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3 Big Things Today, July 27

Soybeans Again Higher Overnight; Weekly Bean Sales Jump, Corn Sales Decline.

1. Soybeans Rise in Overnight Trading; Corn, Wheat Lower

Soybeans were again higher in overnight trading after the U.S. and European Union earlier this week announced a deal in which the bloc would increase purchases of the oilseeds.

President Trump and European Commission President Jean-Claude Juncker announced the deal at a press conference on Wednesday. Soybean futures yesterday closed slightly higher and again saw buying in the overnight session.

The EU deal will calm fears about the escalating trade war with China, which has imposed tariffs on $34 billion worth of U.S. goods, including soybeans, after the U.S. had put duties on the same amount of Chinese goods. The U.S. has threatened to add another $200 million in Chinese wares to the tariff list, while China has been devaluing its currency.

Soybean futures for November delivery rose 5¼¢ to $8.81¼ a bushel overnight on the Chicago Board of Trade. Soy meal added $1.40 to $333.10 a short ton, and soy oil gained 0.11¢ to 28.69¢ a pound.

Corn futures for December delivery fell ¾¢ to $3.75¼ a bushel overnight.

Wheat for September delivery lost 3½¢ to $5.33 a bushel in Chicago, while Kansas City futures dropped 4¼¢ to $5.29¾ a bushel.

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2. Export Sales of Beans Surge in Week to July 19, Corn Sales Decline

Export sales of soybeans jumped in the week that ended on July 19, while corn sales plunged, according to the USDA.

Soybean sales totaled 538,100 metric tons for the marketing year that ends on August 31, the USDA said in a report. That’s up noticeably from the prior week and 69% from the previous four-week average, the government said.

The Netherlands was the biggest buyer at 143,300 metric tons, followed by Egypt at 141,400 tons, and Mexico at 92,500 tons. Germany bought 58,200 tons and Canada purchased 49,700 tons. An unknown customer canceled a shipment for 134,000 tons.

For the 2018-2019 marketing year that starts on September 1, sales came in at 963,800 tons, the USDA said. An unknown buyer bought 406,200 tons of the total, followed by Pakistan, which bought 234,500 tons, and Mexico, which was in for 95,000 tons.

Old-crop corn sales, meanwhile, dropped 47% week to week and 42% from the average to 338,500 metric tons last week. Mexico was the biggest buyer at 110,800 tons, South Korea took 72,000 tons, and Israel bought 47,000 tons. An unknown buyer bought 42,400 tons and Egypt was in for 41,400 tons.

Argentina canceled a cargo of 80,000 tons and France canceled a shipment of 20,000 tons, the USDA said.

New-crop sales registered at 747,500 metric tons, as Mexico bought 249,900 tons, an unknown buyer was in for 125,400 tons, Japan bought 114,000 tons, Taiwan took 79,000 tons, and South Korea purchased 69,000 tons.

Wheat sales for delivery in the 2018-2019 marketing year rose 29% week to week and 7% from the average last week, the government said.

An unknown buyer purchased 100,800 tons, South Korea was in for 80,500 tons, Nigeria took 68,000 tons, Japan bought 51,900 tons, and the Dominican Republic took 40,000 tons. Argentina canceled a shipment for 30,000 tons, Belgium canceled a cargo of 20,000 tons, and Brazil canceled an order for 16,600 tons, the USDA said.

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3. Rainfall Possible in Parts of Nebraska, Iowa; Waterspouts May Form Over Lake Michigan

It’s another relatively quiet day on the weather maps, though the potential for storms remains high in parts of eastern Nebraska and western Iowa.

“There will be a chance of thunderstorms over much of the area today and tonight,” the National Weather Service said in a report early Friday morning. “The chance of severe storms is fairly low.”

Farther east, there’s a “slight chance” of waterspouts over Lake Michigan this morning and limited thunderstorm risks for much of northern Illinois and Indiana starting on Monday, the agency said.

Isolated showers also may fall in parts of Missouri, which has been extremely dry this year. Little rain has fallen in the state in the past 60 days, according to the NWS.

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