3 Big Things Today, March 6
1. Wheat Falls on Profit Taking After Runup; Corn, Beans Little Changed
Wheat futures were lower in overnight trading as investors liquidate positions and book profits after yesterday’s run-up in prices.
Wheat futures finished almost 10¢ higher on Monday, causing some traders and hedgers to lock in profits. Some analysts and brokers put sell recommendation on wheat, adding to available supply, after the price increase.
Soybeans and corn were little changed as investors weigh the adverse weather in Argentina against slack year-over-year demand. The USDA’s export inspections report shows shipments to overseas buyers of both commodities are well behind the year-ago pace.
Wheat for May delivery dropped 3½¢ to $5.05¾ a bushel overnight on the Chicago Board of Trade, while Kansas City futures lost 3¼¢ to $5.42¼ a bushel.
Soybean futures for May delivery fell ½¢ to $10.77 a bushel overnight. Soymeal lost $1.70 to $391.50 a short ton, and soy oil rose 0.21¢ to 32.42¢ a pound.
Corn futures for May delivery fell ¼¢ to $3.87 a bushel overnight.
2. Export Inspections For Wheat, Soybeans Higher Last Week, Corn Declines
Export inspections for wheat and soybeans rose last week while those for corn declined, according to the USDA.
Inspections of wheat for overseas delivery jumped 43% to 400,937 metric tons in the week that ended on March 1, the USDA said in a report. The total was down from 583,534 metric tons during the same week in 2017.
Soybean inspections totaled 990,113 tons last week, up from 766,271 a week earlier and 947,713 tons a year earlier, according to the government.
Corn assessments last week totaled 947,642 metric tons, down from 1.32 million a week earlier and 1.45 million during the same week in 2017.
Totals for all three crops are still well behind the year-ago pace. Corn inspections since the start of the marketing year on September 1 totaled 18.9 million tons, down from 27.4 million a year earlier. Soybean assessments were reported at 38.8 million tons, well below the 44.4 million tons recorded during the same time frame the prior year.
Wheat inspections since the start of the grain’s marketing year on June 1 were at 18.2 million last week, down from 19.5 million a year earlier, the USDA said.
3. Blizzard Rages on in Much of South Dakota, Drought Continues in Southern Plains
A blizzard warning is still in effect for much of central South Dakota, while winter weather blasts the surrounding areas.
Another 3 inches of snow are expected today in much of the state with wind gusts of more than 45 mph, according to the National Weather Service. Travel is expected to be “extremely” dangerous, the NWS said in a report early Tuesday.
The areas surrounding the blizzard warning will see less accumulation and weaker winds, though conditions will not be conducive for travel.
Farther south, extremely dry weather has led to red-flag warnings in much of the Southern Plains. In the Oklahoma and Texas panhandles, winds are expected to be sustained at 30 mph.
Combined with relative humidity from 8% to 10%, conditions are ripe for wildfires, the NWS said. The red-flag warning stretches from eastern Colorado all the way to southeastern Missouri, maps show.