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3 Big Things Today, November 27

Wheat Futures Lower Overnight; Corn Sales Strong, Wheat, Beans Disappoint.

1. Wheat Declines Amid Weak Export Sales; Soybeans, Corn Little Changed

Wheat was lower, while soybeans and corn were little changed in overnight trading.

Wheat futures declined after disappointing export sales numbers on Friday as traders return from the long weekend.

Total commitments from overseas buyers to purchase U.S. wheat since the start of the marketing year on June 1 are down 8% vs. the same time frame a year earlier, according to the USDA. Accumulated exports to date also are down 8% year over year.

Promises to buy U.S. corn are down 27% compared with the same period a year ago; soybean sales are down 17%, according to the USDA.

Chicago wheat fell 2¾¢ to $4.32 a bushel overnight on the Chicago Board of Trade. Kansas City futures declined 2¼¢ to $4.29¾ a bushel.

Soybean futures for January delivery lost ¼¢ to $9.93 a bushel. Soy meal rose 60¢ to $326.50 a short ton, and soy oil fell 0.13¢ to 33.95¢ a pound.

Corn futures for December delivery declined a penny to $3.41¼ a bushel overnight.

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2. Corn Export Sales Strong Last Week; Wheat, Soybean Sales Disappointing

Export sales of corn were on the top end of the expected range, while soybean sales disappointed last week.

Exporters in the week that ended on November 16 sold 1.08 million metric tons of corn to overseas buyers, the USDA said in a report that was delayed by the Thanksgiving holiday. Analysts had expected sales from 900,000 tons to 1.1 million tons.

Sales were up 14% from the previous week but down 20% from the prior four-week average.

Japan was the biggest buyer, taking 289,000 metric tons, followed by Peru at 207,900 tons, and unknown buyers at 158,600 tons, the USDA said. Mexico was next at 139,100 tons and Saudi Arabia bought 70,900 tons. South Korea canceled a prior purchase of 61,300 tons.

Soybean sales totaled 869,100 tons – a marketing-year low – down 21% from the prior week and 45% from the average, the government said.

China was the biggest customer at 407,100 tons, unknown buyers took 164,000 tons, Mexico bought 105,900 tons, the Netherlands purchased 69,300 tons, and Peru was in for 36,400 tons, according to the USDA.

Analysts had pegged bean sales from 1 million to 1.4 million tons.

Wheat sales were extremely disappointing, as exporters only sold 199,800 tons from U.S. inventories last week, the agency said.

Japan was the big buyer, taking only 68,300 tons. Algeria was next at 62,000 tons, Mexico took 42,700 tons, Morocco was in for 30,000 tons, Singapore bought 21,000 tons, and the Philippines purchased 13,700 tons.

The total wouldn’t have been as bad, but an unknown customer canceled an order for 59,700 tons, the USDA said.

Analysts had expected wheat sales from 350,000 to 550,000 tons.

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3. Red-Flag Warnings Issued in Parts of Southern Plains, Southwestern Missouri

Red-flag warnings, which occur when conditions are extremely dry, have been issued in several parts of the U.S. including the Southern Plains and parts of southwestern Missouri.

Several counties in eastern Colorado and the Oklahoma and Texas panhandles are in such a warning until 6 p.m. this evening due to strong winds and low relative humidity, the National Weather Service said.

Winds are forecast to be sustained from 20 to 25 mph with stronger gusts, the NWS said in a report early Monday morning. Relative humidity is expected to be only about 15% today, and temperatures are projected in the low 80s.

Farther east, a red-flag warning has been issued for the southwestern quadrant of Missouri.

Winds are pegged from 15 to 25 mph with gusts up to 35 mph, the NWS said. Humidity will be from 20% to 30% in the late-morning and afternoon hours.

A red-flag warning is issued when there’s a “critical” risk of wildfire conditions due to strong winds, low humidit, and warm temperatures, the agency said.

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