1. Corn, Beans Higher Overnight on Wet Weather Forecasts
Corn and soybeans were higher in overnight trading amid threats of further wet weather this weekend.
About 83% of U.S. corn was seeded as of Sunday, behind the prior five-year average of 99% for this time of year, while 60% of soybeans were in the ground, well behind the normal 88%, the USDA said earlier this week.
Growers likely accelerated planting throughout the week, which was dry in much of the Corn Belt. Still, rain is expected to start today from Kansas to Michigan, though reports say the precipitation will be scattered.
As much as six times the normal amount of rain has fallen in parts of the Midwest in the past 30 days, according to the National Weather Service.
Corn futures for May delivery rose 5¼¢ to $4.47¼ a bushel overnight on the Chicago Board of Trade.
Wheat for May delivery added 2¢ to $5.37½ a bushel in Chicago, while Kansas City wheat gained 2½¢ to $4.70¾ a bushel.
Soybeans for May delivery rose 3¼¢ to $8.91¼ a bushel overnight. Soy meal added $2.80 to $324.50 a short ton, while soy oil fell 0.07¢ to 27.95¢ a pound.
2. Export Sales of Corn Rise Week to Week, Still Low; Soybean Sales Decline
Export sales of corn rose week to week but were still fairly low, while soybean sales plunged, according to the USDA.
Corn sales for delivery in the 2018-2019 marketing year that ends on August 31 totaled 168,500 metric tons. That’s up from a net loss the previous week, but down 64% from the prior four-week average, the USDA said.
Japan was the big buyer at 164,900 metric tons, followed by Colombia at 94,600 tons ,and Taiwan at 58,300 tons. Canada took 13,600 metric tons and Costa Rica bought 11,100 tons.
An unknown customers canceled a shipment for 184,500 tons. For 2019-2020, sales totaled 94,100 tons.
Conspicuously absent from the tally was Mexico, which is the largest buyer of the U.S. corn. The country was, at the time, involved in a trade spat with the U.S. after the Trump administration threatened to impose import tariffs on Mexican goods.
Soybean sales last week totaled 255,900 metric tons, down 50% from the previous week and 44% from the four-week average, the USDA said.
Egypt was the biggest buyer at 110,000 tons, followed by Japan at 87,500 tons, and Taiwan at 77,900 tons. China took 74,700 tons and the Netherlands bought 38,500 tons. The total would’ve been higher but an unknown country canceled a shipment for 185,200 tons, the government said.
For 2019-2020, sales totaled 275,200 metric tons.
Wheat sales for the 2019-2020 marketing year that started on June 1 were reported at 47,600 metric tons as Japan bought 112,100 tons, Mexico took 75,300 tons, Taiwan was in for 56,700 tons, Iraq purchased 55,000 tons, and Vietnam bought 30,000 tons.
Reductions included an unknown customer who nixed a cargo for 189,200 tons, the Philippines, which canceled a shipment for 50,000 tons, and South Korea, which canceled a purchase of 48,600 tons, the USDA said.
3. Storms Expected in Parts of Southern Plains Today, Into the Weekend
Storms are expected in parts of the Southern Plains today and tomorrow, while some precipitation is forecast for the Midwest, according to the National Weather Service.
Afternoon and evening storms are forecast in eastern Colorado into Kansas throughout the evening, the NWS said in a report early this morning. Hail from 1½ to 2½ inches is possible, as are stronger winds with smaller hail.
More thunderstorms are expected to follow into next week.
Farther north, in Iowa and northern Illinois, it’ll be breezy this afternoon before thunderstorms roll into the area.
The NWS is forecasting a “marginal risk” for severe storms later tonight that will contain large hail. At times, heavy downpours are possible, as scattered thunderstorms are expected after midnight.
Area rivers are already flooding, so any rain could worsen conditions, the agency said. The storms are expected to carry into the weekend, with some turning severe.