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3 Big Things Today, June 26, 2020
1. Soybean, Grains Little Changed in Overnight Trading
Soybeans and grains were little changed overnight as investors weigh improved weekly demand against beneficial rain in the Corn Belt.
Export sales of beans and corn rose weekly, according to a report from the U.S. Department of Agriculture. Still, the agency has reported only one sale of more than 100,000 metric tons in the past week.
Demand has been uncertain as the COVID-19 pandemic wears on. China has been in the market for soybeans lately, but how much they’ll buy also is unclear.
Crops have been receiving beneficial rain in the past few days, a pattern that’s likely to continue. Rain is expected in much of the Corn Belt today and through the weekend, forecasters said.
Commodity Weather Group said rain is expected in the Midwest through Saturday and will favor central and eastern parts of the region. A wet one- to five-day outlook will narrow dryness in the eastern Midwest, CWG said.
About 70% of the U.S. soybean crop was in good or excellent condition at the start of the week. While that’s down from 72% seven days earlier, it’s still up from the 54% that earned top ratings at the same time last year.
Some 96% was planted, just ahead of the prior five-year average of 93% for this time of year, and 89% had emerged as of Sunday, up from the normal 85%, the USDA said.
Soybean futures fell 1¢ to $8.67¼ a bushel overnight on the Chicago Board of Trade. Soymeal futures fell 40¢ to $292.60 a short ton, and soy oil rose 0.01¢ to 27.55¢ a pound.
Corn futures for July delivery rose 1¢ to $3.29 a bushel overnight.
Wheat futures for July delivery lost ¾¢ to $4.87½ a bushel, while Kansas City futures fell ¼¢ to $4.37¼ a bushel.**
2. Export Sales of Corn and Beans Higher Week-to-Week
Export sales of corn and beans for the seven days that ended on June 18 were higher week-to-week, but down from their respective prior four-week averages, according to the USDA.
Corn sales for delivery in the marketing year that ends on August 31 came in at 461,700 metric tons, up 29% from the previous week but down 11% from the average, the agency said.
Mexico was the big buyer at 295,700 metric tons, followed by Peru at 87,400 tons, and China at 66,100 tons. South Korea bought 65,500 tons, and Japan took 36,900 metric tons.
For the 2020-2021 marketing year that starts on September 1, sales were reported at 77,100 metric tons.
Old-crop soybean sales totaled 601,900 metric tons, a 12% increase from the previous week but a 10% decline from the average, the USDA said.
China was the big buyer at 172,500 metric tons, an unknown country purchased 92,000 tons, Egypt was in for 67,200 tons, Spain bought 55,000 tons, and Algeria took 35,000 tons.
For the 2020-2021 year, sales came in at 560,700 tons as China took 393,000 tons, an unnamed buyer purchased 66,000 tons, Switzerland was in for 60,000 tons, and Taiwan bought 25,800 tons, the agency said.
Wheat sales last week for delivery in the marketing year that started on June 1 were reported at 518,700 metric tons as Japan bought 88,000 metric tons, Nigeria took 83,1000 tons, South Korea purchased 78,900 tons, Mexico was in for 74,200 tons, and Italy bought 42,400 tons, the USDA said in its report.
3. Strong Storms Expected in Parts of Nebraska, Iowa, and Illinois Into the Weekend
Strong storms are expected in much of eastern Nebraska and western Iowa today and tonight, and are forecast to shift south into Kansas and Missouri before midnight, according to the National Weather Service.
Large hail and damaging winds are the biggest concerns along with heavy rainfall, the NWS said in a report early this morning. Chances of thunderstorms will persist through the weekend and into next week.
“Scattered showers and thunderstorms will remain likely off and on through the weekend,” the agency said. “The severe threat remains very low at this time.”
Storms also will linger in eastern Iowa and northern Illinois heading into the weekend.
Another round of storms is expected later in the afternoon and into the early evening, with some turning severe, the NWS said. Strong winds are likely along with a low chance of a tornado.
Several rivers and streams in the area are overrunning their banks, and storms likely will last through the weekend, the agency said in its report.