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3 Big Things Today, June 11, 2021

Soybeans, Grains Lower Overnight; Export Sales of Corn Plunge Week-to-Week

1. Soybeans and Grains Drop in Overnight Trading

Soybeans and grains were lower in overnight trading as traders digest yesterday’s World Agricultural Supply and Demand Estimates (WASDE) and crop production reports from the U.S. Department of Agriculture.

Soybean stockpiles at the end of the 2020-2020 marketing year were pegged by the USDA at 135 million bushels, up from the May outlook for 120 million bushels.

Analysts had expected the government to project ending stocks at 122 million bushels.

The agency also raised its projection for 2021-2022 marketing year inventories to 155 million bushels from 140 million a month earlier.

Corn stocks at the end of the 2020-2021 marketing year on Aug. 31 are now pegged at 1.11 billion bushels, down from 1.26 billion a month earlier. Analysts were expecting an outlook for 1.2 billion bushels.

For 2021-2022, the government’s expectation for ending stocks fell to 1.36 million metric tons from 1.51 million.

Still, corn futures fell in sympathy with soybeans in overnight trading.

Wheat stockpiles were seen by the USDA at 852 million bushels, down from 872 million forecast in May and behind trade expectations for 869 million bushels.

Some weather systems are rolling through the northern Plains, though it doesn’t appear much rain will fall where it’s needed most.

Wind advisories are in effect this morning for much of western North Dakota where sustained winds are forecast from 25 to 35 miles an hour and gusts of up to 50 miles an hour are expected this morning, according to the National Weather Service.

In the southern Plains, meanwhile, it’s going to be hot with temperatures reaching into the triple digits heading into the weekend.

Soybean futures for July delivery fell 10 1/4¢ to $15.33 ¾ a bushel overnight on the Chicago Board of Trade. Soymeal lost $1.30 to $380.30 a short ton, while soy oil declined 1.43¢ to 69.03¢ a pound.

Corn futures for July delivery plunged 10 1/4¢ to $6.88 ¾ a bushel.

Wheat futures for July delivery lost 5 1/2¢ to $6.78 ¼ a bushel, while Kansas City futures fell 7¢ to $6.33 ¼ a bushel overnight.

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2. Export Sales of Corn and Beans Lower Week-to-Week, New Wheat Marketing Year Begins

Export sales of corn and beans plunged while a new marketing year for wheat started last week.

Corn sales in the week that ended on June 3 totaled 189,600 metric tons, the USDA said in a report. That’s down 64% from the previous week and 39% from the prior four-week average.

Japan bought 203,700 metric tons, China took 66,200 tons, Colombia purchased 58,200 tons, Mexico was in for 20,000 tons and El Salvador bought 19,3000 tons, the agency said.

The total would’ve been higher but unnamed countries canceled cargoes of 195,700 tons.

Exports for the week totaled 1.65 million metric tons, down 23% from the previous week.

Soybean sales dropped to 15,700 metric tons, a 12% decline week-to-week and a 75% drop from the four-week average, the USDA said.

Indonesia was the big buyer at 68,100 metric tons, followed by Mexico at 58,500 tons and Malaysia at 18,200 tons. Canada bought 10,100 tons of U.S. soybeans and Vietnam purchased 3,700 tons.

Unknown destinations nixed shipments of 86,900 tons and Hong Kong canceled purchases of 66,000 tons, government data show.

Exports for the week were reported at 278,700 metric tons, a 26% increase from the previous week.

Wheat sales in the first three days of the 2021-2022 marketing year that started on June 1 totaled 325,900 metric tons.

South Korea bought 80,300 tons, the Philippines was in for 60,200 tons, an unnamed country took 45,000 tons, Honduras purchased 39,500 tons and Nigeria bought 37,300 tons of U.S. wheat last week.

Around 837,100 metric tons of sales were carried over from the 2020-2021 marketing year.

Exports from June 1 through June 3 were reported at 136,300 metric tons, the USDA said in its report.

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3. Severe Storms Rolling Through Eastern Dakotas Bring Damaging Winds

Severe thunderstorm warnings have been issued for parts of eastern North Dakota, South Dakota and northeastern Nebraska, according to the National Weather Service.

In eastern South Dakota, wind gusts of up to 56 miles an hour were reported at the Yankton airport this morning, the NWS said in a report.

Winds that strong can damage roofs, siding and trees. Thunderstorm watches also are in effect.

“An area of showers and thunderstorms will move across the region this morning,” the agency said. “Isolated stronger wind gusts are possible with any storms early this morning.”

Hot weather is expected in the area this weekend with temperatures in the 90s returning on Sunday.

Further east in parts of northeastern Iowa and southwestern Wisconsin, isolated thunderstorms are possible later today into tonight, the NWS said.

Heavy rainfall and lightning are expected though some storms may turn more severe, bringing hail and damaging winds, the agency said.

In much of central Oklahoma, meanwhile, a heat advisory has been issued and will remain in effect until 8 p.m. tonight.

Heat indexes are forecast to hit between 100 and 110 degrees Fahrenheit today.

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