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3 Big Things Today, January 4, 2023
1. Soybeans Rise, Grains Fall in Overnight Trading
Soybean futures rebounded from the lowest price in a week in overnight trading while wheat and corn futures declined.
Better-than-expected rains in Argentina over the weekend led to a selloff in beans yesterday, but the overnight session brought in bargain-hunters who focused on upcoming weather, as stress is expected to rebuild in the South American country.
Crop stress is expected to rebuild starting Friday in northern and eastern Argentina and will expand from just under half of soybean- and corn-growing areas to about 60% of the regions, Commodity Weather Group said in a report.
Temperatures from Friday through Tuesday are forecast in the 90s and 100s Fahrenheit, CWG said.
In Brazil, about 15% to 20% of growing areas remain the driest, though in Paraguay rains are aiding crops even as the southern half of the country may turn drier in the next two weeks, the forecaster said.
Wheat futures plunged in overnight trading as rain and snow in U.S. hard-red winter areas likely improved crop prospects.
Rain and snow in northeastern Colorado, parts of Nebraska, and northern Kansas this week improved soil moisture for about 25% of hard-red wheat area, CWG said.
Two more vessels — one hauling wheat and one carrying sunflower meal — left Ukrainian ports yesterday as more agricultural products continue to make their way out of the war-torn country, according to the United Nations.
Four ships left ports today carrying corn and sunflower meal, the UN said.
Soybean futures for March delivery jumped 11½¢ to $15.03 ¾ a bushel overnight on the Chicago Board of Trade. Soymeal was up $5.60 to $470.70 a short ton and soy oil was down 0.23¢ to 62.97¢ a pound.
Wheat lost 8¾¢ to $7.66 ¾ a bushel while Kansas City futures dropped 9 ¾¢ to $8.59 ½ a bushel.
Corn futures were down 2¾¢ to $6.67 ¾ a bushel in overnight trading.
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2. Weekly Inspections of Grains and Beans For Export Decline
Inspections of grains and beans for overseas delivery declined week-to-week, according to data from USDA.
Corn assessments for export in the seven days that ended on Dec. 29 fell to 667,010 metric tons from 922,142 tons a week earlier, the agency said in a report.
That's also down from the 759,563 tons examined during the same week a year earlier.
Wheat inspections last week were reported at only 85,672 metric tons, down from 313,707 tons the previous week and 230,361 tons during the same week in 2022, the government said.
Soybean assessments came in at 1.46 million metric tons, but that was down from 1.77 million tons a week earlier and 1.62 million tons a year earlier, agency data show.
Since the beginning of the marketing year on Sept. 1, USDA has inspected 9.58 million metric tons of corn for overseas delivery, down from 13.1 million tons during the same timeframe a year earlier.
Soybean inspections since the start of September now stand at 28.6 million metric tons, down from 30.8 million tons a year earlier, the agency said.
Wheat assessments since the beginning of the grain's marketing year on June 1 are now at 11.8 million metric tons, behind the 12.2 million tons examined for export during the same period last year, USDA said in its report.
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3. Winter Storm Warnings Remain in Parts of Minnesota, Wisconsin
Winter storm warnings and winter weather advisories remain in effect in parts of the upper Midwest while storms hit the Gulf Coast, according to National Weather Service maps.
In parts of north-central Minnesota and northeastern Wisconsin, winter storm warnings have been issued through 6 p.m. local time this evening as another 2 to 4 inches of snow is expected, the NWS said in a report early this morning.
A light glaze of ice also is forecast for the area.
Much of Wisconsin and parts of eastern South Dakota, northern Iowa, and northern Wisconsin are under a winter weather advisory.
Light snow and freezing drizzle are expected in northwestern Iowa this morning, the agency said. Another inch or two of snow is expected in the area.
In the Gulf Coast, meanwhile, severe thunderstorm, flash flood warnings, and tornado watches have been issued as storms approach Mississippi, Alabama, and Georgia, the maps show.
Damaging winds and tornadoes with a rating of EF-2 or stronger are potentially threatening the region, the NWS said.
"There is an enhanced risk (Level 3 of 5) of severe weather across much of the area late this evening into Wednesday morning as a cold front moves into the area," the agency said. "Main threats: damaging straight line winds up to 60 mph, tornadoes (a few could be strong), and large." hail."
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