3 Big Things Today, July 28
1. Corn, Beans Little Changed Overnight, Wheat Slightly Higher on Tour Results
Corn and beans were little changed as investors are likely unwilling to get too long or short ahead of the weekend, though benign weather is expected.
Little rain is forecast in the Midwest this weekend, though temperatures are off their highs and will top out in the 80s in much of the Corn Belt, according to Accuweather. Rainfall is expected in the east.
Flooding is still an issue in parts of Iowa, Illinois, and Indiana, though rivers are retreating, according to the National Weather Service.
The overnight trade was quiet with most investors sitting on the sidelines.
Corn for December delivery fell ½¢ to $3.87¼ a bushel overnight on the Chicago Board of Trade.
Soybeans for November delivery lost a penny to $10.06½ a bushel overnight. Soy meal rose 20¢ to $329.20 a short ton, and soy oil futures lost 0.13¢ to 34.16¢ a pound.
Wheat got a bid after the Wheat Quality Council tour pegged the hard red spring crop in North Dakota at 38.1 bushels an acre. The state average last year was 46 bushels an acre, according to the USDA.
If realized, it would be the smallest spring wheat crop since 2011, USDA data show.
Wheat for September delivery rose 2¢ to $4.81¾ a bushel overnight, and Kansas City futures gained 3¢ to $4.84 a bushel.
2. Old-Crop Corn Sales at Marketing-Year Low, Soybean Sales Decline Weekly
Old-crop corn sales in the week that ended on July 20 were miserable, while soybeans also declined.
Corn sales for delivery in the 2016-2017 marketing year that ends on August 31 totaled 92,000 metric tons, a marketing-year low, and down 80% from the prior week and 66% from the previous four-week average, according to the USDA.
Sales weren’t terrible, with Japan buying 192,700 tons, Mexico in for 57,500 tons, Colombia taking 12,400 tons, El Salvador purchasing 9,000 tons, and Portugal taking 7,600 tons. Unknown buyers cancelled orders for 194,500 tons, the USDA said.
New-crop sales were decent at 486,600 tons, as unknown buyers were in for 160,000 tons. Mexico bought 136,400 tons and Japan purchased 63,000 tons.
Soybean sales for the 2016-2017 year totaled 303,400 tons, down 26% from the prior week and 8% from the average, the USDA said. The Netherlands bought 139,700 tons, China took 138,500 tons, Thailand was in for 70,300 tons, Japan purchased 27,300 tons, and Egypt bought 22,800 tons.
Again, unnamed buyers cancelled purchases of 135,800 tons, bringing down the total.
For 2017-2018, net sales were reported at 531,800 tons. China bought the bulk of it, taking 192,000 tons. Unknown buyers were in for 123,300 tons, Vietnam bought 63,000 tons, and Japan took 58,200 tons, according to the U.S. government.
Wheat sales were lower at 498,000 tons, down 26% from the prior week but up 5% from the average for this time of year.
Taiwan was in for 105,200 tons, South Korea took 88,100 tons, and Chile was in for 67,300 tons. The Philippines bought 35,000 tons and Mexico purchased 28,200 tons from U.S. supplies, the USDA said.
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3. Storms Rolling Through Mississippi, Ohio River Valleys May Cause Flooding
Strong storms that may turn severe are forecast in the Mississippi and Ohio river valleys today.
Showers and thunderstorms are expected to produce locally heavy rain in parts of southeastern Indiana, northern Kentucky, and central and western Ohio, the National Weather Service said in a report early Friday morning.
“Strong to severe thunderstorms are forecast to develop along a frontal system stretching from portions of the Mississippi Valley into the Ohio Valley,” the NWS said. “These storms may produce heavy rain and flash flooding. The threat shifts east on Friday.”
The weather service has issued a flash flood watch today for much of southern Ohio into Kentucky all the way to the Atlantic Ocean, as storms move through.
In the central Midwest, it looks like it’s going to be mostly dry with temperatures pleasant, topping out in the 80s this weekend. Flooding is still a problem, as warnings are in effect in parts of Missouri, Iowa, and Illinois, according to the NWS.
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