1. Weak Export Sales Cause Soybeans, Grains to Drop
After a disappointing export-sales report by the U.S. Department of Agriculture, soybean and grain futures fell overnight.
The USDA reported that sales of wheat and soybeans to overseas buyers fell week-to-week in the seven days ending Dec. 30.
According to a report by the agency, export sales of soybeans fell by 382,700 tonnes and 63% respectively, compared to the previous week.
This is the lowest level of marketing since Sept. 1.
China bought 353,900 tonnes of U.S. soy beans, Mexico took 183,000.900 tons, Spain was in for 141,100 tons, the Netherlands bought 68,000 tons, and Germany bought 64,000.00 tons, according to the USDA. Unknown countries cancelled cargoes worth 625,200 metric tonnes.
Exports were reported at 1.74 Million Metre Tons, an increase of 1% week-to–week.
Wheat sales dropped to 48,600 tonnes, the lowest level since June 1, when the grain’s marketing season began.
This is also down 76% week to week and 87% compared to the prior four-week average, according the government.
Italy bought 15,400 tonnes, while an unnamed nation purchased 13,900 tons. Mexico purchased 9,600 tons, Mexico bought 9,600 tons, and the Dominican Republic bought 3,200 to 3. Thailand bought 3,000 tons. The week’s exports dropped 37% to 210.900 tons
The USDA reported that corn sales fell by 80% from the week before and 81% from the average for the past four weeks.
Canada was the biggest buyer at 150,500 tonnes. Mexico was next at 115,100 tons. Colombia was next at 90,500. Japan purchased 81.500 tons. Guatemala was last at 10,500 tons.
The total would have been greater if unnamed destinations had not canceled shipments in excess of 212,500 tons. The government reported that exports for the week rose 7% to 985 100 metric tons.
Soybean futures for March delivery dropped 9 3/4¢ to $13.77 ½ a bushel overnight on the Chicago Board of Trade. Soymeal fell $3.70 to $407.30 a short ton and soy oil lost 0.04¢ to 58.86¢ a pound.
Corn futures for March delivery fell 4 1/2¢ to $5.99 ¼ a bushel.
Wheat futures for March delivery lost 9 1/4¢ to $7.36 ¾ a bushel, while Kansas City futures plunged 12 3/4¢ to $7.55 ¾ a bushel.
2. Brazil Soybean Crop is No Longer Expected To Top Record
Due to the dry weather in South American, Brazilian soybean crop estimates have been slashed.
AgRural announced that the Brazil soybean crop won’t be a record, and will instead reach about 133.4million metric tons. This is a decrease from the prior outlook of 144.7 million.
Nine of the ten highest temperatures earlier in the week were in Rio Grande do Sul. It is the third-largest country bean producer. The temperature reached as high at 39 degrees Celsius (102.2 Fahrenheit), AgRural analyst Daniele Siqueira tweeted.
She stated that 15% of the crop was already in bloom and that January and February are “makeor-break” months.
Parana, which is the country’s second-largest state producer, has half the crop and fills pods. Siqueira said that “losses are enormous”.
AgRural stated that very little rain fell in Rio Grande do Sul or western Parana over the past 15 days.
Siqueira stated that while recent precipitation was welcomed, it wasn’t enough to prevent the soybean crop from failing in western Parana and the loss in potential in other parts of southern Brazil. “The soybean situation is worse in Rio Grande do Sul, too, where the first corn crop failed.”
According to the consultancy, precipitation was more common in eastern and central states. AgRural data indicate that central Brazil will receive a lot of rain in the next 10 day.
AgResource said that it now expects harvest to be around 131,000,000 metric tons, down from a prior outlook of 141,000,000 tons, Reuters reported.
The U.S. Department of Agriculture expects Brazil to produce 144,000,000 metric tons of soybeans during the 2021-2022 marketing years. However, this estimate comes from the December World Agricultural Supply and Demand Estimates report.
The USDA will update its estimates on January 12.
3. Wind-Chill Warnings, Advisories In Effect on the Northern Plains
According to the National Weather Service (NWS), wind-chill advisories have been issued in the northern Plains, as well as for a portion of central Illinois.
A wind-chill warning has been issued in North Dakota and western Minnesota.
“Four major cities in western and central North Dakota saw temperatures in the teens under zero yesterday, making it one the coldest days in decades,” the NWS reported this morning. “This was the sixth time in this century that Bismarck’s daily high temperature was below 10 below. It is also the first such event in more than four years.”
Today’s wind chills could drop to minus-50° Fahrenheit. The warning will be in effect until noon.
According to the agency, wind chill values in northern and central Illinois will range between 20 and 25 degrees below zero.
According to NWS maps, western Michigan has a winter storm warning. This is because up to 6 inches (or more) of lake-effect snow could fall in some counties along Lake Michigan.
The agency stated that snow showers that produce accumulations up to a half-inch to one-inch per hour will affect the western halves in Mason, Oceana, and Muskegon Counties. “Snow-covered and slippery roads can be expected.”
Source: Successful Farming