Wheat Little Changed Overnight; Export Sales of Soybeans Plunge Week To Week

(Agriculture.com) – WHEAT LITTLE CHANGED AFTER PLUNGING THURSDAY ON RISING GLOBAL SUPPLY

Wheat was little changed after plunging yesterday amid negative supply-and-demand fundamentals.

Prices for all ags were little changed overnight, in fact, as investors aren’t quite sure which way to turn.

Global stockpiles are expected to get bigger while, domestically, rainfall has kept growers from planting their crops. Still, investors are seemingly used to planting delays and know U.S. growers can sow millions of acres in a very short time.

Globally, wheat production in the 2016-2017 marketing year that ends May 31 is expected to total 751.4 million metric tons, a record, while inventories are forecast at 252.3 million tons, also the highest ever, according to the U.S. Department of Agriculture.

Wheat futures for May delivery was unchanged at $4.21¾ a bushel overnight on the Chicago Board of Trade. Kansas City wheat added a penny to $4.16½ a bushel in Chicago.

Corn futures for July delivery fell ½¢ to $3.63¾ a bushel overnight.

Soybean futures added 2½¢ to $9.59¼ a bushel in Chicago. Soy meal rose 1¼¢ to $313.10 a short ton, and soy oil lost 0.01¢ to 32.11¢ a pound.

EXPORT SALES OF SOYBEANS PLUMMET IN WEEK THAT ENDED ON APRIL 13

You know it’s a bad week for soybean export sales when China takes less than 100,000 tons.

Soybean exporters sold 211,000 metric tons of soybeans in the week that ended on April 13, the U.S. Department of Agriculture said in a report. That’s down 48% from the prior week and 60% from the previous four-week average.

The Netherlands was the biggest buyer at 160,800 metric tons, according to the USDA. China, usually the biggest customer, took only 75,100 metric tons from U.S. supplies.

Canada bought 24,100 tons, Japan purchased 24,000 tons, and Cuba took 21,600 tons.

Wheat sales declined, though not as much, falling 2% weekly and 12% from the four-week average, according to the government.

Indonesia was the biggest buyer at 73,900 tons, Japan bought 71,900 tons, Mexico took 69,600 tons, South Korea purchased 69,400 tons, and Nigeria was in for 58,800 tons, the USDA said.

Corn sales for delivery in the marketing year that ends on August 31 gained 3% from the prior week, but were down 23% from the average.

Japan bought a healthy 339,300 tons, South Korea purchased 198,700 tons, Peru was in for 94,300 tons, Taiwan bought 75,200 tons, and Nigeria took 50,000 tons, according to the USDA.

STORM BLOWING THROUGH SOUTHERN PLAINS BRINGING HEAVY WIND, HAIL, FLOODING

The weather maps in Oklahoma, southeastern Kansas, and southwestern Missouri are lit up like a Christmas tree this morning as storms move through the area.

Severe thunderstorm warnings, flood advisories, and special weather statements abound in the area as a strong system is pushing east through the region.

Severe weather was reported in a couple of counties in western Oklahoma and the Texas panhandle, according to the National Weather Service. Wind gusts of up to 60 mph and half-dollar-size hail were reported. A severe weather warning is also in effect for the Fort Smith, Arkansas, region.

Oklahoma City is in a severe thunderstorm watch this morning, while Tulsa and the surrounding areas are in a flood watch through this evening. As much as 4 inches of rain are expected today and tonight.

“Recent rainfall across northeast Oklahoma and northwest Arkansas has led to saturated soils and rises in area streams and rivers,” the NWS said in a report early Friday. “Showers and thunderstorms will bring additional heavy rainfall tonight through Friday night. Most of this rainfall is expected to run off and will likely cause flash-flooding concerns as well as river flooding.”