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3 Big Things Today, October 22, 2021

Grains, Soybeans Higher Overnight; Export Sales of Corn Rise Week-to-Week.

1. Grains, Soybeans Rise in Overnight Trading

Grains and soybeans were higher in overnight trading on signs of demand for U.S. supplies.

Exporters yesterday said Mexico purchased 130,000 metric tons of U.S. corn for delivery in the 2021-2022 marketing year that started on Sept. 1, the Department of Agriculture said in a report.

That was the first major sale to an overseas buyer this week after several purchases were made last week, government data show.

Weekly export sales were robust with corn and soybean sales both jumping from the previous week, the USDA said in a report yesterday.

On the weather front, dry weather is expected to persist in western and southern parts of the southern Plains where hard-red winter wheat was recently or is about to be planted, said Don Keeney, an agricultural meteorologist with Maxar.

Northeastern areas of the Southern Plains may see some rain that may improve soil moisture, but most of the region will remain dry, Keeney said.

At the start of the week, 70% of the U.S. winter-wheat crop was planted, ahead of the 60% that was in the ground a week earlier, but just behind the prior five-year average of 71%, the Ag Department said.

The International Grains Council said Thursday it now expects global corn production of 1.21 billion metric tons, a narrow increase from the previous outlook. Carryout is seen at 600 million metric tons, up from 599 million in last month’s report.

Wheat production is pegged at 781 million metric tons, unchanged from the previous month’s forecast, while stockpiles were forecast at 276 million metric tons, down from the September forecast for 277 million tons.

Soybean output was unchanged at 380 million metric tons. Inventories were seen at 60 million metric tons, up from 57 million last month.

Corn futures for December delivery rose 5¢ to $5.37¼ a bushel overnight on the Chicago Board of Trade.

Wheat futures for December delivery added 9½¢ to $7.50¾ a bushel, while Kansas City futures gained 14¼¢ to $7.62 a bushel.

Soybean futures for November delivery rose 4¼¢ to $12.37¾ a bushel. Soymeal increased $2.70 to $326.70 a short ton, while soy oil added 0.11¢ to 62.69¢ a pound.

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2. Weekly U.S. Corn and Bean Sales Surge

Export sales of corn and beans jumped week-to-week while wheat sales declined, according to the USDA.

Corn sales to overseas buyers in the seven days that ended on Oct. 14 were reported at 1.27 million metric tons, up 22% from the previous week and 67% from the prior four-week average, the agency said in a report.

Unknown countries bought 456,700 metric tons, Mexico purchased 377,100 tons, Japan too 230,100 tons, Colombia was in for 111,500 tons and Nicaragua bought 76,000 tons of U.S. corn.

Exports for the week were reported at 1.04 million metric tons, a 14% increase from the previous week, the government said.

Soybean sales totaled 2.88 million metric tons, up from 1.15 million tons a week earlier and up noticeably from the prior average, the USDA said.

China was the big buyer at 1.88 million metric tons, followed by unnamed buyers at 568,800 tons and the Netherlands at 127,300 tons. Egypt bought 97,300 tons and Bangladesh purchased 57,800 tons of U.S. soybeans.

Exports last week came in at 2.21 million metric tons, a 29% increase from the previous week, the agency said.

Wheat sales, meanwhile, fell 36% week-to-week to 362,400 metric tons. That’s also down 6% from the prior four-week average, the government said.

Nigeria took 98,000 metric tons, Japan purchased 92,100 tons, Colombia was in for 76,100 tons, Thailand bought 52,200 tons and Venezuela purchased 33,000 metric tons.

The total would have been higher but an unnamed destination canceled cargoes totaling 36,100 metric tons.

Exports of U.S. wheat last week were reported at 160,200 metric tons, down 65% from the previous week, the USDA said in its report.


3. Cold Weather Persists This Morning in Central Midwest

Freeze warnings and frost advisories remain in effect this morning as cold weather rolls through the central Midwest, according to the National Weather Service.

Temperatures overnight fell into the high-20s (°F.) in parts of eastern Nebraska through northern Iowa into extreme southeastern Minnesota, the NWS said in a report early this morning.

In northern Iowa, temperatures dropped to as low as 27°F. overnight, the agency said. The freeze warning in the area will end at 9 a.m.

Frost advisories have been issued in parts of northern Kansas where temperatures overnight were expected to dip to about 32°F. before dawn, the NWS said. The advisories are set to end at 10 a.m.

Farther south in the Oklahoma and Texas panhandles where hard-red winter wheat was recently planted, some thunderstorms are possible late tomorrow afternoon into the evening, the agency said.

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