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3 Big Things Today, July 20
1. Grains, Soybeans Higher on Demand, Extremely Hot Weather
Grains and soybeans were higher overnight on signs of demand for U.S. supplies.
Export sales to overseas buyers rose for corn, soybeans, and wheat last week, according to the USDA, a positive sign for demand.
Corn demand has been on a tear recently, and despite China’s absence from the list of soybean buyers, sales have been holding up moderately.
Prices also are being propped up by a heat wave rolling through the southern Midwest this week. Temperatures today and into the weekend are expected to be around 110˚F. in parts of Oklahoma and Arkansas.
Heat indexes all week have been in the triple digits in bigger growing states such as Missouri and eastern Kansas, though some relief is on the way as temperatures are expected to moderate next week, said Joel Widenor, an agricultural meteorologist at Commodity Weather Group.
Corn futures for December delivery rose 2½¢ to $3.67½ a bushel overnight on the Chicago Board of Trade.
Soybean futures for November delivery added 4¢ to $8.65½ a bushel overnight. Soy meal rose $2 to $328.10 a short ton, and soy oil gained 0.01¢ to 28.22¢ a pound.
Wheat for September delivery rose 4¼¢ to $5.08½ a bushel, while Kansas City futures gained 7¢ to $5.03 a bushel.
2. Weekly Export Sales of Grain, Soybeans Rise as Corn Demand Continues to Surge
Export sales of grains and soybeans jumped week to week, according to the USDA.
Corn sales for delivery in the 2017-2018 marketing year that ends on August 31 were reported at 641,000 metric tons, up 59% from previous week and 38% from the prior four-week average, the USDA said.
Japan was the big buyer at 123,800 metric tons, followed by Mexico at 123,200 tons, Saudi Arabia at 77,500 tons, and Egypt at 75,800 tons. An unknown customer canceled a shipment for 96,600 tons, Spain canceled a cargo of 25,800 tons, the UK turfed a shipment for 21,000 tons, and France canceled a cargo of 20,000 tons, according to the USDA.
For 2018-2019, sales totaled 774,500 tons as Mexico bought 245,200 tons, South Korea took 126,000 tons, El Salvador bought 99,700 tons, and Guatemala took 96,100 tons, the USDA said.
Wheat sales in the marketing year that started on June 1 totaled 300,000 metric tons last week, up noticeably from the prior week but down 25% from the average.
The Philippines bought 136,200 metric tons, Thailand was in for 64,000 tons, Honduras bought 42,400 tons, and Brazil was in for 28,000 tons. Cancelations totaling 37,400 also were recorded.
Soybean sales jumped 59% week to week to 252,300 metric tons, the USDA said. Still, that’s down 22% from the prior four-week average.
The Netherlands bought 78,500 metric tons, Canada took 74,300 tons, Iran was in for 71,400 tons, Indonesia bought 70,400 tons, and Mexico purchased 66,600 tons. An unknown customer canceled a shipment for 113,000 tons, Egypt canceled a cargo of 60,000 tons, and the UK canceled an order for 12,000 tons, the USDA said.
For 2018-2019, sales totaled 613,400 metric tons as an unknown buyer bought 433,000 tons, Argentina was in for 120,000 tons, Mexico took 27,000 tons, and Pakistan purchased 25,000 tons. China canceled a shipment for 60,000 tons, the USDA said.
3. Temperatures of 110˚F., Heat Indexes Around 115˚F. Expected in Oklahoma, Arkansas
It’s going to be brutally hot today and through the weekend in much of the southern U.S., according to the National Weather Service.
Excessive heat warnings and heat advisories are in effect for all of Oklahoma, Texas, Arkansas, Louisiana, and Mississippi and parts of southern Kansas and Missouri, the NWS said in a report early Friday morning.
In eastern Oklahoma and western Arkansas, heat indexes will reach almost 115˚F. with actual temperatures around 108˚F., the agency said. Outdoor activity is not advised.
In East Texas, temperatures will rise to the highest since 2011 on Friday and continue throughout the weekend. Temperatures will hit up to 110˚F. with indexes hovering around that areas.
The heat is so bad, the Occupational Safety and Health Administration recommends frequent breaks in the shade or air-conditioning for people working outside.