Beans, Corn Higher In Overnight Trading, Export Sales Strong Week-To-Week

October 21st, 2016

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Category: Grains, Oilseeds

Farmland450x299(Agriculture.com) – SOYBEANS, CORN FUTURES RISE ON STRONG EXPORT SALES. Soybean and corn futures were higher in overnight trading as export sales surged last week.

Sales of soybeans in the week that ended on Oct. 13 were up 42% from the prior week, the U.S. Department of Agriculture said in a report. Corn sales rose 17% week-over-week.

Exporters reported sales this week of 192,000 metric tons of soybeans to unknown buyers for delivery in the current marketing year that started on Sept. 1, the USDA said yesterday. Exporters also sold 114,000 tons of wheat, also to unknown buyers, including 41,000 tons of soft-white wheat and 73,000 tons of hard-red spring wheat for delivery in the 12 months that started on June 1.

On Wednesday the USDA reported sales of 185,000 tons of beans, and on Tuesday the department said China bought 706,500 tons from U.S. inventories.

Soybeans for November delivery rose 2 ½ cents to $9.78 a bushel on the Chicago Board of Trade. Soymeal futures for December delivery added $1.30 to $305.90 a short ton and soy oil fell 0.09 cents to 34.96 cents a pound.

Corn futures for December delivery gained 1 cent to $3.52 a bushel in Chicago.

Wheat futures for December delivery rose ½ cent to $4.17 ½ a bushel in Chicago, while Kansas City futures added 1 ¾ cents to $4.24 ¾ a bushel.

EXPORT SALES JUMP SPURRED BY LOWER PRICES AS BUYERS IGNORE STRONG DOLLAR

Low prices for U.S. corn and beans is certainly drawing overseas importers as export sales increased week-to-week, and not even the dollar at a seven-month high can slow down buyers.

Corn sales in the week through Oct. 13 totaled 1.02 million metric tons, up from the prior week, as unknown destinations bought 226,000 metric tons, Colombia purchased 197,1000 tons, Peru took 114,000 tons, Saudi Arabia bought 74,900 tons and Vietnam took 74,500 tons, according to the USDA.

Sales of U.S. soybeans totaled 2 million tons, well above both the prior week average and the four-week average. China was the biggest buyer, followed by the Netherlands, Spain, Mexico and Japan, the government said.

Actual shipments of soybeans totaled 2.67 million tons, a marketing year high, and a 71% jump from the prior week, according to the USDA. China was the biggest importer, taking in more than 2.1 million tons.

Wheat sales totaled 513,800 tons last week, up 5% from the previous week and 3% from the four-week average. Mexico was the biggest purchaser, buying 98,900 tons, Japan bought 80,400 tons, South Korea purchased 80,000 tons, Algeria took 61,700 tons, the Philippines bought 51,000 tons and Taiwan bought 49,200 tons.

Sales have continued to be strong thanks to extremely low prices for corn, beans and wheat. The dollar reached the highest since March this week, but that doesn’t seem to have curbed interest in U.S. supplies.

WEATHER TURNS COLDER AS FROST WARNINGS ABOUND

Warm temperatures early this week have given way to cold weather as frost warnings have been issued in several counties in Iowa, Missouri, Illinois and Wisconsin.

Frost was expected to form overnight and stick around until the early morning in a large chunk of land encompassing parts of the four states, the National Weather Service said in a report on Friday. Temperatures overnight fell into the low-30s in the area, according to the NWS.

The cool weather will extend into the eastern U.S. that also saw some unusually warm temperatures earlier this week.

“The recent summer-like temperatures in the eastern U.S. will come to an abrupt end on Friday as a strong cold front sweeps across the region,” the NWS said. “Heavy rain and gusty winds will accompany the front.”

 

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