3 Big Things Today, August 2, 2024

1. Soybeans, corn higher in overnight trading

Soybean and corn futures were higher overnight on technical buying and on signs of demand for U.S. supplies. 

Investors who were short the market, or had bets on lower prices, likely bought back contracts and closed their positions after soybean futures fell to the lowest level in almost four years. 

U.S. exporters sold 132,000 metric tons of soybeans to China for delivery in the 2024/2025 marketing year that starts on Sept. 1, the Department of Agriculture said in a report yesterday. 

That's the first sizable sale to China, the world's largest importer of soybeans, in almost a month. 

USDA on Wednesday reported sales of 104,572 tons of corn to an unnamed country for delivery in the next marketing year. 

Still, global soybean supplies are expected to surge in the 2024/2025 year to 127.9 million metric tons, up from 111.3 million tons in the current season, the agency said in its monthly World Agricultural Supply and Demand Estimates (WASDE) report. 

World production of soybeans is forecast at 421.9 million metric tons, up from 395.4 million a year earlier, USDA said. 

Corn inventories globally are projected at 311.6 million metric tons, up from 309.1 million in the 2023/2024 marketing year. Production of the grain is now seen at 1.23 billion metric tons, up from 1.16 billion a year earlier, the agency said. 

Soybean futures for November delivery jumped 11¼¢ to $10.27¾ a bushel overnight on the Chicago Board of Trade. Soymeal gained $2.70 to $318.90 a short ton and soy oil was up 0.43¢ to 41.88¢ a pound. 

Corn futures for December delivery added 1¼¢ to $3.99¾ a bushel.

Wheat futures for September delivery fell 2¼¢ to $5.29¾a bushel, while Kansas City futures lost 1¢ to $5.53½ a bushel. 

2. Weekly wheat sales for export decline 

Sales of wheat to overseas buyers declined week to week while corn sales hit a marketing year low, according to the Ag Department. 

Wheat sales for export in the seven days that ended on July 25 were reported at 286,600 metric tons, the agency said. That's down 7% from the previous week and 41% from the prior four-week average. 

Indonesia was the big buyer at 76,500 tons, followed by the Philippines at 58,600 tons, and Chile at 45,900 tons. Ecuador bought 38,100 tons and Jamaica was in for 33,700 tons. 

The total would've been higher but an unnamed country canceled orders for 38,900 tons. 

Wheat exports for the week totaled 454,200 tons, up 67% from the week prior, USDA said. 

Corn sales dropped 49% from the previous week and 60% from the average to 167,900 metric tons, the lowest since the marketing year started on Sept. 1, the agency said. 

Mexico purchased 94,900 tons, South Korea took 68,700 tons, Japan was in for 63,900 tons, the UK took 55,000 tons, and Costa Rica bought 32,300 tons. An unknown destination nixed orders for 134,000 tons and Panama canceled cargoes of 23,000 tons. 

For the 2024/2025 marketing year that starts in about a month, corn sales totaled 710,900 tons, the government said. 

U.S. corn exports for the week fell 14% to 1.04 million tons. 

Soybean sales jumped to 376,400 metric tons, up noticeably from both the previous week and the prior four-week average, USDA said. 

Germany took 174,400 tons, the Netherlands was in for 124,400 tons, Egypt purchased 112,500 tons, and Mexico bought 46,000 tons from U.S. supplies. An unnamed country canceled shipments of 164,300 tons. 

Sales for the 2024/2025 marketing year were reported at 632,100 tons, the agency said. 

Exports of soybeans for the seven days through July 25 totaled 565,600 tons, up 54% from the previous week, USDA said in its report. 

3. Rain forecast for parts of Indiana, Ohio

Showers are forecast for parts of northern Indiana and northern Ohio this afternoon and evening before diminishing overnight, according to the National Weather Service.

"Gusty winds will be the primary hazard with perhaps an isolated severe thunderstorm producing damaging winds," the agency said. 

Heavy rainfall is also forecast for the area, which may result in some flooding. 

Delta states are still facing extremely elevated temperatures, NWS said. 

Heat indexes in parts of eastern Arkansas are expected to reach as high as 110° Fahrenheit, the agency said. Those working outside are advised to remain hydrated and stay out of the sun.