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3 Big Things Today, November 3, 2021

Soybeans, Corn Higher Overnight; Export Sales Down Across the Board

1. Soybeans, Corn Higher in Overnight Trading

Soybean and corn futures were higher in overnight trading on signs of demand for U.S. supplies.

Wheat futures were mixed.

Exporters reported sales of 164,100 metric tons of soybeans to an unnamed buyer and 130,000 tons to China, all for delivery in the marketing year that started on Sept. 1, the U.S. Department of Agriculture said yesterday.

Corn sales of 150,000 metric tons to Colombia were reported Thursday, and on Wednesday the USDA said exporters sold 132,000 tons of soybeans to unknown countries.

While concerns about the omicron variant of the coronavirus persist, investors are taking more of a wait-and-see approach as scientists learn more about the strain.

Prices also may be rising amid slow farmer selling.

Jason Roose with U.S. Commodities said slow sales are giving the market a boost and that strong crush margins and demand for ethanol are adding to the buying.

Wheat futures were mixed overnight as investors weigh dry weather in Kansas against a report saying Australia's crop will increase year-over-year.

About 19% of Kansas is now suffering from some sort of drought, up from 15% a week earlier, according to the U.S. Drought Monitor. Three months ago only 11% of the state, the largest producer of wheat, was seeing drought.

Still, the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) said Monday that it now expects a record wheat crop. The forecast comes despite excessive rainfall in the country that may lead to losses and quality issues.

Soybean futures for November delivery jumped 10 3/4¢ to $12.55 a bushel overnight on the Chicago Board of Trade. Soymeal rose $2.70 to $351.50 a short ton, while soy oil gained 0.79¢ to 57.13¢ a pound.

Corn futures for December delivery were up 3 1/2¢ to $5.80 ¼ a bushel.

Wheat futures for December delivery rose 1 1/4¢ to $8.16 ¼ a bushel, while Kansas City futures fell 2 1/4¢ to $8.40 a bushel.

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2. Export Sales Down Across The Board

Sales of grains and soybeans to overseas buyers fell week-to-week, according to the USDA.

Corn sales in the seven days that ended on Nov. 25 totaled 1.02 million metric tons, down 29% from a week earlier and 12% from the prior four-week average, the agency said.

Mexico bought 423,800 metric tons, Canada took 198,200 tons, Japan was in for 118,400 tons, Colombia purchased 88,900 tons and Costa Rica took 76,500 tons.

Exports for the week rose 1% to 938,400 metric tons, the USDA said.

Wheat sales last week plunged to 79,900 metric tons, down 86% from the previous week and 80% from the average.

That's also the lowest level since the marketing year started on June 1.

Colombia bought 38,400 metric tons, Mexico took 16,800 tons, Malaysia purchased 9,000 tons, El Salvador was in for 7,000 tons and Guatemala took 4,300 tons, the government said.

Exports, however, surged 87% week-to-week to 371,400 metric tons.

Soybean sales to offshore buyers were reported at 1.06 million metric tons, down 32% from the previous week and 29% from the average, the Ag Department said.

China purchased 657,100 metric tons, Egypt took 68,000 tons, Thailand bought 67,600 tons, Germany was in for 66,900 tons and Bangladesh bought 62,000 tons.

The total would've been higher but an unnamed country canceled cargoes of 43,000 metric tons and Turkey nixed shipments of 9,800 tons.

Soybean exports for the week rose 3% to 2.33 million metric tons, the USDA said in its report.

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3. Winter Weather Moves Across Northern Plains

Winter storms are heading to the northern Plains along the Canada border, National Weather Service maps show.

A winter storm warning has been issued for northern Montana starting at 5 a.m. tomorrow and lasting 24 hours, the NWS said in a report early this morning.

Up to 7 inches of snow is expected, which could slow travel.

The entirety of North Dakota's and Minnesota's northern edges will be under a winter storm watch throughout the weekend.

As much as 6 inches of snow is forecast for the area along with wind gusts of up to 40 miles an hour Sunday, the agency said.

In the southern Plains, meanwhile, dry weather has led to extreme fire risk.

"Elevated fire weather conditions will be found across the western half of the Oklahoma Panhandle and the northwest Texas Panhandle today," the NWS said.

Relative humidity is forecast as low as 25% and winds will range from 15 to 25 miles an hour, the agency said.

Fire risks will remain in the area through Monday, the NWS said.

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