3 Large Issues In the present day, March 10, 2023


1. Soybean Futures Fall in Overnight Trading

Soybean futures were lower in overnight trading as the harvest in Brazil rolls on, making more supplies available globally.

The South American country is forecast to harvest 153 million metric tons this year, the U.S. Department of Agriculture said in a report this week. If realized that would be the nation’s largest crop on record.

Around 44% of Brazil’s crop was in the bin at the start of the month, according to consultancy AgRural, and while that’s behind the normal pace due to precipitation, the sheer amount of soybeans that are forecast to be collected this year is keeping a lid on prices.

Rains in central and northwestern growing areas through next week will slow the harvest, said Don Keeney, an agricultural meteorologist with Maxar.

Some dry weather expected in southern regions will help crops dry down, he said.

Despite the bumper crop in Brazil, Argentina’s production forecasts keep shrinking after drought for much of the growing season curbed crop prospects.

Output in Argentina is now projected at 33 million metric tons, down from the previous outlook for 41 million tons, due to “dry and hot weather conditions,” USDA said in its monthly World Agricultural Supply and Demand Estimates (WASDE) report on Wednesday.

CREA, a consortium of agricultural companies in the country, said earlier this week that losses could amount to more than $20 billion due to the drought.

Soybean futures for May delivery fell 7 cents to $15.03¾ a bushel overnight on the Chicago Board of Trade. Soybean meal was down $4.70 to $482.20 a short ton and soy oil lost 0.23 cents to 56.83 cents a pound.

Corn futures were down 1 cent to $6.10½ cents a bushel.

Wheat futures for May delivery were up ¾ of a cent to $6.66¼ a bushel, while Kansas City futures rose 1¾ cents. 



2. Weekly Export Sales of Corn Surge, Soybean Sales Drop

Export sales of corn jumped week-to-week while bean sales dropped to a fresh marketing-year low, according to data from USDA.

Corn sales in the seven days through March 2 rose to 1.41 million metric tons from 360,700 tons a week earlier, the agency said in a report. That was up 57% from the prior four-week average.

Japan was the big buyer for the week at 469,000 metric tons, followed by South Korea at 377,900 tons, and unnamed country at 201,300 tons. Mexico purchased 130,900 tons and Colombia bought 83,300 tons.

The total would’ve been higher but Italy canceled orders for 35,000 metric tons, the government said.

Exports for the week rose 58% week-over-week to 1.1 million metric tons, the highest since the marketing year started on Sept. 1.

Soybean sellers, meanwhile, saw a net-reduction of 23,200 metric tons as cancelations outpaced new orders, USDA said. That marks a fresh marketing-year low. 

China took 178,500 metric tons, Japan was in for 69,900 tons, Mexico bought 57,200 tons, Indonesia purchased 49,900 tons, and Vietnam ordered 25,500 metric tons from U.S. supplies.

That was more than offset by cancelations of 307,600 metric tons by an unknown country and 132,000 tons by Pakistan, the agency said.

Exports for the week dropped 34% to 581,000 metric tons.

Wheat sales for the seven days through March 2 fell 6% to 266,700 metric tons. That was still up 11% from the prior four-week average, USDA said.

China bought 137,000 metric tons, South Korea was in for 87,000 tons, the Philippines took 77,300 tons, Taiwan bought 49,900 tons, and Tunisia was in for 27,100 tons.

An unnamed country nixed orders for 173,000 metric tons.

U.S. wheat exports for the week were reported at 377,100 metric tons, down 38% week-to-week, USDA said in its report.


3. Blizzard Conditions Expected in Parts of North Dakota

Blizzard warnings have been issued for parts of central and North Dakota as heavy snow is expected, according to the National Weather Service.

The warnings will take effect at midnight and last through noon tomorrow.

Snow rates of over an inch an hour are possible, bringing accumulations as high as a foot, the NWS said in a report early this morning.

White-out conditions are likely and travel will be very difficult, the agency said. Wind gusts are expected to peak at 51 mph in northern North Dakota and 56 mph in southern parts of the state.

Winter storm watches have been issued for parts of Minnesota starting tomorrow morning and lasting through the weekend, the NWS said.

Seven to 10 inches of snow are possible along with wind gusts of up to 35 mph, the agency said.


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