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3 Big Things Today, October 19

Soybeans Slightly Higher Overnight; Export Sales of Corn Plunge to Marketing-Year Low,

1. Soybeans Modestly Higher Overnight, Grains Little Changed

Soybeans rebounded from lows, rising slightly in overnight trading while corn and wheat were both little changed.

Bean futures were higher as investors keep an eye on a truckers’ strike in Argentina that was reported by Reuters, citing Commerzbank analysts.  Any slowing of movement in the South American country could push buyers to the U.S.

Also keeping futures underpinned are concerns about the quality of the U.S. crop. While it’s been dry for the past seven days, widespread reports of crop damage after weeks of excessive rainfall are being reported in the Corn Belt.

Still, weak export sales last week and expected acceleration of the harvest this week are keeping prices capped. Soybeans are on track for a weekly loss.

Soybeans for November delivery rose 1 1/2¢ to $8.65 a bushel overnight on the Chicago Board of Trade. Soymeal futures gained 70¢ to $317 a short ton and soy oil added 0.09¢ to 29.11¢ a pound.

Corn for December delivery fell 1/2¢ to $3.70 ¼ a bushel overnight.

Wheat for December delivery lost 1¢ to $5.12 a bushel overnight while Kansas City futures declined 1 3/4¢ to $5.13 a bushel.

**

2. Corn Export Sales Hit Marketing-Year Low, Bean Sales Decline on Cancelations

Export sales of corn plunged to a marketing-year low in the week that ended on Oct. 11 while soybeans badly missed forecasts.

Corn sales to overseas buyers last week were reported at 382,500 metric tons, down 62% from the previous week and 72% from the prior four-week average, the U.S. Department of Agriculture said in a report. That’s the lowest since the year started on Sept. 1.

Analysts had pegged sales from 800,000 to 1.3 million tons, according to Allendale.

Mexico was the biggest buyer at 162,500 tons, followed by Colombia at 133,000 tons, Japan at 119,600 tons and South Korea, which took 68,100 tons. The total was hurt after an unknown customer canceled shipments of 326,500 tons and the Dominican Republic nixed a shipment for 18,000 tons.

Soybean sales came in at 293,600 metric tons, down 33% from a week earlier and 67% from the average, the USDA said.  

Analysts had expected sales from 600,000 to 1 million tons.

Spain bought 188,000 metric tons, the Netherlands took 113,600 tons, Mexico purchased 111,500 tons, Thailand took 77,700 tons and Vietnam was in for 75,200 tons. An unknown buyer canceled cargoes totaling 694,400 tons, the agency said.

Wheat sales, meanwhile, rose 40% week-to-week to 476,000 metric tons, according to the USDA. Bangladesh bought 180,000 tons, Japan took 78,700 tons, an unknown buyer purchased 76,100 tons, Italy was in for 35,500 tons and the Philippines purchased 31,700 tons.

The sales were within forecasts for 300,000 to 600,000 tons.

**

3. Dry Weather Dominates Midwest Friday, Several Rivers Still Over Their Banks

Dry weather is dominating weather maps heading into the weekend, according to the National Weather Service, which is good news for producers who need to get their crops harvested.

Only some light showers are forecast for parts of the central Corn Belt today, but overall crop collection should accelerate nicely, forecasters said.

Flooding is still an issue in several areas. Iowa is bookended by floods as both the Missouri and Mississippi rivers are still overflowing their banks after excessive rainfall more than a week ago, the NWS said early Friday morning.

The Mississippi River is still flooded near Dubuque, Clinton, Davenport all the way south along the Missouri and Illinois border. On the other side of the state, flooding on the Missouri river starts near Council Bluffs, Iowa, and extends south to St. Joseph.

Flash flood watches and flood warnings are still in effect in central Texas where several waterways are over their banks.

The Colorado River is over flood stage in several areas, and more rain is on the way, the NWS said in a report early this morning.

“Scattered showers, some with heavy rainfall, are expected to continue across the area today,” the agency said. “With saturated soils and with numerous area streams and rivers in flood or at bankfull, any additional rainfall could result in additional flash flooding.”

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