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3 Big Things Today, June 12, 2020

Grains, Beans Little Changed Overnight; Export Sales Higher Week-to-Week.

1. Grains, Beans Little Changed in Overnight Trading

Grains and beans were little changed overnight as investors weigh ample global supplies against improved weekly demand.

The U.S. Department of Agriculture on Thursday pegged global corn stocks at 337.9 million metric tons at the end of the 2020-2021 marketing year.

While that’s down slightly from the previous month’s forecast, it’s still up from the 312.9 million tons projected for the prior year.

Domestic stockpiles were seen at 3.32 billion bushels, a jump from the previous year’s 2.1 billion bushels.

Global soybean inventories, meanwhile, are forecast at 96.3 million metric tons at the end of the 2020-2021 marketing year, little changed from the previous month’s forecast and down slightly from the year-earlier 99.2 million metric tons.

U.S. stocks are pegged at 395 million bushels, down from 405 million forecast a month ago and 585 million at the end of the previous marketing year.

Export sales of soybeans were up considerably week-to-week while corn sales to overseas buyers rose slightly, the USDA said in a Thursday report.

A warmer and drier trend is expected for the U.S. Midwest in the next week to 10 days, according to Commodity Weather Group forecasters. The weekend will be quiet before temperatures rise, though it’s too early – for now – to be concerned about hot weather, CWG meteorologist David Streit said.

Corn futures for July delivery were up ¾¢ to $3.20½ a bushel overnight on the Chicago Board of Trade.

Wheat futures for July delivery fell 3¾¢ to $4.95½ a bushel, while Kansas City futures dropped ¾¢ to $4.46¼ a bushel. 

Soybean futures rose ½¢ to $8.66½ a bushel overnight. Soymeal futures gained 40¢ to $290.10 a short ton, and soy oil added 0.12¢ to 27.62¢ a pound.

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2. Export Sales of Soybeans Surge Week-to-Week, Corn Sales Up Slightly

Export sales of soybeans jumped week-to-week while corn sales were little changed, according to the USDA.

Soybean sales to overseas buyers in the seven days that ended on June 4 totaled 1 million metric tons, up “noticeably” from the prior week and 36% above the prior four-week average, the agency said.

China was the big buyer at 337,000 metric tons, unknown buyers took 213,200 tons, Mexico was in for 85,000 tons, Japan purchased 72,400 tons, and Taiwan was in for 70,300 tons.

Sales for the 2020-2021 marketing year that starts on Sept. 1 came in at 1.21 million metric tons as an unnamed country bought 644,000 metric tons, China purchased 517,000 tons and Taiwan took 46,000 tons.

Corn sales last week rose 4% to 660,700 metric tons, but that was down 12% from the average, the USDA said.

Japan bought 266,900 metric tons, Colombia was in for 128,700 tons, South Korea purchased 114,800 tons, Mexico took 90,200, tons and Saudi Arabia purchased 59,500 tons, the agency said.

For the 2020-2021 marketing year, sales were reported at 25,900 metric tons as Peru, Jamaica, and Honduras all made purchases.

Wheat sales to offshore buyers in the first four days of the grain’s marketing year, which started on June 1, were reported at 270,400 metric tons.

Guatemala bought 96,000 metric tons, the Philippines took 71,500 tons, Indonesia was in for 66,200 tons, China purchased 63,000 tons, and Colombia bought 29,800 tons.

The total would’ve been higher but an unnamed customer canceled cargoes for 160,400 tons and South African nixed a shipment for 40,000 tons, the USDA said in its report.

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3. Frost Warning Issued in Wisconsin While Flooding Continues Along Mississippi River

A frost warning will be in effect for northern Wisconsin starting late Friday night and rolling into early Saturday morning, according to the National Weather Service.

Skies will be clear, winds will be light, and temperatures will fall into the upper-20s to mid-30s, the NWS said in a report early this morning. The warning lasts from midnight to 6 a.m. Saturday.

Farther south, thunderstorms are forecast this afternoon in parts of eastern Iowa and western Illinois, though they’re not expected to be severe.

Flooding is still an issue on the Mississippi River along the Missouri-Illinois border.

The river at Cape Girardeau, Missouri, was at 34.3 feet yesterday, above flood stage of 32 feet. The good news, however, is the river is expected to drop below flood stage on Wednesday, the NWS said.

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