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3 Big Things Today, September 15

Soybeans Decline in Overnight Trading; Export Sales Mostly Strong to Start Year.

1. Soybeans Lower Overnight as Investors Take Profit After 25¢ Rally

Soybeans were lower in overnight trading as investors booked profits after two straight days of double-digit gains.

Futures closed 15¢ higher yesterday and 10¢ higher on Wednesday. Many investors likely closed out their long contracts, or bets on higher prices, analysts said. Corn also declined overnight.

Prices had risen the past two sessions despite a bearish report from the USDA earlier this week in which the agency unexpectedly raised its yield forecast for both beans and corn. The report was widely panned by producers, analysts, and traders who feel that the crops aren’t as big as the government expects.

The USDA in the report even admitted that damage from Hurricanes Harvey and Irma haven’t yet been factored into its estimates. Even with those adjustments, however, some believe the agency’s projections and still too high.

Soybeans for November delivery fell 3¼¢ to $9.72¾ a bushel overnight on the Chicago Board of Trade. Soy meal futures lost $1.40 to $311.70 a short ton, and soy oil declined 0.09¢ to 34.99¢ a pound.

Corn for December delivery fell 1½¢ to $3.52¾ a bushel overnight.

Wheat for December delivery lost 1¾¢ to $4.41¼ a bushel in Chicago, while Kansas City futures fell ¾¢ to $4.41¼ a bushel.

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2. Corn, Soybean Export Sales Robust to Start New Marketing Year; Wheat Disappoints

Corn sales in the first week of the new marketing year that started on September 1 were pretty solid, totaling 1.05 million metric tons, the USDA said in a report.

Mexico was the biggest buyer at 433,400 metric tons, according to the USDA. Colombia was second at 137,400 tons, Japan was in for 118,700 tons, and South Korea purchased 68,500 tons.

Soybean sales also were robust at 1.61 million metric tons. China, not surprisingly, was the lead buyer at 1.21 million tons. Indonesia bought 104,300 tons, Mexico took 66,100 tons, South Korea was in for 65,000 tons, and Pakistan purchased 64,200 tons, the USDA said.

Wheat sales for delivery in its marketing year that started on June 1 weren’t so stellar. Exporters sold 316,700 tons of the grain to overseas buyers in the week that ended on September 7, down 16% from the previous week and 34% from the four-week average.

Unknown buyers were in for 89,300 metric tons, Colombia bought 65,800 tons, and Turkey purchased 50,000 tons. The Dominican Republic bought 40,000 tons, and Italy took 25,000 tons, according to the USDA.

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3. Thunderstorms, Possibly Severe, Expected Today in Parts of North-Central Midwest

Thunderstorms in eastern South Dakota, western Minnesota, northern Nebraska, and northwestern Iowa may produce strong winds and hail today, according to the National Weather Service.

“Additional thunderstorms will become more likely by later this evening,” the NWS said in a report early Friday. “An isolated storm could produce wind gusts to 60 mph to 70 mph and hail up to quarter size through midnight.”

More storms are possible through the weekend across much of southern Minnesota and northwestern Iowa, and any that develop are capable of producing strong winds and large hails, the NWS said.

Farther east, a cold front is approaching parts of Indiana that may cause “persistent” thunderstorms for several days starting Sunday, the agency said. The chances for thunderstorms extends east into Ohio.

 

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