(Agriculture.com) – GRAINS, BEANS SLIGHTLY LOWER OVERNIGHT ON STRONG YIELDS, WEAK DEMAND
Grains and soybeans were slightly lower again in overnight trading on stronger yields and signs of weak demand in corn.
Yields in Missouri, Illinois and Indiana have been reportedly strong and it’s possible that national yields will be close to projections made by the U.S. Department of Agriculture earlier this month. Those estimates were widely panned as being too higher.
In export news, South American competition is eating away at U.S. sales, further depressing prices, analysts said.
The weather looks favorable for harvest the next two weeks after rain last week kept growers out of fields. Forecasters said little to no rain is expected in the next 10 to 14 days, which should allow producers to accelerate collection of their crops.
Corn futures for December delivery fell a penny to $3.51 ½ a bushel overnight on the Chicago Board of Trade.
Soybeans for November delivery declined 2 ¾ cents $9.56 ¾ a bushel overnight. Soymeal futures lost 90 cents to $310.60 a short ton and soy oil fell 0.09 cent to 32.73 cents a pound.
Wheat for December delivery dropped 1 ½ cents to $4.53 ½ a bushel in Chicago while Kansas City futures declined 2 cents to $4.51 a bushel.
EXPORT SALES OF U.S. CORN WOEFUL LAST WEEK AS SOYBEAN SALES SURGE
Corn sales missed expectations while soybeans topped forecasts in the week that ended on Sept. 21.
Exporters sold 320,200 metric tons of corn last week, according to the U.S. Department of Agriculture, missing expectations for sales of 400,000 to 700,000 tons.
Mexico was the biggest buyer but only took 95,200 metric tons. Peru was next at 82,500 tons, followed by Colombia at 60.700 tons, Japan at 36,200 tons and Costa Rica, which purchased 15,500 tons, the USDA said.
Soybean sales totaled 2.98 million metric tons, easily topping forecasts from analysts for sales of 1.5 million to 2 million tons.
China was, as usual, the biggest buyer at 1.4 million tons, followed by unknown buyers who purchased 1 million tons. Mexico bought 200,900 tons, Thailand took 141,600 tons and Taiwan purchased 65,500 tons, according to the USDA.
Wheat sales totaled 435,600 tons, up 42% from the prior week and 14% from the prior four-week average. The Philippines was the big buyer at 94,500 tons, followed by the Dominican Republic at 61,000 tons, Japan at 60,400 tons, Taiwan at 54,100 tons and Bangladesh at 47,300 tons, the government said.
MIDWEST WEATHER MAPS SHOW NO RAIN FOR AT LEAST 10 DAYS, SHOULD SPEED HARVEST
The weather maps are again quiet in the Midwest as little or no rain is expected anywhere.
Commodity Weather Group said in a report that the weather will favor the corn and soybean harvest for at least the next 10 days.
Only the northwestern third of the Corn Belt is expected to see any rain delays for about the next two weeks, according to the forecaster.
Two cold fronts are inbound that will change conditions from unusually warm to more fall-like conditions, the National Weather Service said. The front will sweep from the upper Midwest to the Mid-Atlantic that will cause temperatures to decline, the NWS said.
