3 Big Things Today, September 14, 2022
1. Soybean Futures Higher in Overnight Trading
Soybean futures were higher in overnight trading as investors digest Monday's World Agricultural Supply and Demand Estimates (WASDE) report from the U.S. Department of Agriculture.
Production was forecast by the USDA at 4.378 billion bushels, down from the August outlook for 4.531 billion bushels, the USDA said in its report.
Harvested area is now seen at 86.6 million acres while yield is pegged at 50.5 bushels an acre from 51.9 bushels in the government's July report.
Ending stockpiles were projected at 200 million bushels, down from 245 million forecast last month, the agency said.
Dry weather in parts of the U.S. Corn Belt led to the reduced outlook.
Corn futures were little changed in overnight trading even after the USDA pegged production at 13.944 billion bushels on yield of 172.5 bushels an acre. Those figures are down from the prior month's projection of 14.359 billion bushels and 175.4 bushels an acre, respectively.
Inventories of the grain are now seen at 1.219 billion bushels versus the July outlook for 1.388 billion bushels, the USDA said.
Still, rain fell in parts of southern Wisconsin, northern Illinois, Indiana, northwestern Ohio and parts of Michigan this week, said Don Keeney, ana agricultural meteorologist with Maxar, which may have given crops a boost as they mature.
Rains are expected to return to northwestern parts of the U.S. Midwest Thursday through Saturday, and dry weather in the southern and eastern Corn Belt will favor corn harvesting and soybean drydown, the forecaster said.
Dry weather in the Delta region also will help with harvesting and drydown.
Ukraine exports of agricultural products are now up to 3.1 million metric tons in the six weeks since an agreement was made with Russia to allow ships to sail from Ukrainian ports, according to the Infrastructure Ministry. The vessels were bound for Asia, Africa and Europe, the ministry said.
Soybean futures for November delivery rose 6¢ to $14.84 ¾ a bushel overnight on the Chicago Board of Trade. Soymeal added $2.70 to $426.50 a short ton, while soybean oil gained 0.45¢ to $67.18 a pound.
Corn futures for December delivery were up 3/4¢ to $6.96 ¾ a bushel.
Wheat rose 1/2¢ to $8.61 a bushel, while Kansas City futures added 1 1/2¢ to $9.35 1/4 a bushel.**
2. Combine Sales Rise While Tractor Sales Mixed, AEM Says
Combine sales in August improved in the U.S. and Canada year-over-year while tractor sales were mixed, according to data from the Association of Equipment Manufacturers.
Combine sales in the U.S. increased almost 26% from the same month last year to 790 units, AEM said in a report.
In the first eight months of the year, sales have risen 2.7% from the same timeframe a year earlier to 3,654 combines.
Total farm tractor sales last month, meanwhile, were down roughly 12% year-over-year in the U.S. to 22,007 units, the group said. Year-to-date tractor sales were down 15% to 188,510 units.
Sales of two-wheel-drive tractors dropped 11.7% to 21,750 units while four-wheel-drive sales plunged 11.4.% to 257, AEM said.
Canadian producers were in a buying mood in August as combine sales surged 33% to 221 units.
Tractor sales grew 7.2% to 2,239 units as four-wheel-drive sales more than quadrupled to 64, and farmers increased two-wheel-drive purchases by 4.9% to 2,175 units, the association said.
"Demand for everything other than the smallest units remains positive, but supply chain difficulties remain in the way of the supply side of the market," said Curt Blades, senior vice president of industry sectors and product leadership at the Association of Equipment Manufacturers. "Despite concerns around input costs for farmers, we are still seeing the larger units, harvesters and heavy-duty tractors, lead sales trends, indicating positive outlooks, especially among row crop farmers."
3. Storms Possible in Parts of Nebraska, Minnesota and Wisconsin
Isolated thunderstorms are possible in parts of northeastern Nebraska and western Iowa this evening, though severe weather isn't expected, according to the National Weather Service.
Storms in the area likely will continue through Saturday night, the NWS said in a report early this morning.
"At this time the risk of severe thunderstorms or flooding is low," the agency said.
Further north in parts of northern Minnesota and Wisconsin, a large storm system will move slowly through area starting tonight and continue into the weekend.
Heavy rain is expected, especially on Thursday and Friday, and thunderstorms will likely rumble through this weekend, the NWS said.
"A few severe storms will be possible Friday over parts of northern Wisconsin and east-central Minnesota," the agency said.