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1. Soybeans decline in overnight trading
Soybean futures were lower in overnight trading as the harvest in Brazil advances and on pressure from falling soy oil prices.
Corn was lower and wheat futures were mixed.
Brazil’s soybean harvest is now more than 90% complete, according to consultancy Conab, adding supplies to the global market and weighing on prices.
The U.S. Department of Agriculture left its outlook for production in the South American country, the world's largest exporter of soybeans, unchanged last month at 155 million metric tons. Analysts had expected USDA to lower its forecast.
Soy oil futures closed more than 3% lower yesterday on falling crude oil prices and slack demand from biofuel manufacturers.
That pressured the entire soy complex and continues to weigh on prices this morning. Soy oil futures were little changed in overnight trading.
West Texas Intermediate oil futures were down another 1.4% overnight after falling to the lowest level since late March.
Soybean futures for July delivery fell 5½¢ to $11.57½ a bushel overnight on the Chicago Board of Trade. Soymeal was down $5.60 to $346.30 short ton, and soy oil was up 0.05¢ to 43.06¢ a pound.
Corn futures were down 1½¢ to $4.45¼ a bushel.
Wheat futures for July delivery rose 3¢ to $6.06¼ a bushel, and Kansas City futures lost 3½¢ to $6.31¾ a bushel.
2. ADM revenue, net profit plunge in Q1
Archer Daniels Midland revenue fell to $21.8 billion in the three months that ended on March 31, down more than 9% from the same quarter a year earlier, the company said in a statement.
Segment operating profit on an adjusted basis dropped 24% to $1.32 billion.
Revenue in the ag services and oilseeds business declined to $17.2 billion from $18.6 billion the previous year.
Net profit in the segment fell 29% to $864 million as ag services dropped 33%, crushing was down 27% and refined products lost 48%. Profits in its Wilmar division jumped 37%, though it’s the smallest segment from a revenue perspective.
Slower global trade and risk management comparisons led to the decline in ag services operating profit.
“Slower farmer selling also negatively impacted export volumes and margins in South America,” ADM said.
The company processed 9.39 million metric tons of oilseeds in Q1, up 8.8% year over year, and 4.41 million metric tons of corn, up 0.3% from the same quarter last year, ADM said.
3. Red flag warnings issued for the southern Plains
Red flag warnings have been issued for parts of eastern New Mexico, southeastern Colorado, and counties in the Oklahoma and Texas panhandles, National Weather Service maps show.
Winds in the panhandles will be sustained from 15 to 25 mph with gusts of up to 35 mph expected, NWS said in a report early this morning.
Relative humidity will drop to around 8%.
In central Illinois, scattered thunderstorms are forecast for tonight, potentially bringing heavy rain to the area, the agency said.
Storms are possible through Friday morning with some containing hail and gusty winds.
“Occasional thunderstorms are possible over the weekend and early next week,” NWS said.
