3 Big Things Today, October 9, 2020

Soybeans, Grains Higher Overnight; Export Sales of Corn Drop Week-to-Week.

1. Soybeans and Grains Jump Overnight on Weather, Demand

Soybean and grain futures jumped in overnight trading on adverse global weather and continued demand for U.S. supplies.

Brazilian soybean producers are reportedly planting into extremely dry soils, which could potentially reduce yields, due to an ongoing lack of rainfall. In Argentina, stress is building in the northern half of the country’s corn and wheat belts, Commodity Weather Group said in a report.

Some rain is expected in parts of Brazil next week, which may hinder seeding, the forecaster said, but will help with soil moisture.

In the U.S., wheat growers are dusting in their winter crops because of a dry spell in the southern Plains.

Little or no rain has fallen in the past two weeks in the region, according to the National Weather Service, leaving soil extremely dry.

Exporters sold 374,000 metric tons of soybeans to China, 152,404 tons to Mexico and 132,000 tons to an unnamed country, the Department of Agriculture said in a report Thursday. That adds to the robust sales exporters have reported all week.

Traders and producers will be watching the USDA’s World Agricultural Supply and Demand Estimates report due at noon in Washington.

Analysts have pegged corn yield at 177.7 bushels an acre and bean yield at 51.6 bushels, according to researcher Allendale. Production is seen at 14.808 billion bushels and 4.282 billion, respectively.

Corn stockpiles are expected at 2.113 billion bushels, soybean inventories are forecast at about 369 million bushels, and wheat at 887 million bushels, Allendale said.

Global ending stocks of corn are pegged at about 300 million metric tons, world soybean inventories are seen at 91.4 million tons and wheat stockpiles are expected to come in around 317.2 million tons, the researcher said.

Soybean futures for November delivery rose 9¾¢ to $10.59¾ a bushel overnight on the Chicago Board of Trade. Soymeal added $3.70 to $363.30 a short ton, and soy oil gained 0.38¢ to 33.38¢ a pound.

Corn futures for December delivery rose 4½¢ to $3.91½ a bushel.

Wheat futures for December delivery gained 8¾¢ to $6.04 a bushel in Chicago, while Kansas City futures were up 9¼¢ to $5.38 a bushel.

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2.  Export Sales of Corn Drop Week-to-Week While Beans and Wheat Little Changed

Export sales of corn plunged week-to-week but still were relatively strong while wheat and soybean sales were little changed, according to the USDA.

Corn sales in the seven days that ended on Oct. 1 were reported at 1.23 million metric tons, down from 2.03 million tons a week earlier, the agency said in a report.

Japan was the big buyer this week at 360,100 metric tons, Mexico purchased 332,700 tons, unnamed countries bought 310,900 tons, Colombia took 93,400 tons, and Panama was in for 52,600 tons.

Wheat sales were slightly higher at 530,600 metric tons, up 5% from a week earlier and 27% from the prior four-week average, the USDA said.

The Philippines purchased 202,900 metric tons, Mexico took 96,300 tons, an unnamed country bought 79,800 tons, Indonesia was in for 57,000 tons, and Thailand bought 39,500 tons from U.S. supplies.

Soybean sales were little changed at 2.59 million metric tons last week.

China was in for 1.54 million metric tons, Mexico bought 183,300 tons, Egypt took 120,000 tons, Bangladesh purchased 111,000 tons, and Vietnam was in for 97,500 tons, the USDA said in its report.

Since the start of the marketing year on Sept. 1, overseas buyers have committed to purchase 25.8 million metric tons of U.S. corn, a 159% increase from the same time frame last year, the agency said.

Soybean sales so far are at 40.7 million metric tons, a 151% jump.

Wheat sales since the grain’s marketing year that started on June 1 are now at 14.6 million metric tons, an 8% increase from the same period in 2019, the USDA said.  


3. Hurricane Delta to Hit Louisiana Today With Winds Up to 110 mph

Hurricane Delta will make landfall along the Louisiana Gulf Coast today as a category 3 hurricane, according to the National Weather Service.

The NWS said those in the path of the storm face a life-threatening storm surge with water 7 to 11 feet above ground through Saturday afternoon.

Winds are expected to range from 74 to 110 mph through tomorrow morning, the agency said. Up to 10 inches of rain with locally higher amounts are forecast, and tornadoes are possible.

Flooding also will be likely in the area.

In parts of Iowa and Illinois, meanwhile, extremely dry weather has increased the odds of rapidly spreading fires, the NWS said.

“Warm temperatures, gusty winds, and dried crops will combine to result in a very high threat of field fires today,” the agency said. “Burning is strongly discouraged.”

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