3 Big Things Today, September 26
1. Soybeans Highest in a Month on Bargain Hunting, Excessive Rain
Soybeans rose to the highest price in more than a month overnight and corn was slightly higher, as investors jump back into the markets amid harvest delays due to wet weather.
As much as six times the normal amount of rain has fallen for this time of year in much of the northern Corn Belt, according to the National Weather Service.
Up to 8 inches of rain fell in the past seven days in a band stretching from southeastern South Dakota to southern Wisconsin and northern Illinois, according to NWS maps. That’s keeping some farmers from collecting their corn and soybean crops and could mean some quality issues may be developing.
Despite the rainfall, the USDA’s Crop Progress Report showed 14% of soybeans were harvested as of Sunday, up from 6% the prior week and ahead of the prior five-year average of 8%. About 16% of corn was collected, up from 9% seven days earlier and the 11% average.
Soybean futures for November delivery rose 7¾¢ to $8.53½ a bushel overnight on the Chicago Board of Trade. Soy meal futures were up $2.50 to $311.70 a short ton, and soy oil added 0.22¢ to 28.87¢ a pound.
Corn futures for December delivery rose 1¢ to $3.64¾ a bushel overnight.
Wheat added 4¼¢ to $5.25 a bushel overnight, while Kansas City futures gained 4¾¢ to $5.26¾ a bushel.
2. Deadline to Sign Trade Deal With Canada Approaches With No Agreement in Sight
With the unofficial deadline to strike a deal on a renewed North American Free Trade Agreement just days away, things aren’t looking too rosy between U.S. and Canadian negotiators.
U.S. Trade Representative Robert Lighthizer, who wants to have an agreement signed by September 30, told the U.S. Chamber of Commerce that he wants to strike a compromise with Canada but isn’t willing to sign a bad deal. He said yesterday at a separate meeting in New York that Canada isn’t making concessions in areas he thinks are essential.
Instead, he’s said the U.S. likely will make a bilateral deal with Mexico and “if Canada comes along later, then that’s what will happen.”
Inking a bilateral trade agreement with Mexico is bumping against time constraints, as the sides want to have a deal in place before President Enrique Pena Nieto leaves office.
Having an agreement in place before he leaves benefits the current government and that of President-elect Lopez Obrador, a leftist opposition candidate, Reuters reported, citing interviews with more than a dozen people familiar with the talks.
In Canada, meanwhile, Prime Minister Justin Trudeau said he’s not worried about time lines and, instead, is focused on not escalating the trade dispute with the U.S.
He said that Canada “cannot simply accept punitive tariffs without a bit of balance.”
3. Freezing Weather Expected in Parts of Western Corn Belt, More Rain Headed to Iowa
Freezing weather is expected in parts of western Nebraska, South Dakota, and North Dakota as temperatures in the states will range from the upper 20˚F. to about 30˚F., according to the National Weather Service.
Any plants still growing are at risk from the freeze, the NWS said in a report early Wednesday morning.
In eastern Iowa, meanwhile, flooding is still a problem along several rivers and streams after excessive rain the past week left waterways over their banks.
Cold weather and more rainfall are on the way starting Friday and lasting into next week.
“Patchy frost will be possible late Friday night and early Saturday morning north of Highway 30,” the NWS said in its report. “There will be potential for thunderstorms from Sunday afternoon through Tuesday.”