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3 Big Things Today, November 5, 2021

Soybean Futures Lower Overnight; Export Sales Rise Across the Board.

1. Soybean Futures Fall in Overnight Trading

Soybeans were lower in overnight trading while corn and wheat were little changed ahead of next week’s World Agricultural Supply and Demand Estimates (WASDE) report from the U.S. Department of Agriculture.

The USDA is expected by analysts to increase its outlook for soybeans and corn production from month-earlier forecasts, according to a Reuters survey.

The agency’s forecast for soybean stockpiles likely will rise while corn inventories likely will fall.

The government report is due out Tuesday.

Investors who were long the market, or had bet on higher prices in soybeans, may be taking a step back as the week ends ahead of a major USDA report.

Extremely cold weather that hit the southern Plains where hard-red winter wheat is growing is now lingering over the eastern Midwest where soft-red winter wheat is produced.

About 87% of U.S. winter wheat was planted as of Sunday, and 67% percent of the crop had emerged from the ground, government data show; 45% was rated good or excellent at the start of the week, down from 46% a week earlier.

Demand for U.S. products has been somewhat quiet this week. Exporters yesterday said Egypt bought 100,000 metric tons of soybeans, according to the USDA. Earlier in the week, China purchased 132,000 metric tons from U.S. supplies.

Soybean futures for November delivery fell 3¾¢ to $12.19 a bushel overnight on the Chicago Board of Trade. Soymeal declined $1 to $335 a short ton, while soy oil lost 0.5¢ to 59.08¢ a pound.

Corn futures for December delivery were up ½¢ at $5.59¾ a bushel.

Wheat futures for December delivery gained 2¾¢ to $7.76½ a bushel, while Kansas City futures rose ¾¢ to $7.86¾ a bushel.

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2. Export Sales of Grains, Beans Rise Week-to-Week

Export sales were higher across the board last week, according to a report from the USDA.

Corn sales in the seven days that ended on Oct. 28 totaled 1.22 million metric tons, up 37% from the previous week and 10% from the prior four-week average, the agency said.

Mexico was the big buyer at 666,300 metric tons, Japan took 114,900 tons, Guatemala purchased 105,400 tons, Colombia was in for 77,500 tons, and Saudi Arabia bought 74,000 tons, the government said.

Exports for the week were reported at 748,500 metric tons, up 9% week-to-week.

Soybean sales last week totaled 1.86 million metric tons, a 58% increase from the previous week and up 19% from the average, the USDA said.

China bought 1.21 million metric tons from U.S. supplies, Mexico bought 157,400 tons, the Netherlands took 142,100 tons, Egypt purchased 140,500 tons, and Spain was in for 92,900 tons.

The total would have been higher but an unnamed country canceled cargoes of 137,600 tons, the agency said.

Exports for the week rose 10% to 2.65 million metric tons.

Wheat sales at 400,100 metric tons rose 49% from the previous week and 4% from the average, the government said.

Mexico was in for 101,400 metric tons, South Korea purchased 50,000 tons, Taiwan bought 48,400 tons, unknown destinations took 31,700 tons, and Japan bought 30,300 tons.

Exports, however, fell 27% to 136,400 metric tons last week, the USDA said in its report.


3. Freeze Warnings Linger From Oklahoma to Atlantic

Freeze warnings are still in effect from eastern Oklahoma to the Atlantic coast, according to the National Weather Service.

In northern Arkansas, temperatures dipped into the upper-20s (°F.) overnight as a freeze warning remains in effect until 9 a.m., the NWS said in a report.

Temperatures in parts of eastern Arkansas and counties in Tennessee dropped to 29°F. overnight.

Farther north in parts of western and central Nebraska, extremely dry weather will lead to elevated fire conditions today and tonight, the agency said.

Temperatures will be above normal, the air will be dry, and winds will be breezy, creating tinderbox-like conditions, the NWS said.

Starting this weekend, however, the odds of precipitation increase as a storm rolls across the Great Plains. Wintry weather and snow are possible next week, the agency said.

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