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3 Big Things Today, October 6
1. Grains, Beans Little Changed on Delays, Potentially Higher WASDE Estimates
Grains and soybeans were little changed as investors weigh planting delays in the Midwest against reports that analysts expect the USDA to raise its yield estimates in next week’s supply/demand report.
Rainfall in much of the Midwest this week has kept farmers out of fields, worsening delays in a year when the harvest has already been delayed. Some believe yields will still be lower than the USDA forecast last month.
Some analysts, meanwhile, are reportedly expecting the USDA to raise its forecast for yield and production in next Thursday’s World Agricultural Supply and Demand Estimates Report, or WASDE.
While the final tallies haven’t yet been tabulated, some early analyst predictions are showing that they expect the government to increase its projections, said Jeff Kaprelian, the trade desk manager at The Hueber Report in Sycamore, Illinois.
Corn futures for December delivery fell ½¢ $3.49 a bushel overnight on the Chicago Board of Trade.
Soybeans for November delivery fell 1¾¢ to $9.66½ a bushel overnight. Soy meal dropped $1.30 to $315.60 a short ton, and soy oil rose 0.05¢ to 33.05¢ a pound.
Wheat for December delivery fell a penny to $4.39¾ a bushel, and Kansas City futures declined 1¼¢ to $4.33 a bushel.
2. Export Sales of Corn Top Expectations While Soybean Sales on Lower End of Forecasts
Export sales of corn were higher than expected in the week that ended on September 28, while soybeans were on the lower end of forecasts.
Corn sales last week totaled 814,000 metric tons, the USDA said in a report on Thursday. That tops expectations for 500,000 to 700,000 tons.
Mexico was the biggest buyer at 190,600 tons, followed by South Korea at 119,600 tons. Colombia bought 116,700 tons, unknown buyers were in for 115,300 tons, China took 76,100 tons, and Honduras purchased 65,300 tons.
Soybean exporters sold 1.02 million metric tons, the USDA said, on the low end of expectations for sales of 1 million to 1.5 million.
China, as usual, was the biggest buyer, taking 608,900 tons, according to the government. Thailand was next at 93,600 tons, Portugal was in for 70,700 tons, Vietnam took 70,500 tons, and the Netherlands purchased 66,600 tons.
Wheat sales were reported at 492,300 tons, the USDA said, at the top end of forecasts for 300,000 to 500,000 in sales.
The Philippines was the biggest buyer at 87,800 tons, followed by China at 68,100 tons, Japan at 68,100 tons, Taiwan at 33,300 tons, and the United Arab Emirates at 30,000 tons, according to the government.
3. Flood Watch Continues Where Four States Meet, Warning Issued Along Tarkio
The flood watch that was in effect for the area where Nebraska, Iowa, Kansas, and Missouri meet is still in force today with some flood warnings thrown in.
Several counties in all four states are under the watch with a flood warning issued along the Tarkio River between Falls City, Nebraska, and Maryville, Missouri, according to the National Weather Service.
The river, which empties into the Missouri River downstream, was at 13.4 feet as of 5:15 a.m. and is expected to rise above the 17-foot flood stage by this afternoon, hitting 19.4 feet tonight. The river will fall back below flood stage by early Sunday, the NWS said.
Farther east, thunderstorms are possible for parts of southern Michigan today. On Saturday, wind gusts topping 40 mph are possible, which may knock out power as another line of storms rolls through the region, the NWS said.
A freeze warning has been issued for parts of extreme northern Minnesota near the Canada border, according to the agency. Temperatures will drop into the upper 20s and lower 30s and will kill crops and other sensitive vegetations, the NWS said.