1. Beans, Grains Higher Overnight on Continued Trade Optimism
Soybeans and grains were all higher in overnight trading on optimism about the Phase One trade deal between the U.S. and China.
Stock markets in the U.S. and in Asia have been steadily rising. Asian markets were higher overnight while U.S. equity futures are indicating another strong day.
Officials have said they expect the agreement to be signed in early January.
The Chinese Commerce Ministry said yesterday that it’s been in close contact with U.S. officials, while President Donald Trump said an agreement is “getting done.”
The president also said he would hold, at some point, a signing ceremony with Chinese President Xi Jinping, though no specifics were given.
Volume is generally low between Christmas and New Year’s, a trend that’s continued this year.
Soybean futures for January delivery rose 3¼¢ to $9.49¾ a bushel overnight on the Chicago Board of Trade. Soymeal fell 50¢ to $303.50 a short ton while soybean oil added 0.41¢ to 35.08¢ a pound.
Corn futures for March delivery gained 1¼¢ to $3.89¾ a bushel.
Wheat for September delivery rose 4¼¢ to $5.53¼ a bushel, while Kansas City futures gained 4¼¢ to $4.74¾ a bushel.
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2. Soybeans May Not Be The Only Commodity That Benefits From U.S.-China Deal
It’s a well-known fact that demand for soybeans improves when China and the U.S. play nice, but data show that wheat and corn also could be big winners.
China has a quota to purchase 9.6 million metric tons of soybeans, and if it were to fulfill that allotment, it would represent a large increase in purchases, Bloomberg reported. In the six years through 2017, the Asian nation has filled about half its quota, the report said.
U.S. exporters have sold 17.8 million metric tons of wheat to overseas buyers since the start of the grain’s marketing year on June 1, according to the Department of Agriculture.
That’s a 6% increase from the same time frame last year.
Accumulated exports, meanwhile, jumped year-over-year to 13.3 million metric tons, an 18% increase, the USDA said in its export sales report. The agency is scheduled to update the weekly report this morning.
Bloomberg also noted that corn also could benefit if China fills its quota of 7.2 million metric tons. The increase in demand would be smaller, though, since Beijing already does a good job of filling its quota, the report said.
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3. `Powerful’ Winter Storm Moves Into Much of Nebraska, Dakotas, Minnesota
After a nice Christmas lull in the weather for most of the Midwest, winter is back with a vengeance.
A “powerful” winter storm stretching from the southern Rockies to the Canadian border with Minnesota is expected to hit this weekend, according to the National Weather Service.
“Areas of heavy snow, blowing snow, and freezing rain are forecast on the cold side of the storm,” the NWS said on its website early this morning. “On the warm side, isolated severe thunderstorms may occur Saturday across parts of east Texas into the lower Mississippi Valley.”
A winter storm warning has been issued for much of Nebraska as ice and snow accumulations are expected.
As much as 0.2 inch of ice along with up to 1 foot of snow are likely, the agency said in its report. Wind gusts are forecast as strong as 40 mph.
Farther north, a winter storm watch is in effect for most of South Dakota, the eastern half of North Dakota, and about three-fourths of Minnesota, according to the maps.
Up to a foot of snow is expected in those regions as part of the winter storm watch. Blowing snow could “significantly” reduce visibility, the NWS said.
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December 27, 2019 at 07:13PM
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3 Big Things Today, December 27, 2019 - Successful Farming
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