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3 Big Things Today, March 25, 2022

Soybeans, Grains Lower Overnight; Weekly Export Sales of Corn, Beans Fall.

1. Soybeans and Grains Down in Overnight Trading

Soybean and grain futures were lower overnight on some favorable weather in parts of South America and slack demand for U.S. supplies.

In Brazil, the world’s largest exporter of soybeans, rains this week favored parts of Mato Grosso, Parana, and Rio Grande do Sul, said Donald Keeney, an agricultural meteorologist with Maxar.

Rains are expected to favor several growing states including Goias, Minas, Sao Paulo, and Santa Catarina, he said in a note to clients.

“Dryness is stressing safrinha corn in east-central areas, but improvements are expected there by next week,” Keeney said.

In Argentina, precipitation favored Santa Fe, south Entre Rios, and Buenos Aires, the forecaster said, though it’s expected to be dry through the weekend.

On the demand front, sales of corn and soybeans fell sharply week-to-week, the U.S. Department of Agriculture said in a report yesterday.

Prices, however, are being underpinned by Russia’s continued attacks on Ukraine.

The war in Ukraine has been going on for a month now with no end in sight. The countries swapped prisoners for the first time since Russia first attacked Ukraine, with the sides exchanging 10 prisoners each, Ukraine Deputy Prime Minister Iryna Vereshchuk said in a Facebook post.

In a separate exchange, almost a dozen Russian civilian seamen were exchanged for 19 Ukrainian civilian sailors, according to media reports.

Soybean futures for delivery fell 8¢ to $16.92¾ a bushel overnight on the Chicago Board of Trade. Soymeal was up $1 to $486.90 a short ton, and soybean oil futures lost 0.38¢ to 73.91¢ a pound.

Wheat for May delivery dropped 7¢ to $10.78½ a bushel while Kansas City futures fell 6½¢ to $10.88½ a bushel.

Corn futures for May delivery were down 1¾¢ to $7.46½ a bushel. 

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2. Weekly Export Sales of Corn and Beans Decline

Sales of corn and beans to overseas buyers plunged in the seven days that ended on March 17 while wheat sales were modestly higher week-to-week, according to the USDA.

Corn sales last week totaled 979,500 metric tons, down 47% from the previous week and 29% from the prior five-week average, the government said in a report.

Mexico was the big buyer at 265,300 metric tons, followed by Colombia at 153,900 tons and South Korea at 127,200 tons. An unnamed country bought 92,600 metric tons from U.S. supplies and Israel purchased 69,700 tons.

Exports for the week totaled 1.49 million metric tons, the agency said.

Soybean sales came in at 412,200 metric tons, down 67% from the previous week and 70% from the average, the USDA said.

Algeria purchased 84,000 metric tons, Egypt took 76,500 tons, Mexico was in for 75,100 tons, Indonesia purchased 66,200 tons, and China bought only 32,500 tons.

The total would have been higher but unknown destinations nixed shipments of 57,700 tons, the agency said.

Exports last week totaled 549,200 metric tons, down 23% week-to-week.

Wheat sales last week were reported at 155,700 metric tons, the USDA said. That’s up 7% from the previous week but down 51% from the average, the agency said.

Japan took 109,800 metric tons, Taiwan bought 50,100 tons, Venezuela was in for 31,500 metric tons, Mexico bought 29,900 tons, and Chile purchased 12,000 tons.

Nigeria canceled cargoes of 35,700 metric tons, an unnamed country nixed shipments of 31,400 tons, and Colombia canceled an order for 14,500 metric tons.

Sales for delivery in the 2022-2023 marketing year that starts on June 1 totaled 367,300 metric tons.

Wheat exports for the week were reported at 366,100 metric tons, up 47% from the previous week, the USDA said in its report.

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3. Red-Flag Warnings Issued For Much of South Dakota, Nebraska

Much of South Dakota and Nebraska are facing red-flag warnings amid strong winds and low relative humidity, according to the National Weather Service.

In central and eastern South Dakota, winds will gust as high as 50 mph and be sustained up to 30 mph, the NWS said in a report early this morning.

Relative humidity will fall to as low as 15%.

“Gusty winds and very low humidity this afternoon and early evening will produce critical fire weather conditions across many areas to the east of the Black Hills into central South Dakota,” the NWS said.

In central Nebraska, northwest winds are expected to be sustained from 20 to 30 mph with gusts of up to 45 mph, the agency said.

Humidity is forecast as low as 13%.

The red-flag warning is in effect in the area from noon to 9 p.m., the NWS said.

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