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3 Big Things Today, November 2

Soybeans Jump on China Optimism, Weekly Export Sales of Grains, Beans Higher.

1. Soybeans Jump Overnight on U.S.-China Trade Optimism

Soybean futures jumped in overnight trading on optimism that the ongoing trade dispute between the U.S. and China will finally come to an end.

President Trump tweeted yesterday that he had a fruitful conversation with China President Xi Jinping and that the two had discussed trade.

The U.S. and China have each imposed tariffs on tens of billions of dollars’ worth of the others’ goods, leading to severely reduced soybean shipments to the Asian nation. Large companies including Ford, Caterpillar, and John Deere have all said Trump’s tariffs have affected their businesses.

“Just had a long and very good conversation with President Xi Jinping of China,” Trump tweeted. “We talked about many subjects, with a heavy emphasis on Trade. Those discussions are moving along nicely with meetings being scheduled at the G-20 in Argentina.”

Trump has asked trade officials to draft a trade proposal to present to China, Bloomberg reported.

Soybeans for November delivery surged 13½¢ to $8.95½ a bushel overnight on the Chicago Board of Trade. Soy meal futures gained $1.10 to $314.50 a short ton, and soy oil added 0.19¢ to 28.51¢ a pound.

Corn futures rose 2¢ to $3.68¾ a bushel in Chicago.

Wheat for December delivery gained 1¾¢ to $5.09¾ a bushel overnight, while Kansas City futures rose 2¾¢ to $5.04 a bushel.

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2. Export Sales of Corn, Beans, Wheat All Rise Week to Week

Export sales of corn, soybeans, and wheat were all higher in the week that ended on October 25, according to the USDA.

Corn sales totaled 394,400 metric tons, up 13% from the prior week, the USDA said in a report. That’s still down 50% from the prior four-week average.

Mexico was the biggest buyer at 192,200 metric tons, followed by Colombia at 97,100 tons, and Peru at 63,400 tons. Japan bought 55,800 tons and Costa Rica purchased 46,400 tons. Vietnam canceled a purchase of 66,000 tons, South Korea nixed shipments for 62,800 tons, and Guatemalan canceled a cargo of 10,100 tons.

Soybean sales came in at 395,800 metric tons, up 86% from the previous week but down 34% from the prior average, the USDA said.

Portugal bought 142,400 metric tons, Argentina was in for 114,100 tons, and the Netherlands purchased 69,500 tons. The United Kingdom took 67,100 tons and Mexico bought 64,400 tons. Unknown buyers canceled shipments for 519,000 tons and China nixed a cargo of 62,800 tons.

Wheat sales were reported at 582,500 metric tons, up 32% from the previous week and 41% from the prior four-week average, the government said.

Japan was the big buyer at 120,700 tons, Bangladesh bought 60,000 tons, Vietnam was in for 60,000 tons, Venezuela also bought 60,000 tons. and Egypt took 50,000 tons from the U.S., according to the USDA.

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3. Storm Chances High Heading Into Weekend as Rain Expected in Parts of Corn Belt

Thunderstorm chances are firing up again in parts of the Midwest, as rainfall is expected in some areas this weekend, according to the National Weather Service.

Light rain is forecast in parts of eastern Kansas and north-central Missouri today, though the weather isn’t expected to be severe, the NWS said in a report early Friday morning.

In parts of central and western Illinois, thunderstorms are likely to fire up Monday and Tuesday as a “strong storm system” moves across the Midwest, the agency said.

“Current indications suggest the threat for organized severe storms will be along and south of the Interstate 70 corridor,” the NWS said.

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