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3 Big Things Today, September 24, 2021

Export sales disappoint.

1. Corn Futures Lower in Overnight Trading

Soybean, corn, and wheat futures traded lower overnight Friday.

Bob Linneman, Kluis Advisors, says that investors are watching debt developments in China.

“Thursday’s trade ended with corn and soybean prices quietly higher. Worrisome reports from China suggest soybean crush plants have been ordered to shut down, due to the government reducing electricity supplies to meet new emission targets. It does seem odd to shut down these kinds of facilities, since they are directly related to food supply,” Linneman stated in a note to customers.

Linneman added, “The stock market is also nervous about the impact of a very large real estate company in China possibly going into bankruptcy. In addition, the Chinese government voiced a very strong negative comment about cryptocurrency. These outside market headlines could impact grains in the short term.”

Linneman says, “The corn weekly chart looks poised to etch an inside week, while the soybean weekly chart is close to scoring a ‘doji candle.’ Although the soybean chart is not as prominent because it was not a major low scored this week, it still has the potential to swing momentum toward the bull camp if prices can start out strong next week.”

Overnight, the Dec. corn futures are 2¾¢ lower at $5.26. March futures are 3¼¢ lower at $5.33. May corn futures are 3¾¢ lower at $5.37. 
November soybean futures are 2¾¢ lower at $12.81. 

Jan. soybean futures are 2¾¢ lower at $12.91. March soybean futures are 2¾¢ lower at $12.94.

Dec. wheat futures are 3¼¢ lower at $7.14.
Dec. soymeal futures are $0.10 per short ton higher at $340.20.

Dec. soy oil futures are 0.29¢ lower at 56.73¢ per pound.


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2. Weekly Corn Export Sales Miss Expectations

On Thursday, the USDA released its weekly Export Sales Report. These are sales recorded in the period of September 10-16, 2021.

Corn sales, mainly to Canada, fell below the trade’s expectations. Meanwhile, soybean sales, mainly to China, were offset by some reductions.

Here are the totals of the USDA’s Weekly Export Sales Report Thursday:

Corn = 373,000 metric tons (mmt.) vs. the trade’s expectations of 300,000 to 800,000 mt. 

Soybeans = 912,900 mt. vs. the trade’s expectation of 500,000 to 1.10 mmt.

Wheat = 355,900 mt. vs. the trade’s expectation of 250,000 to 600,000 mt.

Soybean meal = 261,400 mt. vs. the trade’s expectation of 30,000 to 175,000 mt.


3. Above-Average Temperatures for the Midwest Friday

In the Midwest, delightful weather is on tap for Friday, according to the National Weather Service (NWS).

“For the central U.S., comfortable temperatures today are set to be replaced by well above average temperatures on Saturday. This is especially the case across the Northern Plains with highs jumping into the 80s (°F.) by Saturday (nearly 20°F. warmer than today),” the NWS forecaster stated in a daily report.

“A slow moving cold front pushing across the Northeast is expected to continue producing moderate to locally heavy rain across parts of New England today, with a few severe thunderstorms not out of the question as well. As the frontal boundary reaches central Maine on Saturday, it is expected to stall and lead to lingering showers. Widespread rainfall totals of 1 to 2 inches, with locally higher amounts, may lead to isolated instances of flash flooding,” according to the NWS report Friday.

Elsewhere, an unsettled weather pattern is in store for the Southwest because of a nearby upper-level low pressure system helping funnel monsoonal moisture into the region. Scattered showers and thunderstorms are forecast to potentially impact parts of Arizona, southwest New Mexico, and the Low Desert of Southern California.

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