3 Big Things Today, November 22, 2024

1. Grain, Soybean Futures Little Changed Overnight

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

“Rain in (the) short term and again after (the) break next week keep most of northern Brazil stable,” Commodity Weather Group said in a note to clients. 

Weather models favor precipitation in parts of southern Brazil and Paraguay that likely will offer relief from dry conditions, the forecaster said. 

Still, “disappointing showers” will stress soybeans in a quarter of southern Brazil and two-thirds of Paraguay, CWG said. 

Prices are being underpinned, however, amid signs of strong demand for U.S. grains and beans. 

Corn sales to overseas buyers rose 14% week over week to 1.49 million metric tons, the U.S. Department of Agriculture said in a report. Mexico, Japan and Colombia were among the biggest buyers of the grain in the week through Nov. 14. 

Soybean sales were up 20% to 1.86 million metric tons as China, Mexico, and the Netherlands all made large purchases, the agency said. 

Wheat sales last week totaled 549,600 metric tons, up 45% from the previous week, USDA said. South Korea, Indonesia, and Japan were among the buyers of U.S. supplies. 

Exporters yesterday reported sales of 198,000 metric tons of soybeans to China, 135,000 tons of soybeans to an unnamed country and 133,000 tons of soybean meal to the Philippines, all for delivery in the 2024/2025 marketing year that started on Sept. 1, USDA said. 

Corn futures for December delivery were up 1½¢ to $4.37¾ a bushel overnight on the Chicago Board of Trade.

Soybean futures for January delivery fell 1¾¢ to $9.76 a bushel. Soymeal was down 10¢ to $289.30 a short ton, and soy oil lost 0.37¢ to 41.91¢ a pound. 

Wheat futures for December delivery declined 1½¢ to $5.68 a bushel, and Kansas City futures were unchanged at $5.67¼ a bushel. 

2. Red Meat Output Rises 5% Annually in October

Red meat production in the U.S. rose year over year in October, led by gains in beef and pork output, according to a report from the Ag Department. 

Commercial red meat output rose 5% last month to 5.02 billion pounds, the agency said. 

Beef production increased to 2.47 billion pounds, up 5% year over year. 

Cattle slaughter gained 1% to 2.86 million head. Average weight was up 44 pounds to 1,418 pounds, USDA said. 

Pork output rose 5% to 2.54 billion pounds as hog slaughter was up 4% from October 2023 to 11.9 million head, the government said. Average live weight was up 2 pounds to 287 pounds. 

Veal production, meanwhile, dropped 21% to 3.3 million pounds, and lamb and mutton output rose 4% to 11.7 million pounds. 

In the first 10 months of 2024, commercial red meat production rose 1% from the same timeframe a year earlier to 45.8 billion pounds. 

Beef output through October was up narrowly while pork production was up 2% year over year, USDA said in its report. 

3. Snow Forecast for North Dakota, Minnesota

Snow is expected in parts of eastern North Dakota and northern Minnesota this afternoon, according to the National Weather Service. 

Only a “dusting” is in the forecast along the Canadian border, the agency said. 

More snow is expected late tomorrow, which will last through Monday. The best chance for an inch or more are along the northern U.S. border, NWS said. 

Winter weather advisories have been issued for much of northern Montana as sleet and freezing rain are forecast to start this afternoon. 

Two to 4 inches of snow is expected with some areas receiving more, and a light glaze of ice is forecast due to the freezing rain, the agency said. 

“A wintry mix of freezing rain/sleet and snow will make travel difficult at times through tonight,” NWS said. “By Saturday the wintry mix becomes primarily sleet and snow.”