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3 Big Things Today, January 14, 2022

Soybeans Lower in Overnight Trading; Export Sales Rise Across the Board.

1. Soybean Futures Drop in Overnight Trading

Soybean futures were lower in overnight trading on signs of improving weather in South America.

Rains this week favored parts of Brazil, the world’s biggest exporter of soybeans, including Mato Grosso, Goias, and Sao Paulo states, said Donald Keeney an agricultural meteorologist at Maxar.

Precipitation is expected next week in southern areas that may boost crop prospects after dry weather through the weekend, the forecaster said in a report.

In Argentina, the weather is expected to remain dry through Saturday, but rains are forecast in east Cordoba, Santa Fe, and north Buenos Aires states Sunday and Monday, Keeney said.

Rainfall next week is forecast to “finally improve conditions” in some growing areas after hot and dry weather this week, he said.

The U.S. Department of Agriculture this week said it now expects Brazilian soybean production at 139 million metric tons, down from a month-earlier forecast for 144 million tons.

Argentina is now forecast to produce 46.5 million metric tons of soybeans, down from the December outlook for 49.5 million tons.

Corn production in Brazil also was lowered to 115 million metric tons from 118 million previously.

Soybean futures for March delivery dropped 5¾¢ to $13.71½ a bushel overnight on the Chicago Board of Trade. Soymeal lost a dime to $408.80 a short ton, and soy oil fell 0.21¢ to 58.23¢ a pound.

Wheat futures for March delivery lost 5¾¢ to $7.41 a bushel, while Kansas City futures were down 10¼¢ to $7.49½ a bushel.

Corn futures for March delivery rose 2½¢ to $5.90 a bushel.

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2. Export Sales Higher Across the Board Last Week

Export sales of grains and beans surged in the seven days that ended on Jan. 6, according to the USDA.

Corn sales last week totaled 457,700 metric tons, up 79% week-to-week, the agency said in a report. That’s still down 59% from the prior four-week average.

Mexico was the big buyer at 278,800 metric tons, Japan took 233,000 tons, China bought 70,200 tons, Canada purchased 27,000 tons, and Nicaragua was in for 16,900 tons.

An unnamed country canceled cargoes totaling 216,300 metric tons.

Exports for the week were reported at 1.01 million metric tons, up 3% from the previous week.

Wheat sales last week came in at 264,400 metric tons, up noticeably from the week earlier, but down 20% from the average, the USDA said.

The Philippines bought 50,000 metric tons, Mexico was in for 42,300 tons, Algeria took 33,000 tons, Japan bought 26,800 tons, and Jamaica purchased 22,000 tons. The French West Indies nixed shipments of 11,500 tons.

Exports for the week came in at 258,400 metric tons, up 23% week-to-week.

Soybean sales surged 92% to 735,600 metric tons, the government said. That’s still down 1% from the average.

China purchased 301,800 metric tons, Mexico took 187,900 tons, Egypt was in for 175,800 tons, Bangladesh bought 57,500 tons, and Indonesia took 33,900 tons from U.S. supplies.

The total would have been higher but unknown countries canceled cargoes of 109,000 metric tons.

Exports for the week, however, dropped 42% to 1.02 million metric tons, the USDA said in its report.

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3. Winter-Storm Warnings in Effect From North Dakota to Illinois

Winter-storm warnings have been issued in a large swath of land stretching from  North Dakota southeast into western Illinois, according to the National Weather Service.

In North Dakota, snowfall is expected to range from 3 to 7 inches with wind gusts as high as 40 mph, the NWS said in a report early this morning.

The winter storm warning in the area is on until 6 p.m.

In central Iowa, meanwhile, as much as 10 inches of snow may fall with local amounts potentially higher, the agency said.

Blowing snow is expected to reduce visibility and travel will be difficult.

Winds will be sustained from 15 to 25 mph with gusts of over 30 mph forecast, the NWS said.

“The winds, combined with snow, will yield very low visibilities at times and produce pockets of blowing and drifting snow, particularly in open, rural areas,” the agency said.

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