1. Soybeans, weaker grains in the day-to-day trade
Soybean and corn futures were down in overnight trading due to technical selling and some optimism about the rains in South America.
Investors are likely to be settling their positions before the end of the year, with some having been in the market for a long time or betting on higher prices, selling contracts and closing positions before December 31st.
Weather wise, “limited relief” is expected through Friday in parts of central and southeastern Brazil, the Commodity Weather Group said in a report yesterday.
Parts of Paraguay and central Brazil could see some drought relief from Tuesday to next Thursday, the forecaster said.
“The regime of active rains in northern Brazil promotes growth, but excess rainfall (and) flooding problems persist in (the) 10-15% of the northeast” of soybean growing areas, said said the CWG.
Still, all is not rosy as drought stress now affects 35% to 40% of producing regions in Brazil, the world’s largest soybean exporter, and most of Paraguay will only shrink slightly next week. , said the forecaster.
Wheat futures were narrowly lower overnight on signs of weak demand for US supplies.
Grain exports since the start of its marketing year on June 1 are now 10.6 million metric tons, down 22% from the same period last year, according to US Department data. of Agriculture.
Foreign buyers have pledged to purchase 15.8 million metric tonnes, also down 22% year-over-year, the USDA said in a report last week.
Soybean futures for November delivery fell 8½ ¢ to $ 13.59½ a bushel overnight on the Chicago Board of Trade. Soybean meal fell from $ 1.90 to $ 407.20 per short ton, while soybean oil fell from 0.18 to 56.49 per pound.
Corn futures for December delivery fell 2½ ¢ to $ 6.02 a bushel.
Wheat futures for December delivery fell 3½ ¢ to $ 7.80 a bushel, while Kansas City futures fell 4¼ ¢ to $ 8.17½ a bushel.
2. China Should Approve Domestic GM Maize
China will likely approve the use of genetically modified corn varieties made in the country after a public comment period until Jan. 17, the Ministry of Agriculture and Rural Affairs said in a statement.
The companies making the new GM varieties are China National Tree Seed Corp, China Agricultural University, Hangzhou Ruifeng Biotech and Beijing Dabeinong Biotechnology, the ministry said.
After the public comment period, the government is expected to approve the new varieties.
Yet China does not allow planting of genetically modified corn or soybeans, although it does allow the importation of these varieties for use in animal feed.
The Asian country is expected to produce 272.6 million metric tonnes of corn this year, up from 260.7 million tonnes a year earlier, according to the US Department of Agriculture.
Imports are set at 26 million metric tonnes, making China the world’s largest buyer of grain. It is also the largest importer of soybeans.
China will use 214 million metric tonnes of corn for livestock feed, significantly exceeding the 143.5 million tonnes the United States is expected to use for animal feed, the USDA said.
Total corn consumption is estimated at 294 million metric tonnes in the Asian country, behind only the United States, which is expected to use 313.2 million metric tonnes of corn in MY 2021-2022, said the Ministry of Agriculture.
3. Wind chill warnings issued for much of the northern plains
Wind chill warnings and advisories are in effect for all of North Dakota and parts of Montana, South Dakota and Minnesota this morning, according to the National Weather Service.
A “life threatening cold” is expected as wind chills are expected to drop to -50 ° F, the NWS said in a report early this morning.
“Frostbite on exposed skin (can occur) in as little as 10 minutes,” the agency said. “Don’t stay outside for too long. When outdoors, be sure to wear appropriate clothing.
Further south, in the southern plains, red flag warnings have been issued due to extremely dry weather in the region.
Winds will be sustained from 20 to 30 mph with gusts of up to 40 mph expected, the NWS said.
Relative humidity is expected to drop to 19% today.
“Critical weather conditions for the fires are expected to develop this afternoon in west central and southwestern Texas Panhandle,” the agency said.