3 Big Things Today, May 27, 2022
1. Grain, Soybean Futures Little Changed in Overnight Trading
Wheat futures were mixed and corn and beans were little changed heading into the Memorial Day holiday weekend.
Investors are keeping a close eye on the weather in the U.S. southern Plains where hard-red winter wheat is growing.
As much as six times the normal amount of precipitation has fallen in the area in the past week, according to the National Weather Service's precipitation page.
Drier weather, however, is on the way to parts of southwestern Kansas this weekend.
The weekly U.S. Drought Monitor released yesterday showed a slight improvement in Kansas, the biggest U.S. producer of winter wheat, as 65.3% of the state was suffering from drought conditions, down from 66.4% a week earlier.
Still, the percentage of the state seeing an exceptional drought -- the worst possible rating -- was unchanged at 4.1%, the monitor said.
Oklahoma, the second-largest producer of the variety, showed a marked improvement with 44% of the state seeing drought versus 54% a week earlier.
The percent suffering from exceptional drought dropped from 10% to just 2.9% this week, the monitor said.
Corn and beans were little changed as planting rolls on. At the start of the week, 72% of the U.S. corn crop was in the, behind the prior five-year average of 79%, but closer to normal that it has been for much of the season, according to data form the Department of Agriculture.
Fifty percent of soybeans were planted as of Sunday, just behind the normal 55% for this time of the year.
Spring-wheat planting was 49% finished this week, up from 39% last week but still well behind the average of 83%, the USDA said in a report.
Wheat for July delivery rose 1¢ to $11.44 ¼ a bushel overnight on the Chicago Board of Trade while Kansas City futures fell 6 1/4¢ to $12.22 ¼ a bushel.
Corn futures were down 1 1/2¢ to $7.63 ½ a bushel.
Soybean futures for July delivery lost 1 3/4¢ to $17.24 ¾ a bushel. Soymeal dropped $1 to $427.20 a short ton, while soybean oil futures fell 0.32¢ to 80.2¢ a pound.**
2. Corn Export Sales Drop to Marketing-Year Low
Corn sales in the week that ended on May 19 fell to a marketing-year low and soybean sales plunged, according to the U.S. Ag Department.
Sales of corn for delivery in the 2021-2022 marketing year totaled 151,600 metric tons, the USDA said.
That's down 63% from the previous week and 73% from the prior four-week average and the lowest since the marketing year started on Sept. 1.
Japan was the big buyer at 112,900 metric tons, Colombia took 55,900 tons, Venezuela purchased 20,600 tons, Canada was in for 20,100 tons and Mexico bought 17,200 tons, the agency said.
The total would've been higher but South Korea canceled cargoes of 57,000 metric tons, an unnamed country nixed shipments of 54,900 tons and China canceled on sales of 23,000 tons of U.S. corn.
Sales for delivery in the 2022-2023 marketing year were reported at 58,300 metric tons. Exports for the week rose 34% to 1.82 million metric tons, the USDA said.
Soybean sales dropped 63% week-to-week and were down 48% from the average, the government said.
Egypt took 132,600 tons, Japan purchased 123,600 tons, the Netherlands purchased 66,000 tons, Indonesia was in for 58,000 tons and Mexico bought 54,700 tons from U.S. supplies.
The purchases were offset by decreases as China canceled shipments of 108,400 tons and Taiwan nixed cargoes of 54,800 tons, the agency said.
For the 2022-2023 year, sales totaled 443,000 metric tons. Exports for the week fell 44% to 539,500 tons.
Wheat sales through May 19 ended up negative, which isn't that unusual considering the marketing year ends on May 31.
Exporters reported net sales reductions of 2,300 metric tons, down noticeably from the previous week and from the average, the government said.
Italy bought 20,000 metric tons, Nigeria was in for 8,200 tons, the Philippines bought 5,500 tons, Canada took 2,900 tons and Japan purchased 1,700 tons.
Mexico canceled shipments of 38,200 tons and an unnamed country nixed orders for 2,700 tons.
Sales for the 2022-2023 marketing year that starts on June 1, however, totaled 246,300 metric tons. Exports for the week were reported at 298,200 tons, down 14%, the USDA said in its report.
3. Strong Storms Expected in Parts of South Dakota This Weekend
Storms are expected to develop in parts of central and eastern South Dakota and parts of west-central Minnesota this afternoon, according to the National Weather Service.
The storms are expected to continue into the long weekend, the NWS said in a report early this morning.
Some are forecast to become severe tomorrow and Sunday with hail up to the size of a half dollar and wind gusts of up to 60 miles an hour are the main risks, the agency said.
In the southern Plains, meanwhile, a fire-weather watch has been issued in southwestern Kansas.
Winds are expected to be sustained from 20 to 30 miles an hour with gusts of up to 40 miles per hour, the NWS said. Relative humidity is pegged as low as 5%.