Corn, Soybeans Rise on Bargain Hunting; Export Sales Improve Week-Over-Week

(Agriculture.com) – CORN, SOYBEANS REBOUND ON BARGAIN HUNTING AFTER THURSDAY’S DECLINE

Corn, soybeans and wheat all rose in overnight trading, bouncing back from yesterday’s losses as bargain hunters come looking for deals.

Corn closed down 5 ½ cents, soybeans dropped 31 cents and wheat was down just over a penny on Thursday. That left an opening for investors who wanted to buy into the market at low prices.

Prices yesterday plunged as the Brazilian real tanked amid a bribery scandal involving the country’s president. A weaker real makes Brazil’s agricultural products more attractive to overseas buyers, which in turn curbs demand for U.S. corn, soybeans and wheat, pushing down prices.

The currency on Thursday fell to the lowest level since December. It has since steadied while the dollar declined, once again making U.S. goods more favorable to overseas importers.

Soybean futures for July delivery rose 7 cents to $9.51 ¾ a bushel overnight on the Chicago Board of Trade. Soymeal added $2.20 to $309.70 a short ton and soy oil futures gained 0.16 cent to 32.60 cents a pound.

Corn futures gained 2 cents to $3.68 a bushel in overnight trading.

Wheat for July delivery rose 4 cents to $4.29 ¾ a bushel, while Kansas futures added 5 ¼ cents to $4.31 ¼ a bushel.

EXPORT SALES OF GRAINS, SOYBEANS ALL RISE WEEK-OVER-WEEK

Weekly sales of corn, soybeans and wheat all rose in the seven days that ended on May 11, according to the U.S. Department of Agriculture.

Corn sales for delivery in the marketing year that ends on Aug. 31 totaled 705,300 metric tons, up noticeably from the prior week and 1% from the previous four-week average, according to the U.S. Department of Agriculture.

Japan was the biggest buyer, taking 152,800 metric tons, followed by Mexico at 113,000 tons and Spain’s 96,600 tons. Taiwan bought 92,400 tons. The total would’ve been more impressive if not for a cancellation of 283,100 tons by unknown buyers, the USDA said.

For the 2017-2018 marketing year, sales totaled 168,000 tons as unknown buyers and Japan bought from U.S. inventories.

Soybean sales of 355,300 metric tons were up 10% from the prior week, according to the USDA. Still, sales were down 6% from the previous average.

China was the biggest buyer at 124,000 metric tons, Bangladesh bought 57,700 tons, Germany also bought 57,700 tons, Mexico was in for 26,500 tons and Indonesia purchased 20,300 tons. For the 2017-2018 marketing year that starts on Sept. 1, sales came in at 41,500 tons.

Wheat sales for the marketing year that ends on May 31 were up considerably from last week at 247,600 metric tons. The biggest buyer was China at 69,000 tons, followed by Nigeria at 51,000 tons. Vietnam purchased 48,000 tons, Japan bought 47,600 tons and Kenya was in for 36,800 tons.

Unknown buyers cancelled purchases of 131,500 tons, according to the USDA.

For the year that starts on June 1, sales totaled 393,100 tons with Japan, Mexico and Philippines making purchases.

MORE STORMS EXPECTED AS FLASH FLOODS, SEVERE WEATHER FORECAST THROUGH SATURDAY

The rainfall just doesn’t want to give way to summer weather as more storms are forecast a stretch from the southern Plains to the Ohio Valley.

Flood warnings and flash flood watches are in effect for all of eastern Kansas and most of eastern Oklahoma, stretching into western Missouri and Arkansas, according to the National Weather Service.

Just east in eastern Missouri and western Illinois, severe thunderstorms, flash floods and other severe weather are expected today. Springfield, Mo., is in a severe thunderstorm warning and under a flash flood warning this morning, according to the NWS.

“The threat of heavy rain and flooding will continue through the weekend from the lower Gulf Coast to the lower Great Lakes” the NWS said.

Scattered thunderstorms are possible in parts of Indiana that could drop large hail and spawn “damaging winds” on Friday, according to the agency.