3 Big Things Today, November 19, 2021
1. Soybeans, Grains Lower in Overnight Trading
Soybean futures were lower in overnight trading as investors pull back ahead of Thanksgiving week.
Investors ran prices up in recent weeks amid a flurry of export activity and indications of short global supplies of wheat.
The U.S. Department of Agriculture reported sales to overseas buyers of soybeans and corn for four straight days through Wednesday this week, an indication that global buyers are seeking U.S. inventories.
Wheat futures jumped before today amid global purchases and concerns about exports from Russia, the world's largest shipper of the grain.
Russia has imposed export taxes that have driven up prices, and the government may impose further export levies or restrictions that could push buyers to the U.S.
Wheat prices in Europe jumped to the highest for a second-month contract since 2007.
Soybean futures for November delivery fell 8¢ to $12.57 ¼ a bushel overnight on the Chicago Board of Trade. Soymeal lost $1.50 to $362.10 a short ton, while soy oil declined 0.67¢ to 58.51¢ a pound.
Corn futures for December delivery were down 4 3/4¢ at $5.74 ½ a bushel.
Wheat futures for December delivery fell 6¢ to $8.24 ¾ a bushel, while Kansas City futures lost 4 1/4¢ to $8.26 ¼ a bushel.**
2. Export Sales of Corn Lower While Beans Improve
Export sales of corn were lower while soybean and wheat sales rose in the seven days that ended on Nov. 11, according to the USDA.
Corn sales last week totaled 904,600 metric tons, down 15% from the previous week and 19% from the prior four-week average, the agency said in a report.
Canada was the big buyer at 230,000 metric tons, followed by Mexico at 210,400 tons and Japan at 201,600 tons. Colombia took 69,300 metric tons and Guatemala bought 47,200 tons.
Exports for the week jumped to a marketing-year high of 1.17 million metric tons last week, up 63% from the previous week.
Soybean sales, meanwhile, improved to 1.14 million metric tons, a 13% weekly increase but a 20% drop from the average, the USDA said.
China bought 727,500 metric tons, the Netherlands purchased 133,000 tons, Spain took 113,700 tons, Thailand was in for 74,600 tons and an unnamed buyer purchased 60,100 tons.
Exports for the week came in at 2.34 million metric tons, down 36% from a week earlier.
Wheat sales totaled 399,100 metric tons, up 40% from the previous week and 21% from the average, the government said.
Nigeria bought 84,200 metric tons, Vietnam was in for 66,000 tons, Japan took 62,500 tons, the Philippines bought 61,500 tons and Mexico purchased 39,200 tons.
Exports for the week were reported at 310,900 metric tons, a 15% week-to-week increase, the USDA said in its report.
3. Dry Weather Follows Freeze in Southern Plains
Extremely dry weather is expected in much of the southern Plains today after temperatures warm above freezing this morning, according to the National Weather Service.
Temperatures overnight were forecast to fall into the lower-20s, the NWS said.
A freeze warning in the area is expected to end at 9 a.m.
"Near critical fire weather conditions are expected late this morning and this afternoon across western Oklahoma due to strong southerly winds and low humidity," the agency said.
In eastern Iowa, meanwhile, windy conditions are expected with gusts of 30 to 40 miles an hour heading into the weekend, the NWS said.
Strong winds will continue through the weekend with gusts of 40 to 45 miles an hour expected on Sunday.