3 Big Things Today, March 9
1. Soybeans Lower Overnight After USDA Raises Stockpiles Outlook
Soybeans were lower in overnight trading after the USDA unexpectedly raised its forecast for domestic ending stockpiles.
About 555 million bushels of beans will be in storage at the end of the marketing year on August 31, the USDA said in a report yesterday, topping forecasts for 530 million bushels.
Export sales were lowered by 35 million bushels to 2.065 billion, though domestic crushing increased by 10 million bushels.
Wheat futures were also lower after the USDA raised its outlook for inventories at the end of the marketing year on May 31 to 1.034 billion bushels from 1.009 billion a month earlier.
Soybean futures for May delivery fell 10½¢ to $10.53½ a bushel overnight on the Chicago Board of Trade. Soymeal lost $4.80 to $378.60 a short ton, and soy oil declined 0.15¢ to 31.69¢ a pound.
Corn futures for May delivery dropped ¾¢ to $3.92¾ a bushel overnight.
Wheat for May delivery fell 4¾¢ to $4.94½ a bushel overnight, while Kansas City futures lost 6¼¢ to $5.27 a bushel.
2. Export Sales of Soybeans, Corn, Wheat Increase From Prior Week
Export sales of soybeans jumped week to week while corn sales rose, according to the USDA.
Soybean sales in the week that ended on March 1 totaled 2.51 million metric tons, the USDA said in a report. That’s up noticeably from the previous week and prior four-week average.
China was back as the top buy, taking 1.28 million tons of the total sales. Mexico was a distant second, buying 307,100 tons, unknown buyers took 272,000 tons, Egypt purchased 221,000 tons, and Bangladesh was in for 115,100 tons.
Sales for the 2018-2019 marketing year totaled 143,900 tons, the USDA said.
Corn sales were reported at 1.86 million tons, up 8% week to week and 6% from the average.
Unknown destinations were the largest buyers at 385,900 tons, followed by Japan at 376,800 tons, and Mexico at 366,200 tons. Taiwan bought 165,400 tons and Vietnam was in for 134,000 tons.
For the 2018-2019 marketing year that starts on September 1, sales totaled 70,300 tons, the government said.
Wheat sales jumped from the previous week to 391,500 metric tons, which is also up 28% from the four-week average.
An unknown buyer was the biggest customer at 113,500 tons, followed by South Korea at 71,500 tons, Japan at 66,100 tons, the Philippines at 52,000 tons, and Colombia at 34,400 tons. Mexico canceled a shipment for 10,200 tons.
3. Mid-South Flooding Continues With More Rain Expected This Weekend
Flood warnings continue this morning in parts of Arkansas, Mississippi, and Tennessee, which likely will worsen this weekend as more rainfall is expected.
“River flooding will continue over much of the mid-South, from heavy rains that occurred in late February,” the National Weather Service said in a report early Friday morning. “Locally heavy rainfall will lead to a marginal to slight risk of flash flooding over north Mississippi Saturday into early Sunday. Isolated strong thunderstorms will be possible Saturday, mainly over northwest Mississippi.”
The South can’t seem to catch a break, as an odd freeze warning is in effect for much of the Gulf Coast this morning. Almost all of Alabama, Georgia, and South Carolina are in under the warning, according to the NWS.
Temperatures are expected to fall into the upper 20s and lower 30s with frost widespread, the agency said.