1. Wheat Futures Surge on Russian Export Tax Worries

Wheat futures were up double digits in overnight trading Friday on speculation that Russia will boost its export sales tax on the grain.

Economy Minister Maxim Reshetnikov said Friday that Russia may bump its wheat-export tax to 50 euros ($60.63) per metric ton from March 1 through June 30, Reuters reported, citing a government statement. The order to bump the export tax hasn’t yet been signed.

The country already has a tax of 25 euros that’s set to start Feb. 15 and end March1, the report said.

An increased export tax on Russian wheat may increase demand for U.S. supplies.

U.S. wheat sales since the start of the marketing year on June 1 are now at 21.2 million metric tons, up 8% from the same timeframe last year, according to data from the Department of Agriculture.

Accumulated exports to date, however, are down 1% year-over-year to 14.9 million metric tons.

Soybean futures declined overnight as investors who were long the market, or bet on higher prices, sell contracts and liquidate positions after prices reached multi-year highs earlier this week.

Fundamentally, nothing has changed from yesterday when prices surged almost a quarter a bushel.

Wheat futures for March delivery jumped 14 1/2¢ to $6.84 ½ a bushel overnight on the Chicago Board of Trade, while Kansas City futures added 14 1/4¢ to $6.50 ¾ a bushel.

Soybean futures for January delivery fell 7 1/2¢ to $14.23 a bushel overnight. Soymeal lost $2.10 to $462.80 a short ton, and soy oil dropped 0.52¢ to 42.59¢ a pound.

Corn futures for March delivery were down 1/4¢ to $5.34 ½ a bushel.

2. Export Sales of Corn and Beans Surge Week-to-Week

Export sales of corn almost doubled week-to-week while soybeans sales surged, according to the USDA.

Corn sales to overseas buyers jumped 92% week-to-week to 1.44 million metric tons, the agency said in a report. That’s up 34% from the prior four-week average.

Japan was the big buyer at 401,500 metric tons, followed by an unnamed country at 334,500 tons and Colombia at 125,900 tons. Mexico bought 124,100 metric tons and China was in for 88,500 tons.

El Salvador canceled a shipment of 24,000 metric tons.

Exports last week totaled 1.46 million metric tons, up 43% from the previous week and 41% from the average, the USDA said.

Soybean sales were reported at 908,000 metric tons, up from the previous week’s marketing-year low of 36,964 tons and the highest since Nov. 12.

China purchased 758,300 metric tons, Spain took 143,000 tons, Mexico was in for 98,100 tons, the Netherlands bought 85,500 tons and Pakistan took 70,100 tons.

The total would’ve been higher but an unnamed country canceled cargoes for 586,300 tons.

Sales for delivery in the 2021-2022 marketing year totaled 326,000 tons as an unknown destination bought 260,000 metric tons of U.S. soybeans and China took 66,000 tons, the agency said.

Exports last week totaled 2.04 million metric tons, up 10% from the prior week but down 12% from the average.

Wheat sales through Jan. 7 totaled 221,900 metric tons, down 19% week-to-week and 49% from the four-week average, the government said.

Bangladesh bought 55,000 metric tons, Mexico purchased 46,200 tons, Malaysia took 34,000 tons, an unknown destination was in for 25,000 tons and Nigeria bought 23,800 tons.

Exports of U.S. wheat totaled 358,500 metric tons, down 14% weekly and 2% from the average, the USDA said in its report.  

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3. Blizzard and Winter Weather Advisories Issued in Much of Central Midwest

Blizzard warnings and winter weather advisories continue for much of the central Midwest this morning as more snow and strong winds are forecast, according to the National Weather Service.

Additional accumulations of 3 to 5 inches are expected in the western half of Iowa Friday, the NWS said in a report early this morning.

“Strong and gusty northwest winds coupled with moderate to at times heavy snowfall will continue to produce blizzard to near blizzard conditions into the daylight hours today over the western half of Iowa,” the agency said. “Significant travel impacts are occurring or expected, especially along Interstate 35 and Interstate 80 in western Iowa. Over the eastern half of Iowa, lighter winds and lower snowfall amounts are forecast, but hazardous travel is anticipated.”

In eastern Iowa and southern Minnesota and Wisconsin, a winter weather advisory is in effect as snow shifts north and west this morning.

The precipitation will stay where they are now, leaving scattered snow storms across southwestern Wisconsin back into northeastern Iowa.

“These snow showers would have the potential for rapid reductions in visibility and a quick (half-inch) of snow,” the NWS said.

In much of Nebraska and Kansas, meanwhile, a high-wind warning is in effect. Winds in south-central Nebraska and north-central Kansas are expected to be sustained from 30 to 40 miles an hour with gusts of up to 65 miles an hour, the agency said.

The winds, along with light snow, will reduce visibility.