3 Big Things Today, January 25, 2023
1. Wheat Futures Jump in Overnight Trading
Wheat surged in overnight trading as bargain hunters continue to jump into the market after prices on Monday plunged 3%.
Futures dropped as precipitation fell in parts of the U.S. southern Plains that had been extremely dry for months. Snow and a wintry mix fell in parts of the Texas panhandle this week, bringing much-needed moisture to the area.
Still, demand for U.S. supplies has been strong.
Wheat sales to overseas buyers in the seven days that ended on Jan. 12 were up noticeably to 473,100 metric tons from 90,800 tons a week earlier, according to the U.S. Department of Agriculture.
The U.S. dollar, meanwhile, remains near eight-month lows, making supplies traded in the greenback including some agricultural commodities cheaper on the global stage.
Export sales for corn and soybeans also were strong last week.
Corn sales rose to 1.13 million metric tons from 255,700 tons a week earlier, and soybean sales rose 38% to 986,200 metric tons, the government said.
Still, soybean prices were lower amid improved precipitation in parts of Argentina.
Wheat futures for March delivery gained 9¾ cents to $7.44 ¼ a bushel overnight on the Chicago Board of Trade, while Kansas City futures added 11 cents to $8.44 ¾ a bushel.
Soybean futures fell 6¼ cents to $14.82 ¼ a bushel. Soymeal was down $1 to $458.80 a short ton, while soy oil lost 0.33 cents to 60.65 cents a pound.
Corn futures for March delivery rose 1¾ cents to $6.78 ¾ a bushel.**
2. Cargill, BASF Bring Feed-Enzyme Development to U.S.
Cargill and BASF will add the U.S. to their existing feed-enzymes development and distribution agreement, the companies said.
"The collaboration will provide more animal feed customers with access to a wide range of high-performance enzyme solutions that we have seen reduce nutrient waste, improve feed efficiency, and sustainably promote animal performance," Mariano Berdegue, the regional manager for Cargill's North America animal nutrition business, said in a statement.
The companies are aiming to improve productivity and sustainability and reduce costs for U.S. customers, the statement said.
Prior to 2021, the companies had only a distribution agreement in place. That year, however, they began jointly developing new enzyme technologies.
With the addition of the U.S., the companies have expanded on their collaboration in several countries including Brazil, Argentina, Mexico, Spain, and Portugal.
"We are proud to be on this journey with Cargill to increase further the value creation opportunities for animal feed customers," said Gisele Santos Bin, the global sales director of feed enzyme and feed performance ingredients at BASF.
3. Winter Weather Still Affecting Parts of Midwest
Winter weather is still slamming parts of the U.S. Midwest with warnings and advisories issued from Missouri to the eastern seaboard, according to data from the National Weather Service.
In southern Missouri, another 2 inches of snow is expected on top of what's already fallen, the NWS said in a report early this morning.
"Roads, and especially bridges and overpasses, are slick and hazardous," the agency said. "Plan on slippery road conditions. Power outages are also occurring due to heavy snowfall."
In central Indiana and western Ohio, up to 9 inches of snow is forecast, making travel very difficult. Wind gusts are expected as high as 35 mph, the NWS said.
A winter-storm warning remains in effect in the area until 7 p.m. local time, the agency said.