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3 Big Things Today, January 28, 2022

Soybeans, Grains Higher Overnight; Export Sales Surge Across The Board

1. Soybean Futures Surge in Overnight Trading

Soybean futures were higher in overnight trading as the price of palm oil, a competing cooking oil, continue to rise.

Palm oil prices continue to rise after Indonesia, the world's largest producer and exporter, said earlier this week that domestic producers must sell 20% of what they'd planned to ship overseas.

The intention of the new order is to ensure domestic supply.

Exports from the country will fall 3% this year to 33.2 million metric tons, the Indonesian Palm Oil Association said in a report. The forecast doesn't include the 20% producers will be forced to sell to domestic buyers.

Palm oil, which competes with soybean oil, is up about 60% this year.

South American weather is being watched as some rainfall is expected in parts of Brazil and Argentina.

In Brazil, the world's biggest exporter of soybeans, showers fell this week in Rio Grande do Sul, and in parts of Paraguay, Commodity Weather Group said in a report.

Another 3 to 7 inches of precipitation is expected in west- and south-central Brazil, which may slow fieldwork in the next five days, the forecaster said.

In Argentina, short-term stress is limited to 10% of the country while rains are expected in about half of the country's corn and soybean producing regions in the next six to 10 days, CWG said.

Soybean futures for March delivery rose 12 3/4¢ to $14.61 a bushel overnight on the Chicago Board of Trade. Soymeal was up $4.40 to $409.10 a short ton and soybean oil futures jumped 0.83¢ to 65.17¢ a pound.

Corn futures for March delivery gained 3 3/4¢ to $6.29 a bushel.

Wheat for March delivery added 5¢ to $7.82 a bushel, while Kansas City futures rose 6 1/4¢ to $7.99 ¾ a bushel.

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2. Weekly Export Sales of Grains, Beans All Higher

Export sales of grains and beans all jumped in the seven days that ended on Jan. 20, according to the USDA.

Wheat sales jumped 78% week-to-week to 676,700 metric tons, the highest since the grain's marketing year started on June 1, the agency said in a report.

The Philippines bought 111,100 metric tons, Nigeria was in for 110,300 tons, Japan took 102,600 tons, Mexico purchased 80,100 tons and South Korea was in for 78,000 tons.

Exports for the week totaled 360,900 metric tons, down 8%.

Corn sales were reported at 1.4 million metric tons, up 29% from the prior week and 84% from the previous four-week average, the USDA said.

Japan was the big buyer at 563,700 metric tons, followed by Mexico at 266,000 tons and an unnamed country at 102,100 tons. Colombia took 98,400 tons and Guatemala purchased 67,900 tons from U.S. supplies, the government said.

Exports surged 11% week-over-week to a marketing-year high of 1.44 million metric tons.

Soybean sales were reported at 1.03 million metric tons, up 53% from the previous week and 77% from the average, the agency said.

China bought 540,200 metric tons, Mexico took 345,300 tons, Spain purchased 105,900 tons, the Netherlands was in for 84,200 tns and Japan bought 79,000 tons from U.S. inventories.

Exports for the week came in at 1.59 million metric tons, down 12% from the previous week, the USDA said in its report.

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3. Wind-Chill Advisories in Effect For Northern Plains

Wind-chill advisories are still in effect for parts of eastern North Dakota and northern Minnesota this morning, according to the National Weather Service.

Values overnight were expected to fall as low as minus-30 degrees Fahrenheit, the NWS said in a report early this morning.

The advisories are in effect until 8 a.m. central time.

In northern Iowa, wind chills this morning are ranging from 20 to 30 degrees below zero, the agency said. A wind-chill advisory is in effect until 9 a.m. local time.

Extremely dry conditions in central Nebraska, meanwhile, led to a fire-weather watch in the area.

Winds will be sustained from 10 to 20 miles an hour with gusts of up to 30 miles an hour, the NWS said. Relative humidity is forecast as low as 17%.

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