3 Big Things Today, March 8
1. Soybeans Lower Overnight as Price of Palm Oil Plunges
Soybeans were lower in overnight trading as the price of palm oil, a competing cooking oil, declined to the lowest level in more than a year.
Palm oil prices plunged as Indian importers may cancel shipments due to an increase in import duties last week. Prices have dropped more than 4% in the past week after India raised import taxes on the oil to the highest level in more than 10 years, Reuters reported.
Dry weather continues in Argentina, which will help underpin prices, but declining palm oil will weigh.
Corn and wheat were modestly lower ahead of today's World Agricultural Supply and Demand Estimates Report from the USDA.
Soybean futures for May delivery fell 6¢ to $10.59¼ a bushel overnight on the Chicago Board of Trade. Soymeal lost $2.70 to $380.80 a short ton, and soy oil declined 0.16¢ to 31.94¢ a pound.
Corn futures for May delivery dropped ½¢ to $3.86¾ a bushel overnight.
Wheat for May delivery fell 1¼¢ to $4.96 a bushel overnight, while Kansas City futures lost 2¢ to $5.32¼ a bushel.
2. USDA Likely to Lower Forecasts For Corn, Soybean Inventories in Thursday’s WASDE
The USDA likely will lower its global forecast for corn stockpiles in its monthly World Agricultural Supply and Demand Estimates (WASDE) Report on Thursday amid declining , according to analyst estimates.
World carryout likely will be pegged at about 200 million metric tons, down from last month’s forecast for 203.9 million tons, analysts said.
U.S. ending stocks are expected at around 2.294 billion bushels, down from the February outlook for 2.352 billion and the prior year’s 2.295 billion.
Soybeans in storage worldwide also are pegged lower month to month by analysts.
Global soybean inventories in the 2017/2018 marketing year likely will come in around 95 million metric tons, down from last month’s projection for 98.1 million, analysts said.
U.S. carryout is pegged at 531 million bushels, up from the February forecast for 530 million bushels and well above the prior year’s 301 million.
3. Flooding in Arkansas, Mississippi, Tennessee Continues With More Rain Forecast
Flooding in Arkansas, Mississippi, and Tennessee may worsen, as another round of heavy rainfall is expected in the region this weekend.
As much as 3 inches of rain may fall in the area on Sunday, the National Weather Service said in a report early Thursday. Rivers and tributaries are already over their banks after excessive rain and runoff the past two weeks.
The storm that blasted the Midwest earlier this week is now hitting the East Coast. Up to 2 feet of snow may fall in parts of Maine. Gusty winds are also expected, which along with heavy, wet snow may cause power lines and trees to fall, the agency said.
Travel is not recommended.