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3 Big Things Today, July 13

Soybeans Decline in Overnight Trading; Export Sales of Grains, Beans Decline Week-to-Week

1. Soybeans Decline Overnight After USDA Cuts Exports

Soybeans were lower overnight after the U.S. Department of Agriculture on Thursday slashed its outlook for exports amid an ongoing trade spat with China.

The USDA in its monthly World Agricultural Supply and Demand Estimates (WASDE) report pegged soybean exports at 2.04 billion bushels, down from the June outlook for 2.29 billion bushels.

Stockpiles at the end of the 2018-2019 marketing year were raised to 580 million bushels from 385 million by the USDA.

Production of the oilseed was pushed higher with the government now projecting output of 4.31 billion bushels, up from 4.28 billion in a prior report. Yields were unchanged at 48.5 bushels an acre. The production increase was a result of harvested acres being bumped higher.

Corn prices were lower while wheat futures were higher in overnight trading.

Soybean futures for November delivery dropped 8¢ to $8.41¼ a bushel overnight on the Chicago Board of Trade. Soy meal lost $1.50 to $326.20 a short ton, and soy oil fell 0.31¢ to 28.38¢ a pound.

Corn future for December delivery dropped 3½ cents to $3.66¾ a bushel overnight.

Wheat for September delivery rose 4¢ to $4.88½ a bushel while Kansas City futures added 4¾ cents to $4.86 a bushel.


2. Export Sales of Soybeans Plunge Week-to-Week, Corn, Wheat Sales Also Lower

Export sales of soybeans were dismal last week while corn and wheat sales also declined.

Soybean sales to overseas buyers in the week that ended on July 5 totaled 158,600 metric tons, down 72% from the previous week and 62% from the prior four-week average, according to the U.S. Department of Agriculture.

Egypt was the big buyer, taking 176,000 metric tons, followed by Indonesia at 85,800 tons and Taiwan at 68,300 tons. The United Arab Emirates bought 43,800 tons, and Japan was in for 34,700 tons. The total would’ve been considerably larger but an unknown customer canceled a purchase for 296,900 metric tons and Mexico decided against buying a 34,700-ton shipment of soybeans.

For the 2018-2019 marketing year that starts on September 1, sales totaled 270,800 metric tons. An unnamed buyer bought 150,500 tons, Argentina purchased 60,000 tons, and Mexico took 21,800 tons, the USDA said in a report.

Corn sales to overseas buyers, meanwhile, fell 9% from the previous week and 33% from the average to 402,100 metric tons last week.

South Korea was the big buyer at 195,300 tons, Japan took 141,900 tons, Saudi Arabia was in for 110,000 tons, and Indonesia purchased 62,100 tons. As with soybeans, an unknown buyer canceled an extremely large purchase, this time for 435,100 tons, according to the government.

New-crop sales totaled 128,000 metric tons with Mexico buying 105,000 tons and an unnamed buyer taking 20,000 tons.

Wheat sales for delivery in the current marketing year that started on June 1 were reported at 136,400 metric tons.

Nigeria bought 78,000 metric tons, the Philippines took 75,800 tons, Guatemala was in for 34,100 tons, and Indonesia purchased 22,000 tons. An unknown customer canceled a purchase of 129,300 tons, the USDA said.  


3. Flash Flood Watches, Flood Warnings Issued for Parts of Upper Midwest

Flash flood watches and flood warnings are in effect for several counties in southeastern South Dakota, southwestern Minnesota, and parts of eastern Nebraska and Iowa.

Thunderstorms this morning in South Dakota and Minnesota will continue to bring heavy rainfall at rates of 1 to 2 inches an hour, which likely will cause flash flooding, according to the National Weather Service.

The storms are expected to weaken by late morning, which should end the flash flood threat.

In Iowa, thunderstorms are expected to move into the state today, the NWS said in a report early Friday morning.

“Thunderstorms are expected to move over central Iowa this afternoon into tonight tapping into a moisture-laden atmosphere,” the agency said. “While it has been relatively dry over the last week or so, efficient rain-producing storms are possible that could lead to flash flooding late this afternoon into Saturday morning.”

Just south, a heat warning is in effect for much of eastern Kansas and Oklahoma, almost all of Missouri and Arkansas, and parts of Illinois and southeastern Iowa.

Temperatures in northern Missouri are expected to be in the 90s with the heat index topping 105°F., the NWS said.

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