3 Big Things Today, January 12, 2021
1. Wheat Jumps While Corn and Beans Rise in Overnight Trading
Wheat futures surged and soybeans and corn were higher in overnight trading ahead of a host of government reports due out today.
The U.S. Department of Agriculture will release its World Agricultural Supply and Demand Estimates (WASDE), crop production, grain stocks, and winter wheat and canola seedings reports all at noon in Washington.
The WASDE report is expected to show U.S. corn ending stockpiles at the end of the marketing year on Aug. 31 at 1.599 billion bushels, soybean inventories at 139 million bushels, and wheat stocks at 859 million bushels, according to researcher Allendale.
Those are all down from the prior month’s inventories outlook from the USDA for 1.702 billion bushels for corn, 175 million bushels for soybeans, and 862 million bushels for wheat.
All-winter wheat planting is expected to be at 31.528 million acres, which is composed of 22.14 million of hard-red winter varieties, 5.884 million acres of soft-red winter, and 3.514 million acres of white wheat, Allendale said.
Quarterly grain stockpiles at the start of December are pegged at 11.951 billion bushels for corn, 2.92 billion bushels for beans, and 1.695 billion bushels for wheat, the researcher said.
Wheat futures for March delivery jumped 13¼¢ to $6.48 a bushel overnight on the Chicago Board of Trade, while Kansas City futures surged by 12½¢ to $6.06½ a bushel.
Soybean futures for January delivery rose 6¢ to $13.78½ a bushel overnight. Soymeal added $1.30 to $448.10 a short ton, and soy oil dropped 0.38¢ to 42.25¢ a pound.
Corn futures for March delivery gained 1¾¢ at $4.94 a bushel.**
2. Export Inspections of Corn and Beans Rise Week-to-Week
Inspections of corn and soybeans for overseas delivery were up modestly week-to-week while wheat assessments declined, according to the USDA.
Corn inspections in the seven days that ended on Jan. 7 were reported at 1.13 million metric tons, up from 1.09 million a week earlier, the agency said.
That’s also well above the 483,559 tons assessed during the same week a year earlier.
Examinations of soybeans for offshore delivery rose to 1.78 million metric tons from 1.76 million in the prior week, government data show.
The total also was higher than the 1.15 million tons inspected at the same point in 2019.
Wheat inspections, meanwhile, dropped to 279,390 metric tons, down from 475,524 tons the previous week and 561,774 tons during the same week last year, the USDA said.
Since the start of the marketing year on Sept. 1, government inspectors have examined 16.2 million metric tons of corn for overseas delivery, the agency said.
That’s up from 9.09 million tons during the same time frame a year earlier.
Soybean inspections since the beginning of September are at 40.8 million metric tons, up considerably from the 23 million tons assessed during the same period last year.
Wheat assessments since the start of the grain’s marketing year on June 1 now stand at 15.3 million metric tons, slightly behind the 15.5 million tons examined during the same time frame last year, the USDA said in its report.
3. High Wind Expected in Parts of Montana and the Dakotas Tuesday
High-wind warnings and watches are in effect for most of Montana and parts of the western Dakotas, according to the National Weather Service.
Winds in a couple counties in the region should expect westerly winds from 35 to 45 mph with gusts of up to 70 mph, the NWS said in a report early this morning.
“Strong cross winds will be hazardous to lightweight and high-profile vehicles, including campers and tractor trailers,” the agency said. “There will be a high risk for vehicle blow-overs, particularly along north-to-south oriented roadways.”
In other areas in the region, winds will be sustained from 25 to 35 mph with gusts of up to 60 mph.
Farther east in central Minnesota and northwestern Wisconsin, dense, freezing fog is hitting the area, leading to slick roads in some spots, the NWS said.
Driving conditions also are hazardous due to low visibility, the agency said.