3 Big Things Today, October 5
1. Wheat Futures Rise on Continued Speculation About Russia
Wheat futures rose in overnight trading on continued speculation that Russia will limit exports.
News reports last week surfaced that the Russian government planned to close 30 grain-loading ports after they violated phytosanitary rules. That would curb shipments from the world’s largest exporter of the grain.
Prices are also higher after Egypt’s General Authority for Supply Commodities (GASC) said it bought 180,000 metric tons of Russian wheat. While the country didn’t buy from the U.S., the purchase will reduce global supplies.
Wheat for December delivery rose 4¼¢ to $5.22¼ a bushel overnight on the Chicago Board of Trade, and Kansas City futures added 4¼¢ to $5.26½ a bushel.
Corn futures for December gained ¼¢ to $3.67¾ a bushel in Chicago.
Soybeans for November delivery rose ½¢ to $8.59¾ a bushel overnight. Soy meal futures added 40¢ to $312.60 a short ton, and soy oil fell 0.17¢ to 29.44¢ a pound.
2. Soybean Export Sales Jump Week to Week, Grain Sales Decline
Export sales of soybeans jumped week to week in the seven days that ended on September 27 while corn sales were lower, according to the USDA.
Soybean sales totaled 1.52 million metric tons last week, up from 870,700 tons the previous week, the USDA said. Mexico was the big buyer at 730,400 metric tons, followed by an unknown customer who bought 274,000 tons. Germany took 135,800 tons, Argentina was in for 96,000 tons, and the Netherlands purchased 79,500 tons.
China canceled a shipment for 124,100 tons.
Corn sales declined but were still at a lofty 1.43 million metric tons last week. That’s down from 1.71 million tons the previous week, according to the government.
Mexico was also the biggest buyer of corn at 527,400 metric tons. Canada took 199,700 tons, Peru purchased 184,900 tons, Japan was in for 173,900 tons, and South Korea bought 136,100 tons. An unknown customers canceled cargoes of 62,700 tons.
Wheat sales were also lower week to week, dropping 34% to 435,300 metric tons. Brazil was the biggest customer at 90,000 tons, Saudi Arabia bought 65,000 tons, Nigeria was in for 55,500 tons, Iraq purchased 52,200 tons, and Japan took 31,000 tons, the USDA said.
Thailand and an unknown customer canceled a combined shipments of 10,200 metric tons.
3. Flood Warnings, Flash Flood Watches in Effect For Northeastern Iowa, Northwestern Illinois
Flood warnings and flash flood watches are in effect for much of northeastern Iowa and northwestern Illinois this morning as more rain hits the already-inundated area, according to the National Weather Service.
“A prolonged wet weather pattern will lead to another round of heavy rain, which will likely bring both flash flooding and river flooding to the area,” the NWS said in a report. “Soils are wet and cannot absorb moisture from any new heavy rainfall.”
Rivers are already running high if not over their banks, and another 1 to 3 inches of rain are possible tonight into tomorrow morning.
Much of the rain will run off and potentially lead to flash flooding, the NWS said. The rain is expected to stick around past Saturday, so additional flood watches may be needed.