3 Big Things Today, November 22, 2022
1. Grains, Soybeans Little Changed in Overnight Trading
Grains and soybeans were little changed in overnight trading as investors weigh concerns about Chinese lockdowns against adverse crop weather in South America.
Prices were lower yesterday on concerns about demand in China, the world's largest importer of soybeans, as restrictions again resume due to increased COVID-19 hospitalizations.
The number of cases in the country have increased in several cities including the capital city of Beijing. Residents have been told to work from home.
More than 27,000 new cases were recorded on Monday, just shy of the one-day record for the country, according to multiple reports.
Underpinning prices, however, is adverse weather in parts of Brazil, the world's largest exporter of soybeans, and Argentina.
Dry weather is growing in more than a quarter of Brazil's corn and soybean-growing areas, though that's expected to decline to about 20% of the total area in the next three days, Commodity Weather Group said in a note to clients.
In Argentina, stress is forecast to rebuild in the eastern 35% of the country, CWG said.
The weather outlook for wheat in the U.S. is mixed as storms later this week into the weekend likely will aid growth in the Delta and eastern Midwest where soft-red winter varieties are grown, the forecaster said.
In the southern Plains, however, about 45% of wheat is "dry and poorly established," CWG said in its report.
Corn for December delivery dropped ¼¢ to $6.63 ¼ a bushel overnight on the Chicago Board of Trade.
Wheat futures for December delivery fell 2¢ to $8.16 ¼ a bushel, while Kansas City futures lost 2¾ ¢ to $9.18 a bushel.
Soybean futures for January delivery was down ¾ ¢ to $14.36 a bushel. Soymeal declined $2 to $406 a short ton, while soybean oil added 0.95¢ to 71.68¢ a pound.**
2. Soybean and Wheat Export Inspections Rise Week-to-Week
Inspections of soybeans and wheat for overseas delivery rose week-to-week while corn assessments declined, according to data from USDA.
Soybean export inspections in the week that ended on Nov. 17 totaled 2.33 million metric tons, up from 1.96 million tons a week earlier, the agency said in a report.
The total, however, was down from the 2.52 million metric tons examined during the same week a year earlier.
Wheat assessments last week were reported at 279,904 metric tons, up from 170,424 tons the previous week and 193,189 tons at the same point last year.
Examinations of corn for overseas delivery came in at 495,395 metric tons, down from 535,416 tons a week earlier and well below the 826,140 tons assessed during the same week in 2021, USDA said.
Since the start of the marketing year on Sept. 1, the government has inspected 17.1 million metric tons of soybeans for offshore delivery. That's down from the 19.1 million tons during the same timeframe a year earlier.
Corn inspections since the beginning of September are now at 5.48 million metric tons, down from the 7.83 million tons examined during the same period the previous year.
Wheat examinations for export since the start of the grain's marketing year on June 1 now stand at 10.3 million metric tons, down narrowly from the 10.5 million tons assessed at this point last year, USDA said in its report.
3. Dry Weather Expected in Nebraska Amid Low Humidity, Strong Winds
Weather maps are relatively quiet again, though some dry weather is cause for concern in parts of western Nebraska, according to the National Weather Service.
Low humidity will lead to elevated fire conditions in the area, NWS said in a report early this morning. The dry weather is expected to continue.
"Elevated fire weather concerns exist for portions of southwest Nebraska Wednesday and Thursday," the agency said. "Low humidity with wind gusts up to 20 mph are expected Wednesday."
On Thursday, wind speeds will increase to 30 mph.
Further east, freezing fog is expected through late morning in parts of western Michigan.
Areas of dense, freezing fog may result in icy road conditions, especially on elevated surfaces such as bridges and overpasses, NWS said. The ice likely will continue overnight tonight into Wednesday morning