3 Big Things Today, October 2
1. Soybeans, Corn Decline Slightly in Overnight Trading
Soybeans and corn were modestly lower overnight as some investors sold their contracts and booked profits after yesterday’s big jump and as the U.S. harvest continues.
Bean futures on Monday gained almost 13¢ while corn was up almost a dime. Prices rose after the U.S. and Canada announced a trade deal that will replace the North American Free Trade Agreement. The U.S. and Mexico had already come to an agreement.
Investors who were long the market, or had bet on higher prices, likely liquidated their positions to capitalize on the gains.
The U.S. soybean harvest was 23% finished as of Sunday, up from 14% a week earlier and ahead of the five-year average of 20% for this time of year, according to the Department of Agriculture. Corn collection was 26% complete, up from 16% seven days earlier and in front of the average of 17%, the USDA said.
Soybean futures for November delivery fell 2¾¢ to $8.55 a bushel overnight on the Chicago Board of Trade. Soy meal futures lost 60¢ to $313.20 a short ton, and soy oil declined 0.08¢ to 29.23¢ a pound.
Corn futures for December fell 2¼¢ to $3.63½ a bushel in Chicago.
Wheat for December delivery was unchanged at $5.09½ a bushel overnight in Chicago, while Kansas City futures added 1¢ to $5.12½ a bushel.
2. Export Inspections of Soybeans Lower Week to Week, Corn Little Changed
Export inspections of soybeans were lower week to week, while corn assessments were little changed, according to the USDA.
The government inspected 591,115 metric tons of soybeans in the seven days that ended on September 27, down from 718,825 tons a week earlier. That’s also down from the 897,384 tons that were assessed during the same week last year, the USDA said.
Inspections of corn totaled 1.34 million metric tons last week, down from 1.35 million seven days earlier but up from 853,700 tons during the same week in 2017.
Wheat assessments were also lower, falling to 369,270 metric tons from 428,214 tons, the USDA said. Last year during the same week, inspections totaled 739,246 tons, according to the government.
So far in the marketing year that started on September 1, the government has inspected 2.93 million tons of soybeans for overseas delivery. That’s down from the 3.97 million tons it’d examined during the same time frame a year earlier, government data show.
Corn inspections so far this year are up to 4.42 million tons from 3 million at this point in 2017.
Wheat assessments since the start of the grain’s marketing year on June 1 are well behind last year’s pace at 6.91 million tons. Last year at this time, the USDA had inspected 9.7 million tons for overseas delivery.
3. Strong Thunderstorms, Winds Possible For Flooded Areas of Iowa Starting Wednesday
Strong thunderstorms and winds are forecast for parts of eastern Iowa and western Illinois today, where flooding is already a big problem.
Strong, scattered storms are forecast starting Wednesday that will bring rainfall and southwest wind gusts from 35 to 40 mph, according to the National Weather Service.
“The Storm Prediction Center has placed a slight risk for severe storms for late Wednesday and Wednesday night, generally west of a line from Dubuque, Iowa, to southwest of Iowa City,” the NWS said in a report early Tuesday morning. “Marginal risk is in affect for much of the rest of the outlook area.”
Several rivers and streams are already over their banks in the region, including the Mississippi River, which is flooded from about Davenport, Iowa, all the way south past Quincy, Illinois.