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3 Big Things Today, July 19
1. Soybeans, Grains Higher as Hot Weather Persists
Soybeans and grains were higher in overnight trading as the heat wave continues in the U.S., potentially affecting crops.
Temperatures will be in the high 90s for most of the Midwest with heat index values approaching 120°F. in parts of Iowa, Illinois, and Indiana.
The excessive heat could negatively impact plants that have a shallow root system from being planted so late. So far the crops look like they’re in decent condition with 58% of corn and 54% of soybeans rated good or excellent at the start of the week, according to the U.S. Department of Agriculture.
The heatwave is expected to last through tomorrow, the National Weather Service said.
Soybean futures for November delivery rose 3¼¢ to $9.02¼ a bushel overnight on the Chicago Board of Trade. Soymeal added $1.30 to $308.30 a short ton and soybean oil rose 0.06¢ to 28.11¢ a pound.
Corn futures for December delivery gained ¼¢ to $4.30 a bushel overnight.
Wheat for September delivery rose 3¢ to $4.96½ a bushel, while Kansas City futures gained 2½¢ to $4.35¼ a bushel.
2. Export Sales of Corn, Beans Lower Week-to-Week While Wheat Increases
Export sales of corn plunged week-to-week, soybeans also declined while wheat sales jumped, according to the U.S. Department of Agriculture.
In the seven days that ended on July 11, corn sales to overseas buyers dropped 60% to 200,000 metric tons, the USDA said in a report. That’s down 21% from the prior four-week average.
Japan was the big buyer at 144,300 metric tons, followed by unknown customers at 31,200 tons and Jamaica at 18,500 tons. Canada bought 14,300 tons and Mexico was in for 10,500 tons. Colombia canceled a cargo of 31,700 tons of corn.
Sales for the 2019-2020 marketing year that start on Sept. 1 came in at 133,000 tons.
Soybean sales fell 3% from the prior week and 68% from the four-week average, the USDA said.
Indonesia bought 123,500 metric tons, Germany was in for 62,100 tons, Bangladesh purchased 53,200 tons, Peru took 49,800 tons, and Japan bought 22,300 tons. An unknown buyer canceled shipments for 171,100 metric tons, and Mexico nixed a cargo of 32,000 tons.
For the 2019-2020 marketing year, sales were reported at 198,400 metric tons, the government said.
Wheat sales for the grain’s marketing year that started on June 1, meanwhile, were up 22% week-to-week at 2% from the prior average at 347,300 tons.
Mexico bought 166,500 metric tons, South Korea took 80,000 tons, Italy was in for 31,000 tons, Haiti bought 27,500 tons, and Costa Rica purchased 16,000 tons. An unknown buyer canceled a shipment for 32,300 tons, the USDA said.
3. Heat Wave Covering Two-Thirds of U.S. Forecast Through Tomorrow as Indexes Hit 118
The heat wave continues as indexes are expected to reach into the 110s in two-thirds of the U.S. again today and tomorrow, according to the National Weather Service.
In Iowa, temperatures are expected to rise into the high 90s with dewpoints in the 70s that will create a heat index as high as 115°F., the NWS said in a report this morning. Overnight lows will be around 80°F.
In northern Illinois and Indiana, an excessive heat warning remains in effect until 8 p.m. Saturday.
Temperatures will reach about 98°F. today and tomorrow, but heat indexes will top out at 118°F.
Heat index warnings are in place from southeastern South Dakota, south to the Kansas-Oklahoma border, and east to the Atlantic Ocean. The warnings stretches north into central Wisconsin and central Michigan, weather maps show.
Around the heat warnings are heat watches that increase the size of the heat wave’s footprint.
Outdoor work and other activity is not advised as the heat index values are dangerous and can cause all sorts of illnesses, the NWS said.