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3 Big Things Today, November 27

Soybeans Rise in Overnight Trading; Export Inspections of Corn Higher Week-to-Week.

1. Soybeans Rebound From Monday’s Rout on Bargain Hunting

Soybean futures rebounded from yesterday’s double-digit loss as some bargain hunters snap up cheap contracts Tuesday morning.

Soybeans yesterday dropped more than 18¢ to the lowest in almost a month on concerns about the ongoing trade battle between the U.S. and China, the world’s two largest economies.

Fundamentally, nothing has changed – U.S. President Trump and China President Xi Jinping are expected to meet this week during the Group of 20 meeting in Argentina. Hopes were high that they’d be able to work out a trade agreement, but tensions have risen in the past couple of weeks.

China sent a letter to the U.S. with an initial trade deal offer, but that reportedly contained little of what Washington sought. The U.S. Trade Representative issued a statement last week accusing China of failing to curb “unfair” trade practices and intellectual property theft, which Beijing denied.

Further escalating concerns, Trump said in an interview with the Wall Street Journal that he could put a 10% tariff on iPhones and laptops imported from China, and that it’s “highly unlikely” he’ll delay an increase in tariffs from 10% to 25% on imports of goods from the Asian nation, which is scheduled for January 1.

Still, investors believe soybean futures have dropped to an attractive level, bringing back some buyers who’d been sitting on the sidelines.

Soybeans for January delivery gained 3½¢ to $8.65¾ a bushel overnight on the Chicago Board of Trade. Soymeal fell 30¢ to $304.80 a short ton and soy oil rose 0.17¢ to 27.36¢ a pound. 

Corn futures for December delivery rose 1¼¢ to $3.57¼ a bushel.

Wheat for March delivery fell 2¢ to $5.12 a bushel overnight and Kansas City futures added ½¢ to $4.90¼ a bushel.

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2. Corn, Soybean Inspections Rise Week-to-Week, Wheat Declines

Inspections of corn and soybeans for export to overseas buyers were both higher week-to-week, while wheat assessments declined, according to the U.S. Department of Agriculture.

Corn inspections in the seven days that ended on November 22 totaled 1.12 million metric tons, up from 845,957 a week earlier, the USDA said in a report. The total also was up from 643,301 tons during the same week in 2017.

The government examined 1.11 million metric tons of soybeans for overseas delivery, up from 1.07 million tons the previous week. That’s still down from 1.72 million tons during the same period last year, according to the agency.

Wheat inspections plunged by more than half to 252,489 metric tons from 509,265 tons, the USDA said. Assessments during the same week last year totaled 348,270 tons.

Corn inspections since the start of the marketing year on September 1 are now up to 13.1 million metric tons, up from 7.28 million during the same period in 2017, government data show.

Soybeans, however, are severely lagging the year-earlier pace. The USDA so far this year has inspected 12.2 million metric tons of U.S. supplies for overseas delivery, down from 21 million tons last year, the report said.

Inspections of wheat since the start of the grain’s marketing year on June 1 are now at 10 million metric tons, down from 12.4 million during the same period in 2017, the government said.

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3. Bitter Cold Set to Take Hold in Much of Central Midwest Today

Some lingering snow will fall in parts of northern Illinois today, but mostly it’s going to be cold in much of the Midwest.

Low temperatures are expected to be in the single digits from Nebraska to Missouri to Indiana, according to the National Weather Service. In northern Kansas and Missouri, temperatures will be in the teens this morning with wind chills in the single digits.

In northern Illinois where several inches of snow fell on Sunday, temperatures will drop into the single digits starting this evening as clearing skies, diminishing winds, and “deep snow cover” will mean a rapid cooling overnight.

Farther east, scattered flurries and subfreezing temperatures are forecast for much of central and northern Indiana today, the NWS said in a report early this morning.

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