Soybean Futures Decline in Overnight Trading; Wet Weather Helps Crops in South America
(Agriculture.com) – SOYBEANS LOWER IN OVERNIGHT TRADING AS RAIN FALLS IN SOUTH AMERICA
Soybeans were lower overnight as wet weather moves into growing areas in Brazil and Argentina, boosting prospects for crops in the countries.
Rainfall was reported in several corn- and soybean-growing regions in Argentina recently, offsetting warm weather in the country, Commodity Weather Group said in a report. More rain is expected in the country.
Wet weather in Brazil is helping coffee, and scattered precipitation will help corn and soybeans, the forecaster said.
Large Argentinian and Brazilian soybean and corn crops would add to the global glut after U.S. producers harvested what’s expected by the Department of Agriculture to be the largest crops in history.
Still, demand for U.S. grains and oilseeds have propped up prices. Sales of corn since Sept. 1 are up 69% from the same timeframe a year earlier, soybean sales are up 30% and wheat purchases have jumped 39%, according to the USDA.
Soybeans for January delivery fell 4 ½ cents to $10.23 ½ a bushel overnight on the Chicago Board of Trade. Soymeal futures for December delivery lost $1.50 to $313.60 a short ton and soy oil declined 0.07 cent to 36.71 cents a pound.
Corn futures for March fell 1 ¼ cents to $3.59 ¾ a bushel in Chicago.
Wheat futures for March delivery fell 3 ¾ cents to $4.13 ¾ a bushel in Chicago, and Kansas City wheat declined 2 ½ cents to $4.12 ¾ a bushel.
RAINFALL TO HELP CORN, BEANS IN SOUTH AMERICAN GROWING REGIONS
After a dry start to the growing season, rainfall in parts of South America is improving the outlook for soybeans and corn.
Scattered showers were reported in central and northeast Cordoba, Santa Fe and southern and western Entre Rios, all major soybean growing areas in Argentina, according to Commodity Weather Group. More rain is expected this weekend in central and southeastern Argentina, the forecaster said.
Precipitation in Brazil also was scattered in the center-west corn and soybean growing regions, according to CWG.
“(An) active pattern in northern Brazil this week and drier southern corn and soy (regions) in the 6- to 15-day to keep crop concerns very limited,” the weather company said.
Still, rainfall in much of Argentina and northeastern Brazil is expected to be near to below normal in the 16- to 30-day outlook, though forecasts are calling for wet weather in southern Brazil.
DANGEROUSLY COLD WIND CHILLS JOINED BY SNOWFALL THIS WEEK
The Polar Vortex will be joined by snowfall the rest of the week in much of the northern U.S., according to the National Weather Service.
Wind chills will widely fall as low as 25 degrees below zero Fahrenheit in most of the northern U.S., the NWS said. Along with the cold, snow is expected to fall.
“Snow will overspread the area during the day Friday and become heavy Friday afternoon” in parts of Minnesota, Wisconsin and Illinois, the agency said. “Snowfall amounts in excess of 6 inches are expected with this storm.”
Temperatures along Lake Michigan will drop as low as minus-30 Fahrenheit, creating extremely dangerous conditions, the NWS said. People are advised to stay indoors during the bitter cold as frostbite can form in less than 30 minutes on exposed skin.
