3 Big Things Today, March 5, 2021
1. Soybeans and Corn Rise Overnight on South American Weather
Soybeans and corn were higher on weather concerns in South America.
While the focus in recent weeks has been on excessive precipitation in Brazil, the world’s largest exporter of soybeans, extremely dry weather in Argentina also is worrying.
“Notable deficits encompass two-thirds of Argentina, but severe yield losses focus on up to 30% (of) soy in the next week,” Commodity Weather Group said in a report.
Temperatures will be in the 80s and 90s (F.) over the weekend, but they could reach higher next week, CWG said.
Soybean production could be lost if it doesn’t rain in some areas soon, the Buenos Aires Grain Exchange said in a report released on Thursday.
Some potential hope lies on the horizon and there’s a chance that there may be some relief at some point in the next six to 15 days, depending on timing and placement of any showers, Commodity Weather Group said.
In Brazil, rainfall will continue to slow fieldwork, the forecaster said.
READ MORE: Corn, soybean prices move higher Friday
Still, capping gains is slack demand for U.S. supplies. The only report of a sale of any U.S. agricultural product of 100,000 metric tons or more was on March 2 when exporters said Japan bought 175,000 metric tons of corn.
Prior to that, the last reported sale of 100,000 metric tons or more was on Feb. 12, government data show.
Exporters haven’t reported soybean sales of 100,000 metric tons or more since Jan. 29, according to the U.S. Department of Agriculture.
Soybean futures for May delivery rose 1¢ to $14.11½ a bushel overnight on the Chicago Board of Trade. Soymeal was down $1.60 to $415 a short ton, and soy oil rose 0.29¢ to 51¢ a pound.
Corn added 5¾¢ to $5.38¼ a bushel.
Wheat futures for May delivery lost 2¾¢ to $6.48¼ a bushel, while Kansas City futures fell 3¼¢ to $6.17¾ a bushel.**
2. Weekly Export Sales of Corn Drop to Fresh Marketing-Year Low
Export sales of corn hit a fresh marketing-year low last week while soybean and wheat sales improved, according to the USDA.
Corn sales to overseas buyers dropped to 115,900 metric tons in the seven days that ended on Feb. 25, the agency said in a report. That’s down 74% from the previous week and 96% from the prior four-week average.
Sales actually were fairly robust with China buying 1.05 million metric tons of the grain, followed by Mexico at 181,900 tons and Saudi Arabia at 129,300 tons. Japan took 108,600 tons and South Korea bought 107,800 tons.
Unnamed buyers, however, canceled shipments totaling 1.76 million metric tons, the USDA said.
Exports last week, on the other hand, totaled 2.01 million metric tons, a marketing-year high and up 69% week-to-week.
Soybean sales totaled 334,000 metric tons, up noticeably from the previous week but down 33% from the four-week average, the government said.
Mexico was the big buyer at 139,700 metric tons, Japan took 121,800 tons, the Netherlands bought 68,100 tons, and Bangladesh purchased 56,000 tons. The total would have been higher, but unknown destinations nixed cargoes totaling 351,400 tons.
Exports rose 18% to 1.16 million metric tons last week, the USDA said.
Wheat sales were reported at 219,200 metric tons, a 31% increase from the previous week but a 51% decrease from the four-week average.
Mexico purchased 69,300 tons from U.S. supplies, China bought 65,900 tons, Nigeria was in for 56,000 tons, Canada took 31,600 tons, and Japan bought 30,600 tons.
An unnamed country canceled shipments for 55,000 tons, and Chile nixed cargoes of 8,000 tons.
Exports totaled 407,500 tons, up 4% from the previous week, the USDA said in its report.
3. Fire Dangers High in Central Nebraska and Southern Plains This Weekend
A fire-weather watch has been issued for much of central Nebraska due to high winds and low humidity, according to the National Weather Service.
The warning runs from tomorrow afternoon through tomorrow evening due to the dry and unseasonably warm weather, the NWS said in a report early this morning.
Winds are expected to be sustained from 15 to 25 mph with gusts of up to 35 mph. Relative humidity in the area is forecast as low as 14%.
“Any fire start will be capable of spreading rapidly and exhibit erratic behavior,” the agency said.
The risk of wildfire also is high in parts of the Southern Plains where hard-red winter wheat is overwintering. The dry weather in the region is expected to stick around for a while.
“Elevated fire weather conditions are possible across portions of the combined Panhandles Saturday, Sunday, Monday, and Thursday,” the NWS said. “Elevated to critical fire weather will be possible across portions of the combined Oklahoma and Texas Panhandles Tuesday and Wednesday.”