Wheat dropped in overnight trading on profit-taking after jumping yesterday.
Futures closed up 23¢ on Tuesday, the first day trading after the long weekend for President’s Day, as the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) said production in the country would fall to a 12-year low.
The single-day jump in prices led some investors who were long the market, or had bet on higher prices, to sell the contracts and book profits.
Wheat futures for March delivery dropped 5¾¢ to $5.61 a bushel overnight on the Chicago Board of Trade, while Kansas City futures fell 5¼¢ to $4.80½ a bushel.
Corn and soybeans were both little changed overnight.
The National Oilseed Processors Association said in a report Tuesday that about 177 million bushels of soybeans were crushed in January, up 1.2% month to month and exceeding expectations for about 174 million bushels.
Investors are keeping an eye on developments with the coronavirus, or COVID-19. The good news is, the spread of the disease seems to be slowing as the number of new cases reported has declined.
The bad news is, the number of confirmed cases has risen to more than 74,000 and deaths have now topped 2,000, according to the Chinese government.
Corn futures fell 1¢ to $3.81¾ a bushel overnight.
Soybean futures for March delivery lost ¾¢ to $8.91½ a bushel. Soy meal rose 60¢ to $292.80 a short ton, and soy oil dropped 0.36¢ to 30.12¢ a pound.
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Inspections of soybeans and corn for overseas delivery rose week to week, while wheat assessments declined, according to the USDA.
About 992,294 metric tons of soybeans were inspected for offshore delivery in the seven days that ended on February 13, the USDA said in a report. That’s up from the 640,620 tons assessed the previous week but down from the 1.08 million tons inspected during the same time frame in 2019.
Corn assessments last week totaled 795,228 metric tons, up from 788,549 the previous week. The total, however, is down from the 941,811 tons examined at the same time last year, the agency said.
Wheat inspections were reported at 501,990 metric tons, down from 567,349 tons inspected the previous week, according to the government. That’s up from the 363,523 tons assessed at the same point a year earlier.
Since the start of the marketing year on September 1, USDA officials have inspected 12.3 million metric tons of corn for offshore delivery. That’s almost half the previous year’s 24.2 million tons examined at the same time a year earlier.
Soybean assessments, meanwhile, now stand at 28.3 million metric tons, up from the 23.8 million tons that were inspected at the same time a year earlier.
Wheat inspections since the start of the grain’s marketing year on June 1 are now at 17.7 million metric tons, up from the 15.8 million tons examined at this point in 2019, according to the USDA.
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Winter weather advisories are in effect for much of Nebraska and a few counties in northwestern Nebraska and separately in eastern Colorado and western Kansas, according to the National Weather Service.
In central Nebraska, an Arctic air mass will slide into the region this morning and bring snow in addition to what’s already on the ground, the NWS said in a report early this morning.
Up to an additional 5 inches of snow are expected in much of the area, the agency said. The winter weather advisory is in effect until midnight central time.
In southwestern Kansas, meanwhile, as much as 3 inches of snow are expected, the NWS said.
That will continue to add a blanket of snow under which hard red winter wheat can overwinter.
