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3 Big Things Today, July 31, 2020

Soybeans, Grains Higher Overnight; Export Sales of Old-, New-Crop Corn Fall.

1. Soybean, Corn Futures Higher Overnight on Signs of Demand

Soybean and corn futures were higher in overnight trading on signs of demand for U.S. supplies.

The U.S. Department of Agriculture’s export sales report showed solid new-crop sales – those for delivery in the marketing year that starts on Sept. 1 – as China snapped up supplies.

New-crop sales topped the 3-million-ton mark last week, the USDA said.

Exporters sold more than 2 million metric tons of corn to overseas buyers with China taking 1.94 million tons, the government said in a report yesterday. Those sales will show up on next week’s report.

Price gains are being capped by favorable weather in much of the Midwest where rain is falling and crop conditions are improving.

About 72% of the U.S. soybean and corn crops were rated good or excellent at the start of this week, according to the USDA.

Soybean futures for December delivery rose 5¢ to $8.93¼ a bushel overnight on the Chicago Board of Trade. Soymeal gained $2.50 to $300.50 a short ton, and soy oil added 0.05¢ to 30.21¢ a pound.

Corn futures for December delivery rose 1¢ to $3.27¾ a bushel.

Wheat futures for September delivery added 4¾¢ to $5.34¼ a bushel overnight while Kansas City futures gained 5¢ to $4.45 a bushel.

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2. Old-Crop, New-Crop Corn Sales Plunge Week-to-Week; New-Crop Beans Impressive

Sales of corn for overseas delivery in the 2019-2020 marketing year that ends on Aug. 31 were a net-negative last week as cancellations more than offset new purchases, according to the USDA.

Purchases in the seven days that ended on July 23 by Colombia of 41,800 metric tons, an unknown country for 27,600 tons, Japan for 13,100 tons, Taiwan for 13,000 tons, and Guatemala for 11,400 tons were offset by cancellations.

Canada nixed shipments for 53,700 tons, Mexico canceled orders for 44,100 tons, Panama canceled cargoes of 22,100 tons, and El Salvador nixed 14,300 tons, the agency said.

For 2020-2021, sales totaled 638,700 tons as an unnamed country bought 245,900 tons, Mexico took 112,000 tons, Japan purchased 100,000 tons, Canada was in for 75,700 tons, and Honduras bought 32,000 tons from U.S. supplies. That was still down from the 2.33 million tons sold the previous week.

Old-crop soybean sales dropped 29% week-to-week to 257,800 tons.

Germany was the big buyer at 152,400 tons, Egypt took 151,200 tons, the Netherlands were in for 116,900 tons, Bangladesh was in for 59,000 tons, and Indonesia purchased 47,100 tons, the USDA said.

For the 2020-2021 that starts on Sept. 1, exporters sold 3.34 million metric tons as China bought 1.99 million tons, an unnamed buyer bought 1.23 million tons, Mexico was in for 64,800 tons, Egypt bought 43,000 tons, and Taiwan purchased 39,000 tons.

Wheat sales for delivery in the grain’s marketing year that started on June 1 totaled 676,600 metric tons, up 10% from the previous week and 30% from the prior four-week average.

The Philippines bought 132,000 tons, Taiwan purchased 102,800 tons, Brazil was in for 62,100 tons, Mexico bought 60,400 tons, and Japan took 60,200 tons, the USDA said.

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3. Flood Warnings Issued in Western Missouri as Flooding Expected to the Mid-Atlantic

Flood warnings and watches are in effect in a narrow slice of land stretching from western Missouri all the way to the Mid-Atlantic, according to the National Weather Service.

In western Missouri, a flash flood warning has been issued in a couple counties near Clinton. Thunderstorms producing heavy rainfall are passing through the region, dropping up to 3 inches of rain already, the NWS said in a report this morning.

“Flash flooding is ongoing or expected to begin shortly,” the agency said.

In extreme southern Illinois and Indiana and in western Kentucky, scattered storms through this evening will produce lots of rain in a short amount of time. Most areas will see up to 2.5 inches of rain, but some localized downpours with 3 to 5 inches are possible, the NWS said.

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