1. Soybean Futures Higher Overnight as Long Liquidation Over

Soybean futures were higher in overnight trading as the long liquidation seems to finally be over, though there doesn’t seem to yet be a return to fundamentals.

The price swings in the past few sessions have been violent with futures plunging 58 cents on Friday before rebounding by 31 cents yesterday.

Speculative investors who were long the market, or bet on higher prices, had likely been unloading their soybean, corn and wheat contracts and closing their positions after a runup in futures to multi-year highs.

The long liquidation is apparently over as prices surged Monday and are again higher this morning.

Still, yesterday’s rally seems to lack fundamental standing, said Jack Scoville, a market analyst with Price Futures Group in Chicago.

“It seems to be more like spec-based buying returning with a vengeance,” he said. “I don’t see any other news to account for the rally.”

More rainfall is expected in Argentina and Brazil this week after soaking rains likely helped soybeans and corn in the South American countries over the weekend, according to several forecasters.

The U.S. Department of Agriculture said on Friday that exporters reported sales of 136,000 metric tons of soybeans and 123,000 tons of sorghum to overseas buyers. The USDA on Thursday reported sales of an additional 136,000 tons of soybeans to China and 163,290 tons to Mexico.

Exporters also sold 138,000 metric tons of hard-red winter wheat to Nigeria and 336,500 metric tons of corn to an unnamed country, the agency said.

Soybean futures for March delivery jumped 10 3/4¢ to $13.54 ¼ a bushel overnight on the Chicago Board of Trade. Soymeal rose $2.10 to $431.70 a short ton and soy oil added 0.78¢ to 43.72¢ a pound.

Corn for March delivery gained 5 1/2¢ to $5.17 a bushel.

Wheat futures for March delivery fell 3/4¢ to $6.47 ¾ a bushel, while Kansas City futures gained 2¢ to $6.29 ¼ a bushel.

2. Export Inspections of Corn and Wheat Rise Week-to-Week

Inspections of corn and wheat for overseas delivery rose last week while soybean assessments declined, according to the USDA.

Corn inspections in the seven days that ended on Jan. 21 were reported at 1.39 million metric tons, up from 914,880 tons examined during the previous week, the agency said in a report.

That’s also more than double the 680,459 metric tons assessed during the same week last year.

Wheat assessments came in at 523,901 metric tons last week, up from 282,627 tons a week earlier, government data show.

The total was also well above the 225,825 metric tons examined at the same point in 2020.

Soybean inspections last week totaled 1.98 million metric tons, down from the 2.27 million tons examined the previous week.

Still, that was well above the 1.06 million tons assessed during the same week last year, the USDA said.

Since the start of the marketing year on Sept. 1, government officials have inspected 18.7 million metric tons of corn for offshore delivery, up from 10.2 million tons during the same timeframe last year.

Soybean assessments since the beginning of September are at 45.3 million metric tons, well ahead of the 25.2 million tons examined during the same period a year earlier, the agency said.

Wheat inspections since the beginning of the grain’s marketing year on June 1 now stand at 16.1 million metric tons, slightly behind the year-earlier pace of 16.2 million tons, the USDA said in its report.  

In a separate report, the Agriculture Department said there were 534.3 million pounds of beef in storage at the end of December, up from 480.1 million pounds on the same date a year earlier.

Pork in storage totaled 408.4 million pounds, the agency said. That’s down considerably from the 580.5 pounds in warehouses at the same time the previous year.

Pork belly stocks, meanwhile, plunged to 30.7 million pounds from 66.6 million pounds last year, the USDA said.

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3. Winter Weather Continues Tuesday in Parts of Central Midwest

Winter weather continues to blast the Midwest Tuesday morning as winter storm warnings remain in effect in much of Iowa and northern Illinois, according to the National Weather Service.

In central Iowa another 1 to 3 inches of snow is expected in the state where 7 to 12 inches total are forecast, the NWS said in a report early this morning.   

“Plan on snow covered roads and low visibility at times in blowing snow,” the agency said. “Travel is still not recommended in many areas. Road conditions will be slow to improve today even after accumulating snowfall ends.”

In northern Illinois, heavy snow will continue through this afternoon.

Another 2 to 5 inches of snow are expected along with wind gusts of up to 30 miles an hour, the forecaster said.

Travel will be difficult and some power outages are possible thanks to the heavy snow and strong winds, the agency said.

In northern Indiana and southern Michigan, mixed precipitation with up to 2 inches of snow accumulation is possible today, along with some “minor” ice buildup, the NWS said.