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3 Big Things Today, September 14

Wheat Futures Higher Overnight; Export Sales For Corn Miss Expectations.

1. Wheat Rebounds as Bargain Hunters Snap Up Contracts

Wheat futures rebounded overnight as bargain hunters came looking for supplies after the grain fell almost a dime yesterday.

Prices on Thursday fell after the USDA raised its outlook for global wheat supplies by 4.7 million metric tons and increased its production estimate. The USDA raised its outlook for Russia’s crop by 3 million tons to 71 million metric tons, accounting for most of the gain.

Still, the agency decreased its forecast for Australia’s crop due to drought by 2 million metric tons to 20 million, and lowered it’s outlook for Canadian production by 1 million tons to 31.5 million.

That brought in some investors after prices declined 9¾¢ in Thursday’s session.

Wheat for December delivery rose 6¢ to $5.03 a bushel overnight on the Chicago Board of Trade. Kansas City futures added 6¢ to $5.07¾ a bushel.

Soybeans and corn were slightly higher, also rebounding from losses.

Soybean futures for November delivery rose 3½¢ to $8.36¾ a bushel. Soy meal lost $1.10 to $313.80 a short ton, and soy oil was unchanged at 27.79¢ a pound.

Corn rose 1¼¢ to $3.51¾ a bushel overnight.

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2. Export Sales of Corn Miss Expectations, Beans, Wheat Within Forecasts

Export sales of corn in the week that ended on September 6 came in just below expectations, while soybean sales were within analyst forecasts.

Net sales of corn for delivery in the 2018-2019 marketing year that started on September 1 totaled 774,200 metric tons, according to the USDA, missing forecasts for 800,000 to 1.2 million tons.

Mexico was the big buyer at 218,400 metric tons, followed by Colombia at 166,600 tons, and Japan at 128,300 tons, the USDA said in a report. Peru bought 113,000 tons and Taiwan took 38,900 tons. About 2.93 million tons of sales were carried over from the 2017-2018 marketing year that ended on August 31.

Soybean sales were reported at 693,500 metric tons. Egypt purchased 196,300 metric tons, Japan was in for 87,000 tons, and Iran took 76,200 tons. The Netherlands bought 70,500 tons and Pakistan purchased 69,100 tons, the USDA said. An unknown customer canceled an order for 173,000 tons.

Analysts had pegged soybean sales from 500,000 to 1 million metric tons, according to Allendale. A total of 2.43 million metric tons of sales were carried over from the prior marketing year.

Wheat sales for delivery in the grain’s marketing year that started on June 1 came in at 387,600 metric tons, within expectations for 300,000 to 500,000 tons.

Taiwan was the big buyer for the week at 112,500 tons, followed by Mexico at 37,000 tons, and Italy at 31,700 tons. Nigeria bought 31,400 tons and Algeria was in for 30,000 tons. An unknown buyer canceled cargoes of 75,700 tons, the USDA said.

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3. Hurricane Florence Pounds North Carolina as Storm Slowed, Prolonging Surge

Hurricane Florence is pounding North Carolina this morning with a feared storm surge and 90 mph winds, and the eye of the storm hasn’t officially made land yet.

The storm slowed yesterday, which means those in the Carolinas will have to endure its wrath for longer. Three to 8 inches of rain have fallen already and flash flooding is occurring, according to the National Weather Service.

Wind gusts have been recorded as high as 95 mph and there’s potential for speeds to increase to 110 mph, the NWS said in a report early Friday morning. The storm will likely reach Category 1 or Category 2 hurricane levels.

The storm surge is expected to push up to 2 feet of water over the region, which will and already has caused widespread flooding. The impacts from the hurricane are expected to be “devastating to catastrophic,” the agency said.

“Life-threatening storm surge is occurring along portions of the North Carolina coast and will continue through today and tonight,” the NWS said. “This surge is also likely along portions of the South Carolina coast. The slow motion of the storm will make this a very prolonged flood event.”

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