3 Big Things Today, September 4
1. Soybeans Higher Overnight on Strong Export Inspections
Soybeans were higher in overnight trading, rebounding from yesterday’s losses, on signs that perhaps demand for U.S. supplies has picked up. Grains futures also improved.
The USDA inspected 1.28 million metric tons of soybeans for overseas delivery in the seven days that ended on August 29, a 33% increase from the previous week. The total also was up from the 776,277 metric tons inspected during the same period last year.
Soybean inspections were surprisingly strong considering sales have been lackluster due to the ongoing trade war with China, the world’s biggest importer of the oilseeds.
On an annual basis, inspections were still down. From the start of the marketing year on September 1 through Aug. 29, government officials inspected 45.7 million metric tons of soybeans for overseas delivery, well below the 56.3 million tons assessed during the same period a year earlier.
Wheat inspections also gained week to week, rising to 526,049 metric tons from 504,574 tons the previous week, the USDA said. The total also topped the year-earlier amount of 409,232 tons. Since the start of the grain’s marketing year on June 1, the government has inspected 6.55 million metric tons of wheat for overseas delivery, up from the 5.26 million tons a year earlier.
Corn inspections, meanwhile, were lackluster at 355,411 metric tons, down from 646,439 tons the previous week and less than a third of the 1.34 million tons inspected during the same time frame in 2018.
Corn sales from September 1, 2018, through August 29 totaled 47.2 million tons, down from 57.7 million during the same period a year earlier, according to the government.
Soybean futures for November delivery rose 2½¢ to $8.71 a bushel overnight on the Chicago Board of Trade. Soy meal gained $1.30 to $295.40 a short ton, while soybean oil dropped 0.21¢ to 28.88¢ a pound.
Wheat for September delivery rose 5¢ to $4.58½ a bushel, while Kansas City gained 3½¢ to $3.85¾ a bushel.
Corn futures for December delivery added 1½¢ to $3.62½ a bushel.
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2. Corn Condition Improves Slightly Week to Week, Maturity Way Behind Normal
The condition of the U.S. corn crop improved slightly week to week even as maturity was well behind normal, according to the government.
Some 58% of corn was in good or excellent condition as of Sunday, up from 57% the previous week, the USDA said in a report that was delayed by 24 hours due to Labor Day. That’s still down from the 67% that earned top ratings at this time last year.
Only 6% of the crop was mature at the start of the week, down from 13% at this time last year. About 41% was dented, trailing the prior five-year average of 63%, and 81% was in the dough stage, behind the normal 93% for this time of year, the government said.
Soybeans, meanwhile, were rated 55% good or excellent as of Sunday, unchanged week to week. At this time last year, about 66% earned top ratings.
Just 86% of the crop was setting pods, behind the previous average of 96%, and blooming was almost complete at 96%, the USDA said.
The spring wheat crop in the northern was rated 67% good or excellent at the start of the week, and while that’s a lofty number, it’s still behind the 69% that earned top ratings a week earlier and the 74% good or excellent at this time in 2018.
About 55% of the crop was harvested, behind the prior five-year average of 78%, the government said in its report.
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3. Hurricane Dorian Moves Along Coasts of Florida, Georgia, Carolinas, Bringing Storm Surges
Hurricane Dorian is moving slowly along Florida’s Atlantic coast and continues to remain a “dangerous” storm, according to the National Weather Service.
Impacts from the hurricane are expected all week along the coasts of Georgia, South Carolina, and North Carolina.
“This will be a long-duration event with heavy rain, storm surge(s), damaging winds, and isolated tornadoes,” the NWS said in a report early this morning.
In the Corn Belt, meanwhile, some scattered thunderstorms are expected in parts of eastern Nebraska and western Iowa tonight.
Some of the storms are forecast to hit after midnight tonight in central Iowa, though the threat of severe weather is “very low,” the agency said.