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3 Big Things Today, October 29, 2021

Soybeans Rise in Overnight Trading; Export Sales Lower Across the Board.

1. Soybeans Higher, Wheat Lower Overnight

Soybeans were higher in overnight trading, following soy oil higher amid concerns about global supplies of cooking oils.

Palm oil futures in Malaysia were heading toward a second straight monthly gain and were up almost 1% Friday. Soy oil and palm oil are competitors on the global cooking oil market.

U.S. soybean oil prices are up about 0.5% this month after rising to the highest level since July before a recent sell-off.

Still, soybean futures are headed for a fifth straight monthly decline.

The U.S. Department of Agriculture said in a report earlier this month that it now sees stockpiles at the end of the 2021-2022 marketing year at 104.6 million metric tons, up from a prior outlook for 98.9 million tons.

Inventories at the end of the previous marketing year totaled 99.2 million metric tons, according to data from the USDA.

Wheat was lower in overnight trading, backing off earlier gains, amid some profit taking before the end of the week and the month.

Countering soybeans, wheat futures are headed for a fifth consecutive monthly increase.

Russia said yesterday that production will rise to 123 million metric tons this year, down from a prior estimate. The Buenos Aires Grain Exchange, however, raised its output forecast to 19.8 million metric tons from a previous projection.

Soybean futures for November delivery rose 4¢ to $12.50 a bushel overnight on the Chicago Board of Trade. Soymeal added $1.60 to $332.50 a short ton, while soy oil jumped 0.73¢ to 61.6¢ a pound.

Corn futures for December delivery were unchanged at $5.62¾ a bushel.

Wheat futures for December delivery fell 6¢ to $7.66½ a bushel, while Kansas City futures dropped 8½¢ to $7.81½ a bushel.

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2. Export Sales Broadly Lower Week-to-Week

Export sales of grains and beans dropped week-to-week, according to the USDA.

Corn sales in the seven days that ended on Oct. 21 declined to 890,400 metric tons, down 30% from the previous week and 10% from the prior four-week average, the agency said in a report.

Mexico was the big buyer at 492,900 metric tons, followed by Japan at 193,600 tons, and Colombia at 100,500 tons. An unnamed country bought 44,400 metric tons and Panama took 19,000 tons.

Exports for the week fell 34% to 688,500 metric tons, the government said.

Wheat sales last week totaled 269,300 metric tons, down 26% from the previous week and 31% from the average, the USDA said.

Mexico bought 140,800 metric tons, Ecuador took 24,700 tons, Honduras purchased 22,600 tons, Singapore was in for 22,000 tons, and South Korea took 19,500 tons.

Exports last week were reported at 185,600 metric tons, up 16% week-to-week.

Soybean sales plunged 59% to 1.18 million metric tons, the agency said. That’s also down 62% from the four-week average.

China purchased 1.08 million metric tons, the Netherlands bought 117,800 tons, Mexico was in for 93,900 tons, Taiwan bought 71,600 tons, and Pakistan took 69,000 tons.

The total would have been substantially higher but an unknown buyer nixed shipments of 469,300 metric tons.

Exports for the week were up 9% to 2.41 million metric tons, the USDA said in its report.

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3. Cold Weather Expected in Parts of Kansas This Weekend

Cold weather persists in parts of Kansas and extreme western Missouri as freeze warnings and frost advisories are in effect, according to the National Weather Service.

In far northeastern Kansas and a few counties in Missouri, temperatures overnight into Saturday are expected to fall to 31°F., the NWS said in a report early this morning.

The freeze warning is in effect from 3 a.m. to 9 a.m. Saturday.

In eastern Iowa and northern Illinois, meanwhile, north winds are forecast from 15 to 25 mph with gusts of up to 35 mph, the NWS said.

A cold snap is expected in the region for several days.

“Several nights of sub-freezing temperatures are expected next week, which will bring an end to the growing season for areas that have yet to see a hard freeze,” the NWS said.

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