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3 Big Things Today, October 8, 2021

Soybeans, Grains Higher Overnight; Export Sales of Corn, Wheat Rise.

1. Soybean and Grain Futures Rise Overnight

Soybean and grain futures were higher in overnight trading on signs of strong demand for U.S. supplies.

Exporters reported sales of 261,264 metric tons of U.S. soybeans to Mexico for delivery in the 2021-2022 marketing year that started on Sept. 1, the Department of Agriculture said in a report yesterday.

Mexico also purchased 314,256 metric tons of corn for delivery in the current marketing year.

On Tuesday, the USDA said Mexico purchased 426,800 metric tons of U.S. corn.

Prices also may be rising as investors prepare for Tuesday’s World Agricultural Supply and Demand Estimates (WASDE) report from the USDA.

Analysts polled by Reuters expected the government to estimate domestic corn production at 14.973 billion bushels. That would be down from the September forecast for 14.996 billion bushels.

Soybean output likely will be seen at 4.415 billion bushels, the Reuters survey said, up from the previous month’s outlook for 4.374 billion bushels.

On the weather front, some showers are expected in the eastern Midwest for the next couple of days and in the central and southwestern Corn Belt Monday and Tuesday, Commodity Weather Group said in a report.

That may lead to some harvest delays. About 34% of U.S. soybeans were collected at the start of the week, up from the 26% average for this time of the year. Some 29% of the corn crop was harvested as of Sunday, ahead of the 22% average, the USDA said.

Soybean futures for November delivery were up 11¢ to $12.58¼ a bushel overnight on the Chicago Board of Trade. Soymeal rose $1.20 to $320.50 a short ton, while soy oil gained 0.52¢ to 62.58¢ a pound.

Corn futures for December delivery added 3¢ to $5.37 a bushel.

Wheat futures for December delivery rose 4¼¢ to $7.54½ a bushel, while Kansas City futures added 5¼¢ to $7.46½ a bushel.

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2. Weekly Export Sales of Corn and Wheat Rise

Export sales of corn and wheat rose week-to-week while bean sales declined, according to the USDA.

Corn sales to overseas buyers for delivery in the 2021-2022 marketing year that started on Sept. 1 rose to 1.27 million metric tons from 370,400 metric tons a week earlier, the government said in a report.

Mexico was the big buyer at 801,400 metric tons, Colombia purchased 192,500 tons, Honduras took 96,800 tons, Canada bought 94,600 tons, and Guatemala was in for 60,000 tons.

The total would have been higher, but an unnamed country canceled cargoes of 149,500 metric tons, the agency said.

Exports for the week totaled 974,600 tons.

Wheat sales in the seven days that ended on Sept. 30 totaled 333,200 metric tons, a 15% increase from the previous week, the USDA said. Still, that’s down 19% from the prior four-week average.

Mexico purchased 89,100 metric tons, South Korea was in for 82,700 tons, the Philippines took 69,300 tons, and Nigeria bought 72,000 tons from U.S. supplies.

An unknown country nixed shipments of 42,200 tons, Brazil canceled cargoes of 19,500 tons, and the Dominican Republic canceled orders for 16,700 tons.

Exports of U.S. wheat for the week totaled 543,300 tons, up 47% from the previous week, the government said.

Soybean sales last week totaled 1.04 million metric tons, down from 1.09 million a week earlier.

China bought 671,300 metric tons, Indonesia purchased 128,400 tons, Germany took 86,300 tons, Taiwan was in for 84,000 tons, and Spain bought 72,400 tons. An unnamed country canceled shipments of 246,000 metric tons.

Exports for the week were reported at 940,200 metric tons, the USDA said in its report.

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3. Fire-Weather Watch Issued For Southwestern Kansas

A fire-weather watch has been issued for parts of southwestern Kansas this weekend amid extremely dry conditions, according to the National Weather Service.

Winds in the area will be sustained from 20 to 25 mph with gusts of up to 40 mph, the NWS said in a report early this morning.

Relative humidity will drop as low as 14%.

“Any fires that start will have extreme fire behavior and spread rapidly,” the NWS said. “Outdoor burning is not advised.”

Farther northeast in parts of eastern Iowa and northern Illinois, meanwhile, isolated thunderstorms are possible heading into the weekend, the agency said.

Severe weather isn’t expected. The next chance for storms in the area will be Monday, some of which could turn severe, the NWS said.

“While it is still too early to determine the exact severe weather risk, a few strong thunderstorms will certainly be possible,” the agency said.

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