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3 Big Things Today, June 22

Soybeans Rise in Overnight Trading; Export Sales of Corn Plunge, Beans Mixed

1. Soybeans Rise Overnight as Bargain Hunters Snap Up Contracts

Soybeans were higher in overnight trading as more bargain hunters snap up supplies while grains were little changed.

Some end-users are locking in supplies at the low prices, which this week high the lowest in almost 10 years, while speculative investors are trying to bottom-pick and lock in futures contracts.

The ongoing trade war between the U.S. and China has many investors worried about demand for U.S. supplies. In its latest weekly export sales report, the Department of Agriculture said China wasn’t a buyer, as expected, but canceled a shipment of soybeans last week.

The selloff, however, led some users, investors and hedgers back into the market overnight.

Soybean futures for July delivery rose 5 ½ cents to $8.86 a bushel overnight on the Chicago Board of Trade. Soymeal rose $2.60 to $334.40 a short ton and soy oil added 0.07 cent to 29.26 cents a pound.

Corn futures were unchanged at $3.57 a bushel overnight.

Wheat for July delivery fell 2 ¼ cents to $5.04 ½ a bushel overnight while Kansas City futures declined 2 cents to $5.08 a bushel.

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2. Corn Export Sales Plunged Week-to-Week, Soybeans Mixed

Export sales of corn plunged week-to-week after a large order cancellation, the U.S. Department of Agriculture said in a report.

Corn sales in the week that ended on June 14 totaled 165,900 metric tons, down 82% from the previous week and the prior four-week average, according to the USDA. Analysts had pegged sales from 700,000 to 1 million metric tons, according to Allendale.

Mexico was the big buyer at 214,800 metric tons, followed by Japan at 142,600 tons. Peru bought 108,000 tons, Spain was in for 71,500 tons and the Netherlands purchased 65,500 tons. An unknown customer, however, canceled a shipment for 584,700 tons and South Korea canceled s purchase of 61,100 tons, bringing the total down, the government said.

New-crop corn sales were better at 339,700 tons as South Korea bought 191,000 tons, Mexico was in for 73,000 tons and Panama purchased 40,500 tons. Analysts expected sales from 150,000 to 400,000 tons.

Soybean sales last week were mixed at 301,700 as they were down 42% from the previous week but up 48% from the average, according to the USDA. Analysts had expected sales from 300,000 to 600,000 tons

The Netherlands bought 240,30 metric tons, Vietnam purchased 82,300 tons, Saudi Arabia was in for 65,900 tons, Japan bought 54,700 tons and Germany took 52,500 tons. China wasn’t on the buyer’s list, but it did cancel a shipment for 66,000 tons, while an unknown customer cancelled a shipment for 204,300 tons, the government said.

New-crop soybean sales were reported at 227,600 tons as an unknown buyer purchased 172,000 tons and Japan took 23,100 tons. Analysts had expected 100,000 to 400,000 tons.

Wheat sales for the year that started on June 1 totaled 461,600 metric tons as a wide array of buyers were in the market. Analysts had expected sales from 250,000 to 500,000 tons.

The Philippines was the big buyer at 137,000 tons, followed by Japan at 118,500 tons and Thailand at 49,600 tons. Mexico bought 46,300 tons and Ecuador was in for 27,800 tons, the USDA said.

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3. Flooding Expected to Continue Into Next Week in Parts of Illinois, Iowa

Flooding will continue throughout the weekend as more rain falls in northern Illinois and eastern Iowa, pushing rivers and streams over their banks and saturating fields.

Flood warnings are in effect for several counties in the region, according to the National Weather Service. The Iowa River near Marengo was at 10.6 feet and rising, with the flood stage at 14 feet. The river, however, is expected to top 14.7 feet by Monday.

The Mississippi River is at 12.9 feet and rising, with flood stage at 15 feet. The river at New Boston is expected to top its banks on Monday and reach almost 17 feet next week, the NWS said in a report early Friday morning.

Flash flood watches are also in effect for much of the area.

“Periods of heavy rain will continue to be possible through mid-morning,” the NWS said. “Given the recent heavy rainfall amounts, any additional heavy rain may produce localized flash flooding. Area rivers and streams are running high, which will mean rainfall will go more quickly into runoff.”

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