1. Corn Futures Higher Overnight on Sales to China

Corn futures were higher in overnight trading after the Department of Agriculture reported sales of U.S. supplies to China for a second day.

China purchased 696,000 metric tons of U.S. corn for delivery in the marketing year that ends on Aug. 31, the USDA said in a report yesterday.

On Wednesday, the agency reported sales of 1.22 million metric tons of corn to the Asian nation.

Still, price gains have been limited due to favorable weather in Argentina. Several states in the South American country have received much-needed rain recently, with more on the way.

Drought conditions in the Midwest, meanwhile, are mostly favorable with only a pocket of northwestern Iowa showing anything more than a moderate drought.

About 40% of the region, which includes Iowa and Illinois, the largest producers of both corn and beans, is abnormally dry, while 10% is suffering from a moderate drought. Only about 1.3% of the area is seeing worse drought conditions, and 48% is experiencing no abnormal dryness or drought, the monitor said.

“A major storm brought widespread heavy precipitation (1 to 3 inches, liquid equivalent) to western Iowa and Missouri,” the Drought Monitor said in a report. “This recent precipitation resulted in a 1-category improvement for areas that received more than 1.5 inches of precipitation.”

Corn futures for May delivery were up 2¼¢ to $5.48¾ a bushel in overnight trading on the Chicago Board of Trade.

Wheat futures for May delivery rose 1½¢ to $6.32 a bushel, while Kansas City futures fell ¼¢ to $5.86¾ a bushel.

Soybean futures for May delivery gained 4¾¢ to $13.97 a bushel overnight. Soymeal rose $2.30 to $400.50 a short ton, and soy oil lost 0.22¢ to 53.3¢ a pound.

2. Soybean Sales Plunge, Grain Sales Up Week-to-Week

Export sales of soybeans plunged while grain sales rose week-to-week, according to the USDA.

Soybean sales in the seven days that ended on March 11 were reported at 202,400 metric tons, down 42% week-to-week and 31% from the prior four-week average, the agency said in a report.

China was the big buyer, but only took 71,500 metric tons, followed by Bangladesh at 57,100 tons and Japan at 25,100 tons.

The total would have been higher, but an unnamed country canceled cargoes totaling 123,200 metric tons, the government said.

Exports came in at 534,100 tons, down 24% from the previous week.

Corn sales last week totaled 985,900 metric tons, up considerably from the previous week and from the prior average, the USDA said.

China bought 624,800 metric tons, Mexico purchased 285,500 tons, Colombia took 208,500 tons, South Korea was in for 168,200 tons, and Japan bought 138,300 tons, the agency said. Net sales for the 2021-2022 marketing year totaled 240,900 tons.

Exports hit a marketing-year high of 2.2 million metric tons.

Wheat sales through March 11 were reported at 390,100 metric tons, up 18% from the previous week and 40% from the average for this time of year, government data show.

China was again the main buyer at 132,300 metric tons. Mexico took 93,000 tons, Taiwan was in for 85,000 tons, the Philippines took 75,400 tons, and Thailand purchased 54,000 tons.

Unknown destinations nixed shipments for 215,800 tons.

Exports for the week totaled 662,300 tons, up 41% week-to-week, the USDA said in its report.

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3. Stretches of Mississippi River Flooding While Northern Plains Dry

Weather maps are relatively quiet this morning after a volatile week, though flood warnings and watches remain in effect, according to the National Weather Service.

Areas along the Mississippi River on the Missouri-Illinois border are pretty much all under a flood warning this morning due to rainfall and forecast precipitation in the next 48 hours, the NWS said in a report.

“Rainfall heavier than forecast could cause river levels to rise even higher than predicted,” the agency said.

At Jefferson City, Missouri, the river was at 25.5 feet around 4:30 a.m., well above flood stage of 17 feet. At Hannibal, Missouri, the river late yesterday was at 17.8 feet, topping flood stage of 17 feet, and will crest at 18.7 feet on Saturday evening, the NWS said.

Farther north, along the North Dakota-Minnesota border, low humidity levels and strong winds are creating tinderbox-like conditions.

Relative humidity is expected to fall as low as 25% in the area today and winds are forecast from 20 to 25 mph with gusts of up to 30 mph, the agency said.

“Near-critical fire weather conditions across these areas,” the NWS said. “Use caution if burning today, and always check with local officials for the status of burn bans in your county.”