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3 Big Things Today, November 30

Soybeans, Grain Little Changed Overnight; Corn Sales Jump Week to Week.

1. Soybeans, Grains Little Changed Ahead of G20 Meeting

Soybeans and grains were little changed ahead of the Group of 20 meeting this weekend in Buenos Aires, with all eyes on trade relations between the U.S. and China.

President Trump is scheduled to meet with China President Xi Jinping tomorrow in a meeting that likely will be dominated by trade talks. Some analysts have been more optimistic in recent days that a deal will be hammered out between the world’s largest economies, though how in-depth the agreement would be remains a question.

The countries now have tariffs on hundreds of billions of dollars’ worth of each other’s goods. Soybean shipments to China have all but stopped, and the Asian nation, once the biggest buyer of the oilseeds from the U.S., is sourcing from Brazil and Argentina.

Scotiabank analysts this week said they would expect some sort of deal, though China likely won’t give too much and instead may offer just enough for Trump to claim victory. Gary Locke, the former U.S. ambassador to China, told CNBC that he expects an agreement in which Trump would withhold further tariffs in exchange for talks in coming months.

Trump said in a Wall Street Journal report this week that he is considering adding tariffs on imports of iPhones and laptops and wouldn’t back down from a plan to increase the rate of tariffs on some Chinese imports to 25% from 10% on January 1 if a deal isn’t reached.

Soybeans for January delivery rose 1½¢ to $8.88¾ a bushel overnight on the Chicago Board of Trade. Soy meal declined $1 to $308.50 a short ton, and soy oil gained 0.15¢ to 28.06¢ a pound. 

Corn futures for December delivery rose ¼¢ to $3.73½ a bushel.

Wheat for March delivery added 1½¢ to $5.09¼ a bushel overnight, and Kansas City futures rose ¾¢ to $4.93¼ a bushel.

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2. Corn Sales Jump Week to Week While Soybeans, Wheat Mixed

Corn sales jumped in the week that ended on November 22 while soybeans were mixed, according to the USDA.

Export sales of corn last week were reported at 1.27 million metric tons, up 44% from the prior week and 77% from the previous four-week average, the USDA said in a report.

South Korea was the biggest buyer at 327,900 metric tons, follow by Colombia at 267,800 tons, and Japan at 197,500 tons. Peru took 157,000 tons and Mexico purchased 120,800 tons. Exports last week totaled 1.053 million metric tons, up 26% week to week and 4% from the average.

Soybean sales totaled 628,800 tons, down 8% from the previous seven days but up 50% from the four-week average, the government said.

The Netherlands was the biggest customer at 235,600 tons, Argentina was in for 112,700 tons, Mexico took 94,300 tons, Japan bought 67,800 tons, and Pakistan purchased 65,700 tons, according to the USDA. An unknown buyer canceled shipments for 193,600 tons and China canceled a cargo of 63,000 tons.

Shipments last week totaled 1.02 million tons, down 20% from the prior week and 15% from the average, the government said.

Wheat sales of 377,100 tons were up 14% week to week but down 25% from the prior average.

Peru bought 80,500 tons, Nigeria was in for 78,5500 tons, Mexico purchased 78,100 tons, and Japan took 56,000 tons. An unknown customer canceled a purchase of 66,600 tons. Exports fell to a marketing-year low of 249,800 tons, down 50% from the previous week and 34% from the prior four-week average, the USDA said.

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3. Winter Storm Warning Issued For Nebraska, South Dakota as Up To 16 Inches Expected

Weather maps are very active this morning, as winter storm warnings have been issued for much of Nebraska and the southern half of South Dakota, and dense fog advisories are in effect for pretty much all of Iowa and northern Illinois.

In central Nebraska, heavy snow is expected starting tonight with accumulations totaling as much as 16 inches, according to the National Weather Service. Wind gusts are pegged around 30 mph.

In Iowa, areas of dense fog have enveloped central and northern counties, creating slick spots on roads and bridges as it freezes on surfaces, the NWS said in a report early Friday morning. Visibility in some areas are down to ¼ mile.

“Slick, frosty patches can be expected on roads, bridges, and sidewalks due to fog deposits freezing on surfaces,” the NWS said. “This could create difficult driving conditions at times and will impact the morning commute."

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