3 Big Things Today, July 10, 2020

Corn, Bean Futures Higher Overnight; Weekly Export Sales Report Mixed.

1. Corn, Bean Futures Higher in Overnight Trading

Corn and soybean futures were higher on forecasts for drier weather in much of the Midwest in the next couple of weeks.  

The U.S. precipitation outlook shows a below-normal chance of rain in much of the Corn Belt in the next 10 days, according to Commodity Weather Group.

The five-day outlook shows below-normal precipitation chances for almost all of the Midwest, while the six- to 10-day forecast shows chances of rain are lower than normal in areas other than a swatch of land stretching from southeastern South Dakota east along northern Iowa and into much of Wisconsin.

“Hotter, driver model risks remain in week two for (the) Midwest, but signs of hot, dry model biases persist in extended outlook,” CWG said in a report.

For now, the dryness in the Midwest is primarily in the western fourth of the region, the forecaster said.

Heat advisories are in effect in much of Oklahoma today where indexes will be around 110°F., according to the National Weather Service.

Corn futures for December delivery gained 2¢ to $3.59 a bushel overnight on the Chicago Board of Trade.

Soybean futures for December delivery rose 2¢ to $9.03½ a bushel. Soymeal added 80¢ to $306.20 a short ton, and soy oil gained 0.03¢ to 28.95¢ a pound.

Wheat fell ¼¢ to $5.24¾ a bushel while Kansas City futures lost 3¢ to $4.53¾ a bushel.

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2. Weekly Export Sales of Beans Jump as Corn and Wheat Sales Decline

Export sales of old-crop soybeans in the seven days that ended on July 2 surged while corn sales plunged, according to the USDA.

Soybean sales for overseas delivery in the marketing year that ends on Aug. 31 were reported at 952,200 metric tons, up considerably from the previous week’s marketing-year low of 241,700 tons, the agency said.

China was again the big buyer at 461,400 metric tons, followed by Indonesia at 131,000 tons and Pakistan at 70,000 tons. Bangladesh bought 58,400 tons and Mexico was in for 56,100 tons.

For the 2020-2021 marketing year, sales were reported at 382,100 metric tons, with China buying 192,000 tons, an unnamed country purchasing 92,000 tons, Mexico taking 54,000 tons, Taiwan buying 25,500 tons and Japan taking 7,000 tons, the USDA said.

Old-crop corn sales, meanwhile, dropped 46% week-to-week to 195,200 metric tons.

Colombia bought 102,500 metric tons, Mexico took 90,600 tons, Honduras purchased 13,000 tons, Nicaragua was in for 12,800 tons, and Taiwan bought 11,300 tons. An unnamed customer canceled cargoes for 48,100 tons.

For the 2020-2021 year that starts on Sept. 1, sales were reported at 813,300 metric tons as China took 404,000 tons, Mexico bought 121,900 tons, an unknown customer purchased 70,100 tons. Honduras bought 54,300 tons and Panama was in for 39,000 tons, the government said.

Wheat sales for offshore delivery in the marketing year that started on June 1 came in at 326,100 metric tons, down from the 414,300 tons reported the previous week.

Mexico was the big buyer at 139,400 tons, the Philippines was in for 73,000 tons, Ecuador took 32,200 tons, Haiti was in for 27,500 tons, and Italy purchased 25,200 tons, the USDA said in its report.

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3. Heat Wave Continues in Oklahoma and Texas While Storms Roll Through Kansas

The heat wave continues in the southern Plains today with heat index values in parts of Oklahoma expected to be around 110°F. today, according to the National Weather Service.

A heat advisory is in effect for most of central and eastern Oklahoma into parts of northern Texas, the NWS said in its report. The advisory ends at 7 p.m. Saturday.

Farther north, strong storms are forecast for parts of central and southern Kansas today with the main threats being nickel- to silver-dollar-size hail and wind gusts of up to 60 mph. Rain will be heavy in some areas, which could cause flooding.

Heat indexes in Kansas will be around 100°F., the agency said.

Some scattered storms are expected in parts of central Iowa today as well, which likely will continue into Saturday morning, the NWS said.

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