3 Big Things Today, November 16, 2021
1. Wheat Futures Drop in Overnight Trading
Wheat futures were lower in overnight trading as the condition of the U.S. winter crop unexpectedly improved.
About 46% of winter wheat was in good or excellent condition as of Sunday, up from 45% a week earlier and on par with ratings a year earlier, according to the U.S. Department of Agriculture.
Analysts polled by Reuters were expecting no change to the ratings.
In Kansas, the biggest producer of the variety, 64% was good or excellent.
About 94% of the crop was planted at the start of the week, up from 91% a week earlier and unchanged from prior five-year average, the USDA said.
Some 81% of U.S. winter wheat has emerged from the ground, up from 74% last week and the average of 83%.
The corn and soybean harvest roll on, pressuring prices.
About 91% of the U.S. corn crop was in the bin at the start of the week, up from 84% a week earlier and ahead of the prior five-year average of 86%, the Ag Department said.
Soybeans were 92% harvested, up from 87% last week but behind the average of 93% for this time of the year.
Underpinning prices, however, are signs of demand for U.S. supplies.
Exporters reported sales of 264,000 metric tons of soybeans to an unnamed buyer and 198,200 metric tons of corn to Mexico, the USDA said yesterday.
Wheat futures for December delivery fell 4½¢ to $8.32¼ a bushel overnight on the Chicago Board of Trade, while Kansas City futures lost 3¼¢ to $8.35¼ a bushel.
Corn futures for December delivery were down ¾¢ at $5.83¼ a bushel.
Soybean futures for November delivery fell 2¼¢ to $12.55 a bushel. Soymeal gained $1.60 to $368.10 a short ton, while soy oil added 0.84¢ to 58.85¢ a pound.**
2. Grain Inspections For Export Improve Week-to-Week
Inspections of corn and wheat for overseas delivery rose week-to-week while soybean assessments declined, according to the USDA.
The government inspected 855,698 metric tons of corn in the seven days that ended on Nov. 11, up from 649,023 tons a week earlier.
That was, however, down slightly from the 862,235 metric tons assessed during the same week a year earlier, the agency said in a report.
Wheat assessments last week totaled 388,743 metric tons, up from 251,452 tons the previous week and above the 333,917 tons examined at the same point in 2020.
Soybean inspections were reported at 2.07 million metric tons and, while still lofty, came in well behind the 2.91 million tons examined the previous week, the agency said.
During the same week last year, the USDA inspected 2.53 million metric tons of soybeans for offshore delivery.
Since the start of the marketing year on Sept. 1, the agency has inspected 6.98 million metric tons of corn for export, down from 8.47 million tons during the same time frame a year earlier, the government said.
Soybean assessments since the beginning of September are now at 16.2 million metric tons, behind the 22.6 million tons examined during the same period last year.
Wheat inspections since the start of the grain’s marketing year on June now stand at 10.3 million metric tons, down from 12 million tons at the same point in 2020, the USDA said in its report.
3. Red-Flag Warnings Issued in Several States Amid Dry Weather
A red-flag warning has been issued amid extremely dry weather in much of Nebraska and parts of South Dakota, according to the National Weather Service.
Winds are forecast to be sustained from 20 to 30 mph with gusts of up to 45 mph in parts of northern Nebraska, the NWS said in a report early this morning. Relative humidity is expected at around 18%.
The warning is in effect from 11 a.m. Central Time through 6 p.m. this evening.
Farther north in much of North Dakota, high-wind warnings are in effect from noon to midnight today as sustained winds are pegged at 30 mph this afternoon. Gusts are forecast at about 50 mph.
Late tonight and tomorrow, winds will reach 40 mph with gusts of up to 60 mph, the NWS said.
In the Oklahoma and Texas panhandles, meanwhile, red-flag warnings remain in effect through this afternoon.
Low temperatures tomorrow night are expected to fall into the mid-20s (°F.) in much of the Texas panhandle, the NWS said.