3 Big Things Today, May 12, 2020

Wheat Futures Lower Overnight; Weekly Export Inspections of Soybeans Improve

1. Wheat Futures Lower in Overnight Trading on Favorable Weather

Wheat futures were lower overnight on favorable growing weather globally, while corn and soybeans were little changed.

Rains are expected in parts of the U.S. Southern Plains in the next two days and in the 11- to 15-day outlook, according to Commodity Weather Group.

That should ease the short-term stress to much of the hard red winter Wheat Belt, the forecaster said in a report.

Conditions for seeding spring wheat in Canada are expected to improve the next six to 15 days, but there likely will still be slowdowns because of cold and rainy weather, CWG said.

Internationally, rainfall will favor grains in Ukraine, and precipitation is expected to boost prospects in Europe.

Australian wheat and canola areas will be drier this week, which may slow germination in about a quarter of the country’s Wheat Belt, but some rain is forecast for next week, the forecaster said.

Wheat futures for July delivery fell 3½¢ to $5.13¾ a bushel overnight on the Chicago Board of Trade, and Kansas City futures lost 2½¢ to $4.72½ a bushel.

Corn futures for May delivery fell ½¢ to $3.18 a bushel.

Soybean futures rose 1½¢ to $8.56½ a bushel overnight, while soymeal gained $1 to $291.30 a short ton, and soy oil lost 0.07¢ to 26.42¢ a pound. 

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2. Soybean Inspections Improve Week to Week, While Grain Assessments Decline

Inspections of soybeans for offshore delivery jumped week to week, while grain assessments declined, according to the USDA.

Soybean inspections in the seven days that ended on May 7 totaled 496,498 metric tons, up from 380,981 tons the previous week, the agency said in a report. That’s still down from the 546,866 tons examined during the same week a year earlier.

Corn assessments were reported at 1.33 million metric tons, down from 1.35 million tons a week earlier, but up from the 1 million tons inspected during the same week in 2019.

Examinations of wheat for overseas delivery came in at 340,310 metric tons last week, down from 588,193 tons seven days earlier and 878,519 tons at the same point a year earlier, the USDA said.

Since the start of the marketing year on September 1, the government has assessed 34.4 million metric tons of soybeans for delivery to offshore buyers. That’s up from the 32.7 million tons inspected during the same period a year earlier.

Corn assessments since the start of September now stand at 25 million metric tons, well below the 36.6 million tons assessed during the same time frame last year.

Wheat inspections since the start of the grain’s marketing year on June 1 were reported at 23.4 million metric tons, just ahead of the 22.8 million tons examined during the same period a year earlier, the USDA said in its report.

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3. Freeze Warnings and Frost Advisories Remain in Effect in Parts of the Midwest

Cold weather is still present in parts of the northern and eastern Midwest with freeze warnings and frost advisories in effect, according to the National Weather Service.

In southern Minnesota and southern Wisconsin and counties in northern Iowa, temperatures overnight fell into the mid-20s, the NWS said in a report earlier this morning.  The freeze warning in the area is in effect until 9 a.m. local time.

In southern Michigan, temperatures dropped to as low as 27˚F. overnight, the agency said. A freeze warning is in effect, also until 9 a.m. local time.

In parts of northeastern Iowa and northern Illinois, a frost advisory is in effect this morning with temperatures in the low to mid-30s, the NWS said. A frost advisory also is in place for much of the state of Indiana, where temperatures will hover in the low 30s.

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