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3 Big Things Today, June 2, 2020

Soybeans Rise in Overnight Trading; Export Inspections Higher Across the Board.

1. Soybean Futures Higher in Overnight Trading

Soybean futures were higher overnight on speculation that China will continue to buy U.S. agricultural products despite reports suggesting the Asian country would halt purchases.

Several reports indicated that Beijing would stop buying several items including soybeans, pork, and corn, putting the Phase One trade agreement with the U.S. in jeopardy.

The Trump administration said on Friday that it would end protections for Hong Kong after China implemented rules that critics claim reduces the city’s autonomy.

China’s Foreign Ministry said Tuesday that it has no information regarding a stoppage of purchases, and the country director for China at the U.S. Soybean Export Council reportedly told the state-run Global Times newspaper that purchases have thus far been unaffected.

Reuters reported Monday that China had bought 180,000 metric tons of U.S. soybeans, citing three traders with knowledge of the transaction.

Soybean futures rose 4¼¢ to $8.44¾ a bushel overnight on the Chicago Board of Trade. Soy meal futures gained 40¢ to $283.50 a short ton, and soy oil rose 0.27¢ to 27.87¢ a pound.

Corn futures were unchanged at $3.23¼ a bushel overnight.

Wheat futures for July delivery fell 2¢ to $5.13¼ a bushel, while Kansas City futures lost 6¢ to $4.56½ a bushel. 

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2. Export Inspections Higher Across the Board Week to Week, USDA Says

Inspections of corn, wheat, and beans for export were all higher in the seven days that ended on May 28, according to the USDA.

Corn assessments for offshore delivery totaled 1.13 million metric tons last week, up from 1.1 million tons a week earlier, the USDA said in a report. That’s also up from the 744,840 tons inspected during the same week a year earlier.

Wheat inspections were up to 499,353 metric tons from 464,857 tons the previous week. The total, however, was down from the 593,137 tons inspected at the same point last year.

Examinations of soybeans over overseas delivery came in at 396,387 metric tons, down from 342,571 tons a week earlier, but down from the 510,482 tons inspected in the same week in 2019, the USDA said.

Since the start of the marketing year on September 1, the government has inspected 28.5 million metric tons of corn for overseas delivery. That’s down from the 39.3 million tons assessed during the same time frame a year earlier.

Soybean inspections since the start of September are now at 35.4 million metric tons, just ahead of the 34.2 million tons assessed at this point last year.

Wheat assessments since the start of the grain’s marketing year on June 1 stood at 24.9 million metric tons as of May 28, narrowly changed from the 24.8 million tons inspected during the prior-year period, the USDA said in its report.

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3. Scattered Thunderstorms, Some Severe, Expected in Parts of South Dakota and Nebraska

Scattered showers are expected in parts of South Dakota and west-central Minnesota today, which a “marginal” risk of severe thunderstorms, according to the National Weather Service.

Storms are expected to flare up again tomorrow and Thursday in the region, and some thunderstorms are forecast for Friday and Saturday.

Farther south in much of Nebraska, isolated severe storms are possible later this afternoon with large hail and strong winds being the primary concerns, the NWS said in a report early this morning.

Hot weather also is expected in the state. Isolated thunderstorms, some bringing hail and “damaging” winds, are likely tomorrow and Thursday, the agency said.

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