3 Big Things Today, October 26
1. Wheat Futures Rebound Overnight on Bargain Hunting
Wheat futures rebounded overnight on value buying after the price fell below the key $5 level.
Prices dropped below $5 amid record global supplies in the 2017-2018 marketing year. The USDA said inventories in the 2018-2019 year that started on June 1 will be the second-highest on record.
The International Grains Council yesterday raised its forecast for global wheat production.
Still, demand for the grain is strong globally. Consumption in the current marketing year that ends on May 31 will rise to a record 745.6 million metric, according to data from the USDA.
Wheat for December delivery rose 6½¢ to $4.93¾ a bushel overnight on the Chicago Board of Trade, while Kansas City futures added 6½¢ to $4.93 a bushel.
Corn futures gained 1½¢ to $3.62½ a bushel overnight.
Soybeans for November delivery rose 2¢ to $8.43¾ a bushel. Soy meal futures added $1.80 to $306.10 a short ton, and soy oil fell 0.09¢ to 28.30¢ a pound.
2. Export Sales Lower Across the Board Amid Order Cancelations
Export sales of corn, soybeans, and wheat all were lower week to week, according to the USDA.
Corn sales in the seven days that ended on October 18 totaled 349,531 metric tons, down from 382,534 a week earlier, the USDA said in a report.
Mexico was the big buyer at 275,800 metric tons, followed by Colombia at 208,500 tons, and Honduras at 47,800 tons. Costa Rica bought 37,000 tons, and Tunisia was in for 19,300 tons.
The total would’ve been higher but an unknown customer canceled an order for 164,500 tons, South Korea canceled a shipment for 69,000 tons, Vietnam nixed cargoes of 60,000 tons, and France canceled a purchase of 20,500 tons, according to the government.
Soybean sales last week totaled 212,709 metric tons, down from 293,566 the previous week, the USDA said.
Egypt was the biggest buyer, taking 111,300 tons, followed by Taiwan at 99,000 tons, and the Netherlands, which purchased 93,500 tons. Argentina bought 78,100 tons, and Spain was in for 66,200 tons.
An unknown buyer canceled shipments for 530,200 tons, and China canceled a cargo of 60,000 tons.
Wheat sales for delivery in the grain’s marketing year that started on June 1 fell to 442,559 metric tons from 475,998 tons a week earlier.
An unknown buyer purchased 175,200 tons, Mexico took 84,800 tons, Italy was in for 52,500 tons, and Panama bought 24,900 tons. Taiwan canceled a shipment for 16,300 tons, the government said.
3. Rainfall Near St. Louis Area Expected to Move East, Dry Up as Day Goes On
Rain that’s been falling in the St. Louis will continue to move east as the day progresses, according to the National Weather Service.
The storm bringing the precipitation will leave the area or become light drizzle by early afternoon, the NWS said in a report early Friday morning.
Strong winds are expected in parts of North Dakota today as gusts are forecast around 50 mph. The strong winds are expected to continue through the weekend and move east into Minnesota, the agency said.
Flooding, meanwhile, continues along the Iowa-Illinois and Missouri-Illinois borders as the Mississippi River continues to hold above its banks.
The good news, however, is that water levels are declining, and in some areas, the river is expected to drop below flood stage, according to the NWS.