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3 Big Things Today, May 6, 2022

Soybeans, Grains Lower Overnight; Weekly Export Sales of Corn Decline.

1. Soybeans, Grains Lower in Overnight Trading

Soybean and grain futures were all lower in overnight trading on another round of profit-taking as some investors sell contracts and liquidate positions after the recent run-up in prices.

Rainy weather in the U.S. has put soybean and corn planting behind their normal pace, and extremely dry weather in the U.S. southern Plains has left hard-red winter wheat fields parched, driving up prices.

As much as six times the normal amount of rain has fallen in the past week from North Dakota south into northern Kansas, according to the National Weather Service’s precipitation page.

Excessive rain also has fallen in parts of southeastern Kansas, northeastern Oklahoma, much of Missouri, and northwestern Arkansas, the NWS maps show.

Some 8% of the U.S. soybean crop was in the ground at the start of the week, behind the prior five-year average of 13%, the Department of Agriculture said in a report.

Only 14% of corn was in the ground as of Sunday, well behind the average of 33% for this time of the year, the USDA said.

It’s the opposite problem in parts of southwestern Kansas and the Oklahoma and Texas panhandles where little to no rain has fallen in the past 14 days.

About 27% of the U.S. winter-wheat crop was in good or excellent condition at the start of the week, unchanged from the previous week but down from 48% at this point last year, the government said.

Still, investors have backed off and seem to be taking a risk-off approach heading into the weekend.

Soybean futures for July delivery plunged 18¢ to $16.29 a bushel overnight on the Chicago Board of Trade. Soymeal lost $1.30 to $418.60 a short ton, while soybean oil futures fell 1.78¢ to 80.07¢ a pound.

Corn futures were down 10¢ to $7.87½ a bushel.

Wheat for May delivery lost 10¢ to $10.96½ a bushel while Kansas City futures declined 11¾¢ to $11.65¼ a bushel.

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2. Corn Sales to Overseas Buyers Fall, Wheat and Bean Sales Higher

Export sales of corn were lower in the seven days that ended on April 28 while wheat and bean sales rose, according to the USDA.

Corn sales to overseas buyers were reported at 782,500 metric tons, down 10% from the previous week and 19% from the prior four-week average, the agency said in a report.

China was the big buyer at 465,900 metric tons, followed by Colombia at 191,600 tons and Japan at 165,800 tons. Spain took 157,100 metric tons and Taiwan bought 82,900 tons.

The total would have been higher but an unnamed country canceled cargoes of 375,500 metric tons, the government said.

Sales for the 2022-2023 marketing year that starts on September 1 came in at 737,900 metric tons, and exports for the week jumped 22% to a marketing-year high of 1.9 million metric tons, the USDA said.

Wheat sales, meanwhile, jumped to 118,800 metric tons, a noticeable gain from the previous week and up 53% from the average for this time of year.

Mexico purchased 88,400 metric tons, the Philippines was in for 58,300 tons, El Salvador bought 10,400 tons, South Korea took 5,000 tons, and Colombia was in for 3,300 tons. Nigeria nixed shipments of 46,600 tons and Guatemala canceled cargoes of 7,200 tons.

For the 2022-2023 marketing year that starts on June 1, sales totaled 42,400 metric tons. Exports for the week totaled 377,400 metric tons, up 53% week-to-week, the agency said.

Soybean sales came in at 734,600 metric tons, up 53% from the previous week and 28% from the average, the USDA said.

An unnamed buyer took 316,700 metric tons, China was in for 200,800 tons, Egypt purchased 68,800 tons, Mexico bought 63,600 tons, and Indonesia was in for 32,900 tons from U.S. supplies.

Sales for delivery in the next marketing year totaled 407,000 metric tons, and exports fell 21% week-to-week to 563,700 metric tons, the government said in its report.

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3. Flood Warnings Issued For Much of Southwestern Missouri

Flood warnings remain in effect in much of southwestern Missouri and parts of Kansas, Oklahoma, and Arkansas, according to the National Weather Service.

In southwestern Missouri, several rivers are over their banks and minor flooding is occurring, the NWS said in a report early this morning.

The James River at Galena was at 23.7 feet this morning, well above flood stage of 15 feet. The river will top out at 24.9 feet – just under the record set in 1985 of 25.3 feet – this afternoon before falling back, the agency said.

“Showers and thunderstorms will continue today into tonight as a low pressure system moves across the region,” the NWS said.

Farther north, rainfall is expected in much of northern Indiana into the weekend.

“Rain will continue through today and diminish overnight,” the agency said. “A thunderstorm is possible, mainly south of US 30 this afternoon and evening.”

Flooding is possible due to the precipitation, the NWS said.

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