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3 Big Things Today, June 12

Beans, Grains Lower in Overnight Trading; USDA Unexpectedly Slashes Corn Production Outlook.

1. Soybeans, Corn Decline as Planting Speeds on Dry Weather

Soybeans and corn were lower in overnight trading as dry weather allows planting to accelerate in much of the Corn Belt.

Some rain is in the forecast for parts of Iowa and Illinois today, but storms are expected to be isolated and scattered, according to the National Weather Service.

Growers should be able to get into their fields, though some ground is likely quite muddy at this point, in many parts of the Corn Belt that have been inundated by rain. As much as six times the normal amount of precipitation has fallen in several Midwestern states in the past 30 days, NWS data show.

Soybean sowing was 60% finished as of Sunday, behind the prior five-year average of 88%, according to the USDA.

About 83% of the corn crop was in the ground, when 99% is normally in by this time of the year.

Soybeans for May delivery lost 3¾¢ to $8.55½ a bushel overnight on the Chicago Board of Trade. Soy meal dropped $1.60 to $312.80 a short ton, while soy oil declined 0.18¢ to 27.04¢ a pound.

Corn futures for May delivery fell 2¾¢ to $4.25 a bushel overnight.

Wheat for May delivery lost ½¢ to $5.17½ a bushel in Chicago, while Kansas City wheat dropped ¼¢ to $4.57¼ a bushel.

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2. USDA Unexpectedly Slashes Corn Acres, Yield in Latest WASDE Report

The World Agricultural Supply and Demand Estimates Report was out yesterday, and it was a bit of a shocker.

Corn production was cut by 1.35 billion bushels, or almost 10%, to 13.68 billion bushels month to month as the USDA lowered its forecasts for area planted and harvested by 3 million acres each and its outlook for yield to 166 bushels an acre from the previous outlook for 176 bushels.

Jeff Kaprelian, a broker with The Hueber Report, said in a note to clients that the corn number was the biggest shock from the report.

“Typically, even in wet years like 2013, the USDA doesn’t adjusted planted acreage until the July report,” he said. “Additionally, dropping yields a full 10 bushels was quite unusual.”

Total use was lowered by 425 million bushels to 14.25 billion, leaving the USDA’s ending stocks forecast at 1.675 billion, down from 2.485 billion predicted last month.

The government also increased its projection for price to $3.80 a bushel from the previous outlook for $3.30 a bushel.

While the USDA slashed corn production, it mostly left its projections on soybeans unchanged.

Planted area is pegged at 84.6 million acres, yield is seen at 49.5 bushels an acre, and output is expected to be 4.15 billion bushels – all unchanged from the May report.

Ending stocks was raised to 1.045 billion bushels from 970 million, according to the USDA.

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3. Scattered Thunderstorms Expected in Central Iowa as Storms Widen in Northern Illinois

Some scattered thunderstorms are expected in central Iowa this afternoon and evening, but nothing severe is in the forecast, according to the National Weather Service.

There’s an additional threat of precipitation heading into the weekend, but again, nothing severe is predicted, the NWS said in a report early this morning.

Some rain also is expected in parts of northern Illinois and Indiana today and tonight as a storm spreads throughout the region.

“While severe weather is not currently expected, slow-moving storms today will be capable of gusty winds, small hail, and locally heavy rainfall,” the agency said.

Flooding is still an issue in many parts of Illinois. The Missouri and Mississippi rivers continue to run over their banks, according to NWS maps.

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