1. Overnight trading lowers soybeans and grains
Overnight trading in soybean and corn futures was lower due to technical selling and optimism about rain in South America.
Investors will likely be squaring positions ahead of the end-of-the year, with some who were long in the market or bets on higher prices, selling contract and liquidating positions before December 31.
On the weather front, some “limited relief” is expected through Friday in parts of central and southeastern Brazil, Commodity Weather Group said in a report yesterday.
According to the forecaster, parts of Paraguay may receive some drought relief next Tuesday and Thursday.
“Active rain pattern in northern Brazil aids growth, but some excess rain (and) flooding concerns persist in (the) northeastern 10% to 15%” of soybean-growing areas, CWG said.
Still, it’s not all rosy as drought stress now at 35% to 40% of growing regions in Brazil, the world’s largest exporter of soybeans, and most of Paraguay will narrow only slightly next week, the forecaster said.
Overnight, wheat futures fell by a narrow margin due to slack demand in the U.S.
According to data from U.S. Department of Agriculture (data from June 1, 2012), the grain’s exports have fallen 22% since last year’s same time period.
The USDA reported last week that 15.8 million metric tonnes have been pledged by overseas buyers, which is also down 22% year over year.
Soybean futures for November delivery dropped 8½¢ to $13.59½ a bushel overnight on the Chicago Board of Trade. Soymeal fell $1.90 to $407.20 a short ton, while soy oil declined 0.18¢ to 56.49¢ a pound.
Corn futures for December delivery fell 2½¢ to $6.02¼ a bushel.
Wheat futures for December delivery lost 3½¢ to $7.80 a bushel, while Kansas City futures dropped 4¼¢ to $8.17½ a bushel.
2. China Expected To Approve Domestic GM Corn
China is likely to approve domestically produced genetically modified corn varieties following a public comment period that lasted through January 17, according to a statement from the Ministry of Agriculture and Rural Affairs.
According to the ministry, the new GM varieties were produced by China National Tree Seed Corp and China Agricultural University, Hangzhou Ruifeng Biotech and Beijing Dabeinong Biotechnology.
After the public comment period, it’s expected that the government will approve the new varieties.
Still, China doesn’t allow sowing of genetically modified corn or soybeans, though it does allow importation of such varieties for use in livestock feed.
According to the U.S. Department of Agriculture (USDA), 272.6 million tonnes of corn are expected to be produced by this Asian country, up from 260.7 millions tons a year ago.
Imports are pegged at 26 million metric tons, making China the world’s biggest buyer of the grain. It’s also the biggest soybean importer.
China will consume 214 million metric tonnes of corn to feed their livestock. This easily surpasses the 143.5 millions tons that the U.S. is planning to use for animal feed, according to USDA.
The total corn consumption in Asia is 294 million tonnes. This is less than the U.S., where it is expected to consume 313.2 million tons of corn in 2021-2022, according to the Ag Department.
3. Wind-Chill Warnings for Much of the Northern Plains
According to the National Weather Service, wind-chill advisories and warnings are in effect for all North Dakota and parts Montana, South Dakota, Minnesota, and other states this morning.
“Life-threatening cold” is expected as wind chills are forecast to drop as low as -50°F., the NWS said in a report early this morning.
“Frostbite on exposed skin (can occur) in as little as 10 minutes,” the agency said. “Don’t be outside too long. When outside, make sure you wear appropriate clothing.”
Red-flag warnings have been sent further south in Southern Plains due to extremely dry weather.
According to the NWS, winds will sustain between 20 and 30 mph with gusts up to 40 mph possible.
Today’s relative humidity is expected to drop to 19%.
The agency stated that “Critical fireweather conditions are expected this afternoon across the West-Central and Southwest Texas Panhandle” this evening.
Source: Successful Farming