1. Soybeans, Grains and Grains Little Changed Overnight
The overnight movements in grain and soybean futures were very similar heading into the final day of the year.
Trading is likely to be light today as many traders start their New Year’s revelry early. Technical trading will be the main driver of price movements as investors take positions before 2021 ends.
Fundamentally, there has not been much change.
Commodity Weather Group reported that some precipitation in Brazil is weighing down prices. Showers continue in northern Brazil with up to 2 inches reaching central and southwestern Parana states, which is more than was originally anticipated.
“Drought stress briefly narrows to 25% to 30% of Brazil soy (and 75% of Paraguay),” CWG said.
Rain in central Argentina will limit drought stress to a third, but dry weather within the 11-to-15-day timeframe is forecast to increase concerns to approximately half of the country’s crop-growing areas, the forecaster stated.
In the U.S. Southern Plains, light rain and snow this weekend will have “minimal benefit,” though the threat of winterkill is low, CWG said in its report.
Harvest started in Brazil, the world’s largest exporter of soybeans, a bit earlier than normal.
According to the U.S. Department of Agriculture (USDA), South American producers will produce a record-breaking 144,000,000 metric tons of soybeans in 2015. This is an increase from the 138 million produced a year prior.
The USDA earlier this month stated that exports have been pegged at 94,000,000 metric tons, an increase of 81.7 million a year ago.
Soybean futures for November delivery rose 1½¢ to $13.40 a bushel overnight on the Chicago Board of Trade. Soymeal gained 60¢ to $404.30 a short ton and soy oil added 0.3¢ to 56.38¢ a pound.
Corn futures for December delivery fell ¾¢ to $5.95¼ a bushel.
Wheat futures for December delivery fell 4¢ to $7.75¾ a bushel, while Kansas City futures lost 1¢ to $8.11¾ a bushel.
2. Corn Export Sales Rise Week-to-Week
According to USDA, bean sales declined to a low-year marketing level while export sales of corn were up week-to-week.
According to a report by the agency, corn sales to overseas buyers rose 27% and reached 1.25 million metric tonnes. Still, that’s down 2% from the prior four-week average.
Japan bought 385,800 metric tonnes, Canada took 200.100 tons, unknown buyers were in 163,800 tons, Mexico purchased 149,100 tons and Guatemala took 94,000.
The USDA reported that exports for the week were reported as 921,400 metric tonnes, down 16% compared to the previous week.
The government reported that soybean sales dropped to 524,000 tonnes, down 35% from last week and 56% from the average.
This is the lowest total for the marketing year that began on Sept. 1.
China purchased 432 800 metric tons of U.S. bean beans. Turkey bought 119,500 tonnes, the Netherlands purchased 83,000 tons, Thailand bought 77,400 tons, while the U.K. purchased 66,000 tonnes.
The total would have been higher if unnamed nations had canceled cargoes totaling 494,500 metric tonnes, the agency said.
Last week’s wheat sales were reported at 199.500 metric tons. This is a 53% decrease from the previous week and 43% below the average for this time.
Taiwan bought 110,000 metric tonnes, Guatemala purchased 35,600 tonnes, Nicaragua bought 30,000 Tons, Haiti took 27,500 Tons, and Mexico was in for 19,100 Tons.
Unknown countries banned 70,600 tonnes of shipment, reducing the total.
However, exports for this week increased 76% compared to the previous week to 335,000 tonnes, according the USDA’s report.
3. Winter-Storm, Windchill Warnings in Central U.S.
Weather maps look like Christmas lights and should be taken down as we move into the new year.
According to the National Weather Service (NWS), winter-storm warnings and watches have been issued for large parts of the central Midwest.
In eastern Nebraska and western Iowa, up to 5 inches of snow may fall tonight and all day tomorrow with wind gusts as high as 35 mph, the NWS said in a report early this morning.
Windchills will fall as low as -20°F.
The NWS stated that a winter storm warning will be in effect for central and eastern Iowa at 6 a.m. tomorrow and last until midnight.
Forecasters predict snowfalls of up to 8 inches and wind gusts of 35 mph. Travel will be difficult due to the visibility being reduced by blowing snow. According to the agency, windchills will also create dangerously cold conditions.
Windchills in Dakotas will drop dramatically from noon today.
In northern North Dakota, windchills will fall as low as -55°F., the NWS said.
The agency stated that hypothermia and frostbite can be dangerous and can occur in as little as five seconds at these temperatures.
Source: Successful Farming