to $4.50¾ a bushel overnight on the Chicago Board of Trade. Kansas City futures declined 4¾¢ to $4.69¾ a bushel.
March corn dropped 2¼¢ to $3.63½ a bushel in Chicago.
Soybean futures for March delivery lost 3½¢ to $9.84¼ a bushel overnight. Soymeal futures declined $1.40 to $340.30 a short ton, and soy oil rose 0.20¢ to 32.41¢ a pound.
2. Corn Sales Top Four-Week Average, Soybean Sales Jump Through Last Week
Export sales of corn were down slightly from the prior week but well above the four-week average, while soybean sales jumped.
Corn sales in the week that ended on February 1 totaled 1.77 million metric tons, down 4% from the previous week but up 27% from the average, according to the USDA.
Unknown buyers were the biggest customers, taking 426,600 metric tons, the USDA said. South Korea bought 330,200 tons, Egypt was in for 225,000 tons, and Spain purchased 198,000 tons. Japan was in for 152,900 tons and Colombia bought 114,500 tons.
Analysts had expected corn sales from 1.3 million to 1.8 million tons.
Soybean sales came in at 743,200 tons, up considerably from the previous week and 11% from the four-week average, the USDA said.
Mexico was the big buyer at 194,200 tons, while China only bought 164,400 tons. The Netherlands bought 154,900 tons, Indonesia purchased 83,100 tons, and Germany was in for 76,400 tons.
Unknown customers canceled purchases of 205,700 tons. Analysts had expected soybean sales from 400,000 to 700,000 tons.
Wheat sales were reported at 393,400 tons, up 36% from the prior week and 67% from the four-week average, according to the government.
Mexico was the big buyer at 106,400 tons, South Korea took 79,400 tons, Indonesia was in for 74,400 tons, Nigeria bought 34,000 tons, and Japan purchased 33,500 tons. An unknown buyer canceled a sale of 57,400 tons, bringing down the total.
Analysts had expected wheat sales from 200,000 to 500,000 tons.
3. Areas Around Southern Tip of Lake Michigan Getting Blasted by Snow Friday
Northern Illinois, southern Wisconsin, southern Michigan, and northern Indiana are all getting blasted by a winter storm that’s expected to drop as much as 6 inches of snow on the region.
A winter storm warning is in effect this morning, as several inches of snow will make travel miserable. The highest snowfall totals likely will come north of Interstate 80, according to the National Weather Service.
Snow will come to an end over eastern Iowa and western Illinois, and the storm dumping all the snow on eastern Illinois will come to an end sometime this morning, but not after making the morning commute treacherous, the NWS said.
The heaviest snowfall totals will likely be in southern Michigan, where up to 10 inches are expected. A winter storm warning is in effect until 7 p.m. tonight.