1. Soybean futures lower in overnight trading
Soybean futures plunged in overnight trading on concerns about demand for U.S. supplies and as the harvest rolls on in parts of Brazil.
U.S. exporters have shipped 27.3 million metric tons of soybeans to overseas buyers since the marketing year started on Sept. 1, according to data from the Department of Agriculture.
That’s down 23% year-over-year, USDA said.
Commitments to purchase U.S. beans have dropped 19% from the same period last year.
In Brazil, the world’s largest exporter of soybeans, the harvest in Parana was 25% complete as of Feb. 5, according to the state government’s Department of Rural Economy, or Deral. About 36% of the country’s first corn crop was collected.
Investors also are squaring positions ahead of tomorrow’s monthly supply and demand reports from USDA.
Analysts polled by Reuters said they expect USDA to cut its outlook for soybean and corn production forecasts for Brazil.
Soybean production in the 2023/2024 marketing year likely will be projected by the agency at 153.2 million metric tons, down from the January outlook for 157 million tons.
Corn production will probably be seen at 124.3 million metric tons, down from the previous projection of 127 million tons.
Brazilian consultancy Conab also will update its supply and demand estimates tomorrow.
Soybean futures for March delivery dropped 12¾¢ to $11.86¾ a bushel overnight on the Chicago Board of Trade. Soymeal was down $5.10 to $353.70 a short ton and soy oil rose 0.06¢ to 46¢ a pound.
Corn futures were down 4½¢ to $4.34¼ a bushel.
Wheat for March delivery fell 2½¢ to $5.92½ a bushel, and Kansas City futures lost 1¢ to $6.17½ a bushel.
2. AGCO revenue, earnings rise year-on-year
AGCO, the maker of ag machinery and technology, said Tuesday that sales and per-share earnings rose year-over-year in 2023.
Sales came in at $14.4 billion last year, up from $12.7 billion in 2022, the company said in a statement. Net income was $1.17 billion, up from $874.7 million.
Earnings per share jumped to $15.63 from $11.87, the company said.
North American sales totaled $3.75 billion, South American revenue was reported at $2.23 billion, sales in Europe and the Middle East led at $7.54 billion, and Asia-Pacific revenue was $885 million, AGCO said.
Asia-Pacific was the lone decliner with sales falling 2.5% year-over-year, the company said.
Global sales in 2024 are expected to fall to $13.6 billion and earnings are forecast to drop to $13.15 a share.
Chief Executive Eric Hansotia said the company will remain focused on growth initiatives and improving efficiencies.
“More challenging global market conditions are expected in 2024 due to reduced commodity prices and modestly lower farm-income expectations,” he said. “Despite a lower sales forecast, we expect higher and more resilient margins compared to past cycles due to structural improvements in our business.”
3. Winter weather hitting Montana, Dakotas
Winter weather advisories have been issued for much of Montana and parts of the Dakotas, according to National Weather Service maps.
Mixed precipitation is forecast today and tonight for eastern Montana and western North Dakota and South Dakota, the NWS said in a report early this morning.
Three to 5 inches of snow are expected in the area along with ice accumulations of about a tenth of an inch. Winds will gust up to 35 mph, the agency said.
“Travel could be very difficult with ice road conditions,” the NWS said. “These conditions can stress newborn livestock.”
More snow and freezing rain are in the forecast for tonight. Winter weather will last until early Friday, the agency said.
Source; www.agriculture.com
Discussion about this post