1. Soybeans Surge and Corn Rises in Overnight Trading

Soybeans jumped and corn was higher in overnight trading amid ongoing demand for U.S. supplies and adverse weather in some global producing areas.

Exporters sold 160,020 metric tons of corn to Mexico for delivery in the marketing year that started on Sept. 1, the U.S. Department of Agriculture said in a report on Monday.

That follows Friday’s announcements of sales of 264,000 metric tons of soybeans to China for delivery in the current marketing year and 252,000 tons of soybeans to an unnamed buyer.

Export inspections were higher week-to-week for soybeans, corn, and wheat.

Prices rose despite an acceleration in the U.S. harvest.

About 38% of soybeans were in the bin as of Sunday, up from 20% seven days earlier and well ahead of the prior five-year average of 28% for this time of year, the USDA said. The crop was rated 64% good or excellent, unchanged week-to-week.

Some 25% of corn was harvested at the start of the week, up from 15% the previous week and the 24% average; 62% earned top ratings, up 1 percentage point from the prior week.

In the southern Plains, growers have seeded 52% of the winter wheat crop so far, up from 35% seven days earlier and ahead of the average of 47%, the USDA said.

Almost a quarter of the crop had emerged as of Sunday, up from 10% a week earlier and in front of the normal 21% for this time of year, the agency said.

Also boosting bean prices is dry weather in Brazil that could slow planting. S&P Global said in a note to clients, citing agricultural consultancy AgRural.

Only about 1.6% of the Brazilian crop was planted at the start of the month vs. 3.1% at this point last year and the five-year average of 4.5%. Still, S&P Global said in its report that total crop output shouldn’t be affected as the country’s soybeans generally receive ample rain in October and November.  

Soybean futures for November delivery jumped 8¾¢ to $10.30¼ a bushel overnight on the Chicago Board of Trade. Soymeal added $2.60 to $348.60 a short ton, and soy oil rose 0.4¢ to 32.96¢ a pound.

Corn futures added 1¾¢ to $3.81¼ a bushel overnight.    

Wheat futures for December delivery rose ¼¢ to $5.84½ a bushel, while Kansas City futures were up ¼¢ to $5.24½ a bushel.

2.  Export Inspections Higher Across The Board as Strong Demand Continues

Inspections of corn, wheat, and beans for overseas delivery all rose in the seven days that ended on Oct. 1, according to the USDA.

Corn assessments last week totaled 863,995 metric tons, the agency said. That’s up from 826,995 tons a week earlier and 473,409 tons at the same time last year.

Wheat inspections for offshore delivery improved to 643,671 metric tons, up from 586,916 tons the previous week.

The total also was higher than the 479,335 tons assessed during the same week in 2019, the government said.

Examinations of soybeans were reported at 1.67 million metric tons, up from 1.3 million a week earlier and 1.05 million at the same point last year, the USDA said.

Since the start of the marketing year on Sept. 1, the government has inspected 3.67 million metric tons of corn for overseas delivery. That’s up from the 2.03 million tons assessed during the same period last year, the agency said.

Soybean assessments since the beginning of September now stand at 6.6 million metric tons, up from 4.21 million at the same point in 2019.

Wheat inspections since the start of the grain’s marketing year on June 1 are at 9.89 million metric tons, up from 9 million during the same time frame last year, the USDA said in its report.

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3. Fire Hazards Abound in Much of Dakotas and Parts of Nebraska Tuesday

Red-flag warnings have been issued for most of North Dakota and the eastern half of South Dakota, according to the National Weather Service.  

Relative humidity is expected to be in the 20% range while wind gusts of up to 45 mph are forecast, the NWS said in a report early this morning.

“Critical fire weather conditions are expected this afternoon and early evening across central and much of western North Dakota including the James River Valley,” the agency said. “The gusty winds and low relative humidity values will combine with dry fuels resulting in rapid fire development should any fires occur.”

In southeastern South Dakota and a counties in southwestern Minnesota, humidity will fall as low as 21% with sustained winds of 15 to 25 mph and gusts of up to 35 mph, the NWS said.

Near-critical fire conditions also are expected in parts of west-central Nebraska today, the agency said.

“Summer-like temperatures and the lack of precipitation continue today,” the forecaster said. “When combined with a light breeze, fire weather conditions will be near critical.”