3 big things today, October 6, 2021
1. Soybeans, cereals slightly higher in the day-to-day trade
Soybean and grain futures were slightly higher overnight as investors weighed in for signs of demand against crop pressure.
Global demand for agricultural products supports prices.
Exporters on Monday reported sales of 426,800 metric tonnes of corn to Mexico for delivery in MY 2021-2022, which began Sept. 1, the USDA said.
Egypt purchased 36,000 metric tonnes of soybean oil from global stocks, indicating new global demand for agricultural products.
Yet the US harvest continues, limiting price gains.
About 34 percent of the U.S. soybean crop was harvested earlier this week, down from 16 percent a week earlier and ahead of the previous five-year average of 26 percent, the Department of Agriculture said in a report.
On Sunday, 58% of the crop was in good or excellent condition, unchanged from the previous week.
Some 29% of U.S. corn was in the bin, up from 18% a week earlier and ahead of the 22% average for this time of year, the agency said. About 59% of the crop was in good or excellent condition, on par with the previous week.
Soybean futures for November delivery rose 2½ ¢ to $ 12.53 a bushel overnight on the Chicago Board of Trade. Soybean meal rose $ 1.20 to $ 322.40 per short ton, while soybean oil rose 0.46 to 61.62 per pound.
Corn futures for December delivery gained 2¼ ¢ to $ 5.39 ¾ a bushel.
Wheat futures for December delivery rose $ 3 to $ 7.48 a bushel, while Kansas City futures rose $ 4 to $ 7.45 a bushel.
2. Demand for agricultural loans continues to decline in the Eleventh District
Demand for agricultural loans in the Eleventh District of the United States, which includes all of Texas and parts of New Mexico and Arkansas, continues to decline in the third quarter of the year amid favorable backdrop for livestock producers and crops, according to a Federal Reserve Bank of Dallas Survey of area bankers.
About 23.5% of survey respondents said they saw less demand for loans, while 22.5% said they saw more demand, the Fed branch said.
“Demand for agricultural loans continued to decline, with the loan demand index registering its 24th quarter in negative territory,” the Dallas Fed said. “Loan renewals or extensions fell for the third consecutive quarter, while the loan repayment rate continued to rise. Loan volume decreased in most major categories compared to a year ago, with the exception of operating loans, farm real estate and machinery loans. ”
The Fed branch surveys bankers quarterly. Data for the most recent report was collected during the week through September 15 with 94 bankers responding.
About 31% of bankers said the amount of funds available for agricultural loans had increased and the rest said the availability of funds was unchanged.
No respondent indicated that the amount of funds available for loans had declined, the Fed said. This is the first time since record keeping began in 1990 that no investigator has indicated that available funds are less, according to government data.
The values of ranches, irrigated land and drylands all increased in the third quarter, the Fed said.
“The expected trend in the index of farmland values rose in the third quarter to reach a new all-time high, suggesting that respondents expect farmland values to continue rising,” the Fed said of Dallas in his report. “The Credit Standards Index fell for the fourth consecutive quarter but remained in positive territory. The still positive value of the index indicates a further tightening of standards on the net.
3. Red Flag Warnings Issued for West Dakotas
Red flag warnings have been issued for the western halves of North Dakota and South Dakota and for several counties in eastern Montana, according to the National Weather Service.
Winds in North Dakota are forecast at around 25 mph sustained with gusts of up to 40 mph, the NWS said in a report early this morning.
Relative humidity should drop to 15%.
In southwest South Dakota, meanwhile, winds will blow up to 35 mph as relative humidity drops to 17%, creating powder keg-like conditions, the agency said.
“Gusty southerly winds will develop this morning and continue throughout the afternoon, particularly over the western and central plains of South Dakota,” the NWS said. “The minimum values of relative humidity will be slightly higher than those of the last afternoons; However, strong and sustained winds with gusts to around 40 mph can result in extreme fire behavior. ”
Further south, in Missouri, the rain could fall until Thursday morning before drying up.
Isolated showers are expected in parts of central and northern Missouri, although most of the state’s western counties are likely to remain dry, the agency said.
Temperatures will rise on Friday and Saturday with temperatures reaching the lower 90 degrees (° F) before the rain returns on Sunday, the NWS said.