3 Big Things Today, November 13
1. Grains, Soybeans Lower Overnight as Harvests Nears Finish, Stronger Dollar
Grains and soybeans were lower overnight as the harvest nears completion and the dollar rises.
Growers should be wrapping up the soybean harvest soon and continue to make progress on corn collection due to dry weather in much of the Corn Belt over the weekend.
The dollar, meanwhile, isn’t cooperating with commodities. The greenback is up 0.2% in overnight trading after earlier this month nearing a four-month high. Its value had dropped from July through September but has been climbing – albeit not steadily – since.
A stronger dollar hurts demand for U.S. supplies because it reduces purchasing power for overseas buyers.
Wheat futures declined 5¼¢ to $4.26¼ a bushel overnight on the Chicago Board of Trade. Kansas City futures dropped 5½¢ to $4.27¾ a bushel.
Corn futures for December delivery lost 1¢ to $3.42½ a bushel overnight.
Soybean futures for January delivery declined 2½¢ to $9.84½ a bushel overnight. Soy meal was down 30¢ to $314.20 a short ton, and soy oil fell 0.16¢ to 34.65¢ a pound.
2. Trump’s Trade Mission to Asia Has Ups, Downs as Soybean Deals Signed, TPP Back on Without U.S.
President Trump’s trade mission to Asia has had its wins but also had seen some losses.
The good news is his foray to China helped land a couple of letters-of-intent from the country to buy an additional 12 million metric tons of soybeans in the 2017-2018 marketing year valued at around $5 billion.
The agreements, to be sure, are nonbinding and are among a series of trade deals announced during the president’s visit to Beijing. The first agreement was reportedly between the China Chamber of Commerce on Foodstuffs and Native Produce for $3.4 billion, and the second is between ADM and COFCO for about $1.6 billion.
Some traders have said the deal is a mere formality and likely won’t affect markets.
Eleven countries on the Pacific Rim late last week agreed to keep the Trans-Pacific Partnership, a trade agreement that the U.S. backed out of earlier this year, in what some see as a rebuke to Trump’s so-called America First Policy.
The announcement that the countries formed the agreement came as Trump neared the end of his trip to Asia. The countries that signed the agreement said they agreed on its “core elements.”
One administration official told the Washington Post that the new TPP deal doesn’t mean the U.S. will be left behind in Asia and that the president is involved in trade discussions with several partners in the region.
3. Foggy Morning Kicks Off Week, Seven-Day Forecast Calls For Chances of Rainfall
It’s a foggy morning in parts of several Midwestern states this morning, with freezing fog possible in some areas that will make roads slick, according to the National Weather Service.
The weather was dry for most of the Midwest over the weekend, but the seven-day forecast from the NWS is showing increased chances of rainfall from Minnesota, Iowa, and Missouri east. That likely will keep growers who still have crops left in the field from finishing the harvest.
Temperatures, as expected for this time of year, will be cold in the Northern Plains and Midwest while rain may fall today in parts of eastern Kansas, Oklahoma, and eastern Texas, according to NWS maps.