3 Big Things Today, September 16, 2022
1. Grain, Soybean Futures Lower in Overnight Trading
Grain and soybean futures were lower in overnight trading amid calls for favorable weather in the U.S. and abroad.
Showers are expected in parts of the western Midwest and southern Great Lakes through Monday, and forecasts are calling for precipitation in the central Plains and northern Midwest in the middle of next week, Commodity Weather Group said in a report.
Harvest speed will increase in the next 10 days in the Delta region, and there's still no threat from tropical storms coming out of the Gulf of Mexico, the forecaster said.
In the southern Plains, where hard-red winter wheat seeding is underway, "patchy" rainfall is in the 11- to 15-day outlook will "briefly aid moisture," CWG said.
Still, weather models are showing dry weather in the Midwest next week. Parts of South Dakota, Nebraska, northwestern Iowa, southwestern Minnesota, Kansas, Illinois and Indiana will remain dry in late September, Commodity Weather Group said. The area composes 25% to 30% of Midwestern corn and soybeans.
In Brazil, meanwhile, rains this week favored southern Mato Grosso do Sol and parts of Sao Paulo and Parana, said Don Keeney, an agricultural meteorologist with Maxar.
Rain is forecast in areas of Mato Grosso, southern Mato Grosso do Sul, Minas Gerais, Sao Paulo, Parana, Santa Catarina and Rio Grande do Sul, Keeney said.
In Argentina, light rain is expected in several states including Cordoba, Santa Fe and Entre Rios, he said.
Corn futures for December delivery fell 4 3/4¢ to $6.72 ¾ a bushel overnight on the Chicago Board of Trade.
Wheat futures for December delivery lost 5 1/4¢ to $8.39 ¾ a bushel, while Kansas City futures were down 3 1/4¢ to $9.23 a bushel.
Soybean futures for November delivery dropped 7 3/4¢ to $14.43 ¾ a bushel. Soymeal declined $2.70 to $425.30 a short ton, while soybean oil fell 0.03¢ to $64.27 a pound.**
2. Export Sales Report Returns, Shows Corn, Beans Lower Week-to-Week
The weekly export sales report from the USDA finally made its return after a three-week absence.
Corn sales for delivery in the 2022-2023 marketing year dropped to 583,100 metric tons in the seven days that ended on Sept. 8 from 816,000 tons the previous week, the agency said in separate reports.
Mexico was the big buyer at 283,800 metric tons, Guatemala took 135,000 tons, unknown countries purchased 90,700 tons, Colombia was in for 28,800 tons and Panama bought 24,900 tons from U.S. supplies.
Weekly shipments were reported at 426,800 tons.
Soybean sales also were lower in the first full week of September, falling to 843,000 metric tons from 1.47 million tons a year earlier, the USDA said.
China took 441,700 metric tons, an unnamed country purchased 107,400 tons, Taiwan was in for 104,200 tons, Mexico bought 75,400 tons and Indonesia purchased 58,900 tons.
Exports for the week totaled 375,900 metric tons.
Wheat sales, meanwhile, rose to 217,300 metric tons from 192,600 tons a week earlier as Iraq bought 100,000 tons, Mexico was in for 78,300 tons, China purchased 64,700 tons, Nigeria took 46,100 tons and Vietnam was in for 41,000 tons.
The weekly total would've been higher but an unnamed importer canceled cargoes of 206,000 tons, the USDA said in its report.
The government blamed the delays in the weekly export sales report on technical issues.
3. Rain Forecast for Parts of Western, Northern Iowa Friday
Rainfall is expected in much of western and northern Iowa today, though the odds of severe weather are low, according to the National Weather Service.
Weather over the weekend may however turn severe with large hail and damaging winds possible.
"There will be additional chances for thunderstorms over most areas this weekend," the NWS said in a report early this morning. "Some strong to severe storms are possible, especially Sunday afternoon and evening southeast."
In eastern Missouri and western Illinois, storms may fire up this weekend with a couple of strong storms forecast for the region Saturday night through Monday, the agency said.
Isolated storms are expected in northeastern Oklahoma as well, though any storms that move into the area will fall apart by early afternoon. After the storms move out, dry weather will resume, the NWS said.
"Fire weather conditions may become a localized concern this afternoon across eastern Oklahoma," the agency said. "A lack of recent rainfall combined with low afternoon humidity values may allow any fire starts to spread quickly."