3 Big Things Today, December 13, 2024

1. Soybean Futures Lower in Overnight Trading

Soybean futures were lower in overnight trading amid disappointing export sales. 

Sales of U.S. beans totaled 1.17 million metric tons in the seven days that ended on Dec. 5, the Department of Agriculture said in a report. That’s down 49% from the previous week and 42% from the prior four-week average, the agency said. 

China was the big buyer at 705,000 tons, followed by Spain at 245,800 tons and Mexico at 156,500 tons, USDA said. 

Grain sales also plunged week to week. 

Corn sales dropped to 946,900 tons, down 45% from the week prior and 32% from the average. Wheat sales came in at 290,200, down 23% and 31% from the previous week and the average, respectively.

It’s not all bad news on the export front, however, as overseas buyers since the start of the marketing year on Sept. 1 have agreed to purchase 37.3 million metric tons of U.S. soybeans, up 12% year over year, USDA data shows. 

Corn sales since the beginning of September now stand at 35.1 million metric tons, up 29% from the same period last year. 

Wheat sales since the start of the grain’s marketing year on June 1 are at almost 16 million metric tons, up 10% year over year.

Soybean futures for January delivery fell 4¢ to $9.92 a bushel overnight on the Chicago Board of Trade. Soymeal lost $2.10 to $287.40 a short ton and soybean oil was up 0.12¢ to 42.79¢ a pound. 

Corn futures for March delivery declined ½¢ to $4.43 a bushel. 

Wheat futures for March delivery rose 1¼¢ to $5.59¾ a bushel, while Kansas City futures gained 1¼¢ to $5.64 a bushel. 

2. Wheat Shipments to Jump as Russia, EU Exports Fall

U.S. wheat exports are forecast to jump year over year amid weaker exports from Russia and the European Union, the Ag Department said in monthly wheat outlook report released late yesterday.

Shipments of the grain likely will total 850 million bushels in the 2024/2025 marketing year that ends on May 31, the agency said in a monthly supply and demand report on Tuesday

That’s up from the previous outlook for 825 million bushels and well ahead of the previous year’s 707 million bushels. 

From June through October, wheat exports were reported at 366 million bushels, up 35% from the same timeframe last year, USDA said in its outlook report.

The average farm price for wheat is $5.60 based on prices reported to the USDA’s National Agricultural Statistics Service (NASS) and expectations for prices through the end of May. 

“Futures prices have declined slightly amid improvements in winter wheat conditions, but global ending stocks are still projected at a nine-year low,” the government said. 

3. Ice Storm Warning Issued for East-Central Iowa

A rare ice storm warning has been issued for several counties in east-central Iowa, according to the National Weather Service. 

“Significant icing (is) expected” in the region starting at midnight tonight and lasting until 3 p.m. Saturday, the agency said. Accumulations of two tenths to three tenths of an inch are possible. 

Winds will gust up to 30 mph during the freezing rain, which could lead to falling tree branches. 

The good news is forecasters expect temperatures to rise rapidly from south to north late Saturday morning, which will help melt ice quickly once the rain ends, NWS said. 

Winter weather advisories have been issued for the rest of Iowa and parts of several other states including Nebraska, Kansas, Missouri, Illinois, Minnesota, and a sliver of South Dakota. 

In eastern Nebraska and western Iowa, mixed precipitation is forecast as ice and snow fall. Snow and ice are expected to begin mid-Friday and last until early Saturday morning, NWS said.