Soybean and grain futures saw modest gains in overnight trading, driven by increased demand for U.S. supplies. This uptick comes amidst reports of significant export sales and more favorable weather forecasts for key agricultural regions in the U.S.
Export Sales Boost Soybean and Grain Futures
The U.S. Department of Agriculture (USDA) reported the sale of 510,000 metric tons of U.S. soybeans to an unnamed country for delivery in the 2024-2025 marketing year starting on September 1. Additionally, 150,000 tons of soymeal were sold to an undisclosed destination. These sales reflect a strong demand for U.S. agricultural products, contributing to the rise in futures prices.
November soybean futures rose by 3 1/4¢ to $10.46 1/4 a bushel in overnight trading on the Chicago Board of Trade. Soymeal prices increased by $1.20 to $312.70 per short ton, while soy oil saw a gain of 0.24¢, reaching 44.57¢ per pound. Corn futures for December delivery also experienced a rise, gaining 2 1/2¢ to $4.07 1/2 a bushel. Wheat futures for September delivery increased by 4 3/4¢ to $5.40 a bushel, with Kansas City futures adding 3 1/4¢ to $5.66 a bushel.
Weekly Export Sales: Corn Declines, Wheat and Soybeans Rise
In contrast to the overnight gains, weekly sales data painted a mixed picture for corn exports. USDA reported that corn sales for delivery in the 2023-2024 marketing year totaled 437,800 metric tons, a 19% decrease from the previous week and a 10% decline from the prior four-week average. Despite purchases by Japan (191,200 tons), Mexico (129,400 tons), and other countries, cancellations by an unnamed country (195,100 tons) and Costa Rica (10,800 tons) offset the total.
For the 2024-2025 marketing year, corn sales were reported at 485,700 tons, with weekly exports jumping 26% to 1.1 million tons.
Soybean sales saw a week-to-week increase of 10% to 228,100 metric tons, although this was still 29% below the average. Egypt was the largest buyer at 92,000 tons, followed by Japan, South Korea, and Indonesia. For the upcoming marketing year, sales reached 507,000 tons, while exports dropped 25% to 200,800 tons.
Wheat sales showed significant growth, totaling 578,500 metric tons, more than doubling from the previous week and exceeding the average by 1%. Major buyers included South Korea, Mexico, China, Indonesia, and Italy, with weekly exports surging to 630,900 tons from 294,600 tons the previous week.
Weather Outlook: Favorable Conditions Expected
Weather conditions in the U.S. Corn Belt are expected to improve, potentially capping price gains. The National Oceanic and Atmospheric Administration (NOAA) forecasted rain for much of the region over the next six to ten days. Eastern Nebraska and much of western Iowa are expected to see near-normal precipitation, while eastern Kansas, much of Missouri, eastern Iowa, and the northern two-thirds of Illinois have an above-average chance of rain.
Southern Plains Storms Forecast
The National Weather Service (NWS) reported thunderstorms moving through the southern Plains, with the potential for damaging winds. The storms are expected to continue through Wednesday. Central South Dakota may also experience scattered thunderstorms, though severe weather will be isolated. There is a daily chance of storms throughout the weekend.
Flooding along the Mississippi River, particularly along the Illinois-Missouri border, remains a concern. The river at Hannibal, Missouri, stood at 21.6 feet late Thursday, well above the flood stage of 17 feet, and is expected to recede to 20.7 feet by Monday morning.
