Corn, Beans Rise on Demand; Export Sales Stay Strong on Low Prices

September 2nd, 2016

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Category: Grains, Oilseeds

Wheats-and-Cereals450x299(Agriculture.com) – GRAINS, SOYBEANS FIND STRENGTH AS DEMAND PERSISTS

Corn and soybeans found strength overnight on continued reports of demand for U.S. inventories.

Export sales were strong for the 2016-17 marketing year for both crops as low prices spur buying. The Department of Agriculture this week, so far, reported sales of 275,000 metric tons of corn, 138,000 tons of wheat and 706,000 tons of soybeans to overseas buyers.

Low prices and a relatively weak dollar have encouraged countries that need U.S. supplies, including China, to make purchases.

Corn futures for December delivery rose 2 ¾ cents to $3.26 ½ a bushel overnight on the Chicago Board of Trade.

Soybeans for November delivery added 7 cents to $9.50 ¾ a bushel, soymeal futures for December delivery gained 40 cents to $307 a short ton and soy oil rose 0.53 cent to 33.08 cents a pound.

Wheat futures for December delivery rose 2 ½ cents to $3.97 ¼ a bushel overnight in Chicago, while Kansas City futures gained 3 ¼ cents to $4.09 ¾ a bushel.

STRONG SALES CONTINUE FOR CORN, BEANS AMID LOW PRICES, WEAKER DOLLAR

It was another strong week for export sales as overseas buyers stayed in the market for U.S. corn and soybeans.

Importers bought 1.46 million metric tons of corn for delivery in the 2016-17 marketing year that started on Sept. 1, up 40% from the prior week and 22% from the previous four-week average, according to the Department of Agriculture.

Mexico was the biggest buyer, taking 270,500 metric tons, followed by Japan at 249,200, Taiwan at 160,600 tons, South Korea at 131,200 and Algeria at 122,700 tons.

Exporters sold 1.48 million tons in the week that ended on Aug. 25, up 55% from the prior week and 38% from the four-week average, the USDA said. China was in the market for 579,100 tons, Germany bought 221,200 tons, Indonesia purchased 97,300 tons, Italy took 55,100 tons and Mexico bought 33,300 tons, the agency said.

Wheat sales for the current marketing year, which ends on May 31, weren’t as strong as corn and beans partially due to ample global supplies. Sales totaled 279,400 tons, down 26% from the previous week. Brazil took 186,500 tons, the Philippines bought 103,400 tons, South Korea took 68,000 tons, China bought 53,700 tons and Nigeria purchased 22,600 tons.

Some countries canceled previous orders, however, including Colombia, Trinidad and Vietnam.

Corn and bean sales for the 2016-17 marketing year have been strong thus far due to low prices and a relatively weak dollar that’s down 3% this year versus a basket of global currencies. For now, strong demand is keeping prices afloat as U.S. growers prepare to harvest what is expected to be record crops.

FLOODING, TORNADOES A THREAT AS HURRICANE HERMINE MAKES LANDFALL IN FLORIDA

Counties along the entire East Coast south of New York are under some sort of hurricane or flood warning as Hurricane Hermine made landfall this morning on Florida’s Gulf Coast, the first to hit land in the Sunshine State in 11 years.

The storm is “well inland” and wind speeds have slowed to 70 miles an hour. Hermine has already rolled northward into Georgia after moving through the Tampa, Florida, area, according to the National Weather Service. Heavy rain, strong winds and isolated tornadoes are still a threat in parts of west-central and southwest Florida.

In the Midwest, flooding is occurring or expected to occur in eastern Iowa and western Illinois as more rain falls in the area. Storms are expected this weekend into next week, though the threat of severe weather is still low, the NWS said.

 

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