Soybeans, Grains rise overnight; Weekly export inspections of wheat higher

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Weekly export

1. SOYBEANS, GAINS RISE IN OVERNIGHT TRADING

Soybean futures were higher in overnight trading on concerns about exports from Brazil, the world’s largest exporter of oilseeds.

Corn and wheat also jumped.

Brazilian soybean exports in the first three weeks of this month totaled 5.6 million metric tons, down from 6.2 million tons during the same time frame a year earlier, S&P Global reported, citing data from Brazil’s Secretariat of Foreign Trade, also knows as Secex.

The decreased shipments from the South American country may boost demand for U.S. supplies, boosting prices on the Chicago Board of Trade.

“With a delayed harvest in the current marketing year 2020-21 (February-January), Brazil’s soy exports in June and July had been expected to emulate April and May in surpassing previous years’ levels, but the reluctance of oilseed farmers to sell their stocks since early June has put the brakes on the country’s exports,” S&P Global said.

The U.S. Department of Agriculture, however, said in a report last week that it now expects Brazil to export 93 million metric tons of soybeans in the 2021-2022 marketing year, up from 83 million tons last year.

U.S. exports were pegged at 56.5 million metric tons, down from 61.8 million tons a year earlier.

Wheat futures also jumped overnight as the condition of the spring crop worsened further week-to-week.

About 11% of U.S. spring wheat was in good or excellent condition as of Sunday, down from 16% a week earlier, the USDA said in a report.

Last year at this time, 68% of the crop earned top ratings.

The condition of the U.S. corn crop was unchanged at 65% good or excellent while soybeans actually improved with 60% earning top ratings vs. 59% last week, the USDA said.

Soybean futures for November delivery gained 23¢ to $13.95¾ a bushel overnight on the Chicago Board of Trade. Soymeal rose $5.60 to $370 a short ton, while soy oil added 0.96¢ to 64.04¢ a pound.

Corn futures for May delivery jumped 13½¢ to $5.65¾ a bushel.

Wheat futures for September delivery surged 13¾¢ to $7.11¾ a bushel, while Kansas City futures gained 15¼¢ to $6.67½ a bushel.

2. WHEAT EXPORT INSPECTIONS RISE WEEK-TO-WEEK

Inspections of wheat for export rose in the seven days that ended on July 15 while corn and bean assessments declined, according to the Ag Department.

Wheat assessments totaled 490,626 metric tons last week, up from 427,819 tons a week earlier, the agency said. The total, however, was down from the 512,305 tons examined during the same week a year earlier.

The grain was the only major agricultural commodity that saw a weekly gain as corn and soybean inspections were lower.

Corn assessments totaled 1 million metric tons, little changed from the previous week, but down from the 1.22 million tons inspected during the same week in 2020, the USDA said.

Soybean inspections last week were reported at 143,934 metric tons, down from 201,129 tons the previous week. That’s also down from the 454,719 tons assessed at the same point last year, the government said.

Since the start of the grain’s marketing year on June 1, the agency has inspected 2.82 million metric tons of wheat for offshore delivery. That’s down from the 3.59 million tons assessed during the same time frame last year.

Corn inspections since the start of the crop’s marketing year on Sept. 1 now stand at 60.2 million metric tons, well above the 36.5 million tons assessed during the same period a year earlier.

Soybean assessments since the beginning of September were reported at 57.8 million metric tons, up from 38.3 million tons the previous year, the USDA said in its report.

3. HOT AND DRY WEATHER PERSISTS IN PARTS OF NORTHERN PLAINS

The hot and dry weather continues in much of the Northern Plains today as heat indexes in eastern Montana and western North Dakota are expected to hit triple digits again today, according to the National Weather Service.

An excessive heat warning is in effect until Thursday evening for the region.

“Extreme heat will significantly increase the potential for heat-related illnesses, particularly for those working or participating in outdoor activities,” the NWS said in a report early this morning.

In southwestern North Dakota, strong winds expected will make for tinderbox-like conditions.

Along with the heat, winds are forecast from 15 to 25 mph with gusts of up to 35 mph, the agency said. The relative humidity is pegged as low as 15%. The dry conditions may lead to wildfires, prompting the NWS to issue a red-flag warning until midnight. Storms may arrive this evening, but expected lightning strikes could spark wildfires, the agency said.

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