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3 Big Things Today, November 17, 2021

Soybeans, Grains Higher Overnight; Vietnam to Eliminate Tariff on U.S. Wheat.

1. Soybeans and Grains Rise in Overnight Trading

Soybeans and grains were modestly higher overnight on continued signs of demand for U.S. agricultural products.

Exporters reported sales of 161,000 metric tons of soybeans to an unnamed country and 270,000 tons of corn to Mexico, all for delivery in the 2021-2022 marketing year that started on Sept. 1, the U.S. Department of Agriculture said in a report yesterday.

That follows sales of 264,000 metric tons of soybeans to an unknown buyer and 198,200 tons of corn to Mexico, which were announced Monday. Exporters reported on Friday sales of 256,930 metric tons of soybeans to unknown destinations.

Global demand for U.S. products has shown signs of improving in recent days.

Vietnam will eliminate its import duty on U.S. wheat near the end of the year, according to a statement from two industry groups.

Russia, the world’s largest shipper of wheat, may further restrict exports by imposing limits and increasing export taxes, according to the country’s Ministry of Agriculture.

Keeping a lid on prices, however, are expectations for lower year-over-year exports of beans and grains.

U.S. soybean exports were forecast earlier this month by the USDA at 2.05 billion bushels, down from 2.265 billion a year earlier. Corn shipments are pegged at 2.5 billion bushels, down from 2.753 billion last year.

Wheat exports are seen at 860 million bushels, down from 992 million a year earlier, the government said.

Soybean futures for November delivery rose 3¢ to $12.54¼ a bushel overnight on the Chicago Board of Trade. Soymeal gained $1.20 to $363.40 a short ton, while soy oil added 0.25¢ to 59.27¢ a pound.

Corn futures for December delivery were up 1½¢ at $5.79 a bushel.

Wheat futures for December delivery gained 3¾¢ to $8.23¾ a bushel, while Kansas City futures rose 2¢ to $8.24¾ a bushel.

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2. Vietnam Eliminates Tariff on U.S. Wheat Starting Dec. 30

Vietnam will eliminate its 3% tariff on U.S. wheat starting on Dec. 30, according to a statement from U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG).

The tariff was reduced from 5% to 3% in July 2020.

“U.S. wheat exports to Vietnam’s growing market are much slower so far this year because of short supplies and rising prices, so eliminating this tariff is very important for growers like me,” USW Chair Darren Padget said in the statement.

Vietnam is expected to import 3.65 million metric tons of soybeans in the 2021-2022 marketing year, according to the USDA’s Foreign Agricultural Service.

That’s down from 3.9 million metric tons a year earlier.

The southeast Asian country imported a record 5.535 million tons in the 2016-2017 marketing year, the agency said.

Wheat consumption in Vietnam is now forecast at 3.65 million metric tons this year, up from a prior estimate due to increased feed wheat consumption, a report from the USDA’s Global Agricultural Information Network in October.

NAWG President Dave Milligan said the industry groups will continue working to improve access to global markets for U.S. wheat.

“With about half the wheat we produce available for export each year, we depend on increasing access to markets like Vietnam,” he said in the statement.

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3. High-Wind Warnings Issued in Parts of the Dakotas

Strong winds are a problem in the Dakotas this morning as warnings and lake advisories are in effect, according to the National Weather Service.

Winds are forecast to be sustained at around 40 mph in parts of western and central North Dakota throughout the day with gusts of up to 65 mph, the NWS said in a report early this morning.

“Tree limbs could be blown down and a few power outages may occur,” the agency said. “Travel will be difficult, especially for high-profile vehicles.”

In north-central Kansas, meanwhile, a red-flag warning has been issued starting at 11 a.m. local time today and lasting until 5 p.m.

Winds will blow from 15 to 20 mph with gusts of up to 35 mph, and relative humidity will fall to 15%, the NWS said.

Conditions will be ripe for wildfires and outdoor burning is not recommended.  

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