3 Big Things Today, December 6, 2024

1. Soybeans, Grains Little Changed Overnight

Soybean and grain futures were little changed in overnight trading as investors weigh signs of demand for U.S. agricultural products against favorable weather in South America. 

Exporters sold 136,000 metric tons of U.S. soybeans to China for delivery in the 2024/2025 marketing year, the Department of Agriculture said in a report yesterday. 

That follows sales of 30,000 tons of soybean oil to South Korea and an additional 134,000 tons of soybeans to China that were also announced this week. 

About 21.7 million metric tons of soybeans have been exported since the start of the marketing year on Sept. 1, USDA data show. That’s up 19% from the same timeframe last year. 

Corn sales are up 33% year over year to 11.4 million metric tons. 

Wheat sales since the start of the grain’s marketing year on June 1 are now at 10.8 million metric tons, a 33% increase from the same period a year ago. 

Weighing on futures, however, is favorable weather in parts of Brazil, the world’s largest exporter of soybeans. 

Drier weather is forecast in the 6- to 15-day outlook for parts of Parana, a major growing state in the South American country, which will curb excessive moisture after heavy rains in the near term, Commodity Weather Group said in a note to clients. 

Rain is likely in northern Brazil in week two, which will boost crop prospects, the forecaster said. 

“Southern Brazil (and) Paraguay slowly dry back out after wet (conditions) short-term,” CWG said. “Rains support yield potential in the north.” 

Soybean futures for January delivery gained ¾¢ to $9.94½ a bushel overnight on the Chicago Board of Trade. Soymeal fell $1.50 to $289.60 a short ton and soybean oil was up 0.39¢ to 42.7¢ a pound. 

Corn futures for March delivery rose 1¢ to $4.36 a bushel. 

Wheat futures for March delivery fell 1½¢ to $5.56¾ a bushel, while Kansas City futures were down ¾¢ to $5.51¾ a bushel. 

2. Corn Sales for Export Surge, Soybean Sales Decline

Sales of corn to overseas buyers jumped week to week while soybean sales declined, according to the Ag Department.

Corn sales in the seven days that ended on Nov. 28 jumped to 1.73 million metric tons, up 63% from the previous week and 4% from the prior four-week average, the agency said. 

Mexico was the big buyer at 392,400 metric tons, followed by Japan at 357,700 tons, and an unnamed country at 283,600 tons. South Korea was in for 212,700 tons and Costa Rica bought 84,200 tons. 

The total would’ve been higher, but Guatemala canceled orders for 27,700 tons. 

Exports for the week rose 3% to 1.05 million tons, USDA said. 

Soybean sales fell 7% week over week to 2.31 million metric tons, the government said. That’s still up 17% from the average for this time of year. 

China bought 669,700 tons, an unknown destination took 432,700 tons, Spain was in for 352,400 tons, Mexico purchased 181,000 tons, and Egypt bought 175,900 tons. 

Ireland canceled orders for 21,500 tons of U.S. beans. 

Soybean exports for the week rose 17% week to week to 2.43 million tons, the agency said. 

Wheat sales were up modestly, rising 3% on a weekly basis to 378,200 metric tons, USDA said. That’s still down 10% from the prior four-week average. 

Mexico bought 151,900 tons, South Korea was in for 136,000 tons, Venezuela purchased 34,100 tons, and Algeria took 28,500 tons. 

The Leeward and Windward Islands canceled orders for 35,700 tons and Italy nixed shipments of 20,400 tons. 

Exports of U.S. wheat fell 26% to 322,400 metric tons, USDA said in its report. 

3. Rain Expected in Oklahoma, Arkansas This Weekend

Weather maps are relatively quiet heading into the first full weekend of December. 

Rainfall is expected in parts of eastern Oklahoma and western Arkansas throughout the weekend, the National Weather Service said in a report early this morning. 

Winds are expected to increase in the area ahead of a cold front moving in early next week, the agency said. 

“Greater precipitation potential is forecast Saturday night through the day Sunday,” NWS said. “Dry weather resumes area-wide early next week.”

In central Indiana, temperatures are forecast to drop into the single digits overnight, the agency said.