3 Big Things Today, October 26, 2021
1. Soybeans and Grains Take Bearish Tone Overnight
Soybeans and grains were modestly lower in overnight trading as the U.S. harvest stays ahead of the normal pace.
About 73% of the U.S. soybean crop was harvested as of Sunday, up from 60% a week earlier, the Department of Agriculture said in a report. That’s also ahead of the prior five-year average of 70%.
Corn producers had harvested 66% of their crops at the beginning of the week, up from 52% the previous week and the average of 53% for this time of the year.
Winter wheat planting continues with 80% in the ground, up from 70% last week but on par with the average, the USDA said. About 55% of the crop has emerged, up from 44% a week earlier and behind the prior five-year average of 59%.
The government released its first weekly condition report for winter wheat, showing 46% of the crop was in good or excellent condition. That’s up from 41% at the same point last year.
Analysts polled by Reuters, however, were expecting 54% to earn top ratings.
Soybean futures for November delivery fell 1¼¢ to $12.45½ a bushel overnight on the Chicago Board of Trade. Soymeal lost 70¢ to $326.50 a short ton, while soy oil was unchanged at 63.14¢ a pound.
Corn futures for December delivery lost ¼¢ to $5.37¾ a bushel.
Wheat futures for December delivery fell 1½¢ to $7.58 a bushel, while Kansas City futures dropped 2¢ to $7.75¾ a bushel.**
2. Grains, Bean Inspections Fall Week-to-Week
Inspections of corn, wheat, and beans all declined week-to-week, according to the USDA.
Corn assessments in the seven days that ended on Oct. 21 were reported at 545,127 metric tons, down from 1.05 million tons a week earlier, the agency said in a report.
That’s also down from the 680,823 tons assessed during the same week last year.
Wheat examinations for offshore delivery declined to 140,413 metric tons last week, the agency said. That’s down from 141,450 tons the previous week and the 399,645 tons that were inspected a year earlier.
Soybean inspections fell to 2.1 million metric tons from 2.45 million tons the previous week and below the 2.89 million tons assessed during the same week in 2020.
Since the start of the marketing year on Sept. 1, the USDA has inspected 4.71 million metric tons of U.S. corn for overseas delivery, the Ag Department said, down from the 6.17 million tons assessed during the same time frame a year earlier.
Inspections of soybeans since the beginning of September now stand at 8.13 million metric tons, well below the 14.8 million tons examined during the same period in 2020.
Wheat assessments since the start of the grain’s marketing year on June 1 are now up to 9.48 million metric tons. That’s still behind the 11.1 million tons inspected at the same point last year, the USDA said in its report.
3. Red-Flag Warnings Issued in Parts of Kansas, Oklahoma, Texas
Red-flag warnings have been issued in parts of the southern Plains, according to the National Weather Service.
Extremely dry weather has led to the warnings, which stretch from northeastern Colorado and northwestern Kansas straight south into the Texas panhandle.
In southwest Kansas, winds are forecast from 20 to 30 mph with gusts of up to 45 mph, the NWS said in a report early this morning.
Relative humidity is expected to drop as low as 12%, the agency said.
In the Texas panhandle, meanwhile, southwest winds are expected to top out at 33 mph with gusts of up to 45 mph, the agency said. Humidity levels also are forecast to fall as low as 12%.
Farther north in Minnesota, a high-wind warning has been issued from 11 a.m. to 7 p.m. today. Southeast winds are forecast from 25 to 35 mph with gusts up to 50 mph.
“Gusty winds could blow around unsecured objects,” the NWS said. “Tree limbs could be blown down, and a few power outages may result.”