1. Soybeans and grains jump in the night trade
Soybean and corn futures surged in trading overnight in the first session after the Christmas break amid concerns over the South American crops.
Dry weather in Brazil and Argentina has raised concerns over soybeans and corn in South American countries.
Weekend rains are expected to be light as stress intensifies in some growing areas, according to meteorologists.
Forecasts point to low rainfall in parts of Brazil.
In Argentina, meanwhile, crop stress is expected to persist under dry and hot conditions in the northeastern growing areas, supporting prices.
Wheat futures prices were also higher due to the dry weather in the southern plains of the United States.
According to the National Weather Service, little to no rain has fallen over the past 30 days in parts of southwestern Kansas or the Oklahoma and Texas enclaves where hard winter wheat grows.
Soybean futures for November delivery jumped 11¼ ¢ to $ 13.52 a bushel overnight on the Chicago Board of Trade. Soybean meal gained $ 3.10 to $ 403.60 per short ton, while soybean oil added 0.35 to 55.77 per pound.
Corn futures for December delivery rose 5 ¢ to $ 6.11 ½ a bushel.
Wheat futures for December delivery rose $ 5 to $ 8.20 a bushel, while Kansas City futures rose from $ 7 to $ 8.68 a bushel.
2. Chinese Xi Jinping wants to increase soybean production
Chinese President Xi Jinping told a conference this weekend that he expects producers in the Asian country to expand soybean plantings, according to a Bloomberg News report.
Xi told the Central Rural Labor Conference that he wanted increased protection of agricultural land as well as reduced poverty in rural areas, the report said, citing China Central Television.
He also wants to expand rural revitalization.
China, the world’s largest importer of soybeans, is expected to produce just 16.4 million metric tonnes of oilseeds in MY 2021-2022, according to the US Department of Agriculture.
That compares to global production of 381.8 million metric tonnes and U.S. production of 120.4 million tonnes, the USDA said in a report released earlier this month.
Closing stocks in China are set at 34.1 million metric tonnes, up from 34.5 million tonnes a year earlier.
The Asian nation will import 100 million metric tonnes of soybeans in the current marketing year, which is little changed from the previous year, the U.S. Department of Agriculture said.
Xi said he wanted to see increased grain security and an increased supply of agricultural products, according to the Bloomberg report.
3. Blizzards, winter storms expected in the northern United States
Blizzard and winter storm warnings are in effect across much of the northern United States this morning, according to the National Weather Service.
Snowdrifts of up to 5 feet are expected along with wind gusts of around 45 mph in parts of North Dakota, the NWS said in a report early this morning.
Visibility will be close to zero and movement almost impossible.
Further east in parts of Minnesota, snowfalls are forecast of 4 to 6 inches with wind gusts of up to 35 mph, the agency said.
“Plan for slippery road conditions,” the NWS said. “Blowing snow and snowfall could drastically reduce visibility. ”
Winter conditions are also expected in parts of South Dakota, Wisconsin and Michigan.