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3 Big Things Today, November 6

Grains, Beans Little Changed Overnight; Weekly Export Inspections of Corn Continue to Impress.

1. Grains, Beans Little Changed as Investors Eye Fundamentals

Grains and soybeans were little changed as traders weigh the ongoing harvest in the U.S. against continued demand for corn and optimism about the soybean trade.

The U.S. corn crop was 76% harvested as of Sunday, up from 63% a week earlier, according to the USDA. That’s just below the prior five-year average of 77%.

About 83% of soybeans were collected, up from 72% a week earlier, but still well behind the average of 89% for this time of year, USDA data show.

On the bull side, investors are looking at signs of strong demand for corn. The export inspections figures from last week showed continued strength in corn shipments, as have recent sales reports.

Investors are also closely watching the ongoing trade dispute between the U.S. and China, which has cooled in recent weeks after President Trump said he had a fruitful conversation with China President Xi Jinping.

Xi yesterday said the Asian nation, the second-biggest economy in the world behind only the U.S., was open to the idea of relaxing import barriers on several items including agricultural products.

Corn futures for December delivery fell ½¢ to $3.73½ a bushel overnight on the Chicago Board of Trade.

Soybeans for January delivery fell ½¢ to $8.85¼ a bushel in Chicago. Soy meal futures added 20¢ to $310.80 a short ton, and soy oil declined 0.05¢ to 27.85¢ a pound.

Wheat for December delivery gained ½¢ to $5.07½ a bushel overnight, while Kansas City futures rose ¼¢ to $5.05 a bushel.

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2. Corn Inspections For Overseas Delivery Jump in Week Ended November 1

Inspections of corn for overseas delivery surged in the seven days that ended on November 1, according to the USDA.

Export sales jumped to 1.25 million metric tons last week, up from 698,619 tons a week earlier, the USDA said in a report. The total also was up from 456,819 tons during at the same time last year.

Soybean assessments, however, were down slightly to 1.23 million metric tons from 1.33 million seven days earlier, government data show. Wheat inspections also declined, falling to 327,192 metric tons from 393,939 tons.

U.S. corn has been in high demand since the start of the marketing year on September 1. In the past two months, the government has inspected just shy of 10 million metric tons of the grain for overseas delivery, up from 5.55 million tons during the same time frame a year earlier.

Low prices certainly have helped demand for U.S. supplies.

Soybeans and wheat demand hasn’t been as robust. Inspections of soybeans since September 1 were reported at 8.58 million tons through last week, down from 14.9 million tons in 2017. The ongoing trade war with China, which has traditionally been the biggest buyer of U.S. inventories, has cut export sales and accumulated exports.

Wheat assessments since the start of the grain’s marketing year on June 1 are at 8.94 million metric tons, down from 11.4 million during the same period last year. Ample global production and supplies have curbed demand for U.S. grain.

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3. Wind Gusts Forecast to Give Way to Snow This Week in Iowa, Illinois

It’s going to be extremely windy in parts of eastern Iowa and much of central Illinois today and tonight, but the wind will give way to snow later this week, according to the National Weather Service.

Wind gusts this afternoon and evening are expected to reach as high as 35 mph, the NWS said in a report early Tuesday morning. That’ll give way to a fast-moving weather system.

“A weather system will move through the area Thursday night with rain quickly changing to snow,” the agency said. “Up to 1 inch of snowfall is possible late Thursday night, north of I-70. Some melting and refreezing is possible overnight, which could lead to some slick spots for the Friday morning commute.”

Farther east, wind gusts today in much of Indiana and Ohio are expected to top 40 mph, according to the NWS.

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