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3 Big Things Today, May 1, 2020

Wheat Futures Drop Overnight; Export Sales Higher Across the Board.

1. Wheat Futures Drop on Positive Weather Forecasts

Wheat futures dropped in overnight trading amid positive weather developments in many growing areas.

Rain fell in growing areas in the so-called Black Sea region (a major production area), and more precipitation is forecast through the weekend, forecaster Maxar said in a report. Rainfall in the area should improve crop prospects.

Precipitation also fell in parts of southern UK, northern France, and west-central Germany and should spread throughout European growing regions this weekend, the forecaster said.

Australian wheat-growing areas including South Australia, Victoria, New South Wales, and south Queensland should get much-needed rain.

In the U.S., some rains are expected in northern Colorado and northern Kansas on Saturday and Sunday, Maxar said.

Corn and bean planting may accelerate, as the Corn Belt is expected to be mostly dry until later in the weekend with only the southern Midwest potentially seeing precipitation. Some rain may slow seeding in the Delta on Tuesday, Commodity Weather Group said on Thursday.

Wheat futures for May delivery dropped 5½¢ to $5.18¾ a bushel overnight on the Chicago Board of Trade, and Kansas City futures fell 6¼¢ to $4.81¾ a bushel.

Corn futures for May delivery fell 3¢ to $3.17 a bushel.

Soybean futures dropped 6¢ to $8.49¼ a bushel overnight, while soy meal declined $1.90 to $293.20 a short ton, and soy oil was off by 0.35¢ to 26.25¢ a pound. 


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2. Weekly Export Sales of Corn, Beans, and Wheat All Surge

Export sales were up across the board as corn, beans, and wheat all jumped week to week, according to the USDA.

Corn sales surged to 1.36 million metric tons, up 87% from the previous week and 19% from the prior four-week average, the USDA said in a report.

Mexico accounted for the bulk of the sales, taking 544,700 metric tons. Japan was in for 199,000 metric tons, South Korea took 196,900 tons, Israel purchased 154,000 tons, and Colombia bought 136,600 tons, the agency said. An unknown country canceled shipments of 83,000 tons.

For the 2020-2021 marketing year, net sales totaled 339,000 tons with Mexico purchasing 288,200 tons, Jamaica taking 24,000 tons, and Japan buying 21,300 tons.

Soybean sales jumped to 1.08 million metric tons from 344,900 tons a week earlier, the government said in its report.

China was a strong buyer at 618,100 metric tons, Egypt was in for 194,000 tons, Indonesia purchased 66,200 tons, Mexico bought 42,900 tons, and Morocco took 28,500 tons.

Net sales for 2020-2021 totaled 105,000 metric tons with Mexico buying almost all of it, the USDA said.

Wheat sales jumped 91% week to week to 467,700 metric tons, which was up “noticeably” from the prior four-week average, the agency said.

Taiwan bought 150,000 metric tons from U.S. supplies, the Philippines took 110,200 tons, Brazil was in for 69,000 tons, Japan purchased 59,100 tons, and Singapore bought 44,600 tons. Unknown customers canceled cargoes of 58,500 tons, and Guatemala nixed a shipment of 13,800 tons.

For the 2020 marketing year that starts on June 1, sales totaled 155,100 tons as Taiwan bought 60,100 tons, Japan was in for 32,500 tons, Colombia purchased 26,000 tons, and an unnamed country bought 24,900 tons, the USDA said.


3. Record-High Temperatures Forecast For Parts of Texas and Oklahoma Panhandles

Record-high temperatures are forecast for the Texas and Oklahoma panhandles where hard red winter wheat is maturing today, according to the National Weather Service.

Temperatures in Amarillo, Texas, are expected to hit 96˚F., Borger, Texas, may rise to 97˚F., and Dalhart, Texas, could reach 94˚F., the NWS said in a report. Those would all be records if realized.

In Boise City, Oklahoma, temperatures are forecast to reach 91˚F., and in Guymon, Oklahoma, they are expected to hit 93˚F.

Farther north, thunderstorms are forecast in parts of western Nebraska and northeastern Colorado, the agency said.

Quarter-size hail is expected along with strong winds with gusts of up to 50 mph. The NWS also said there are chances for more storms Saturday through Monday, though the threat of severe weather is low at this point.

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