3 Big Things Today, May 14
1. Soybeans, Grains Surge as Focus Shifts to Weather
Soybeans jumped double digits overnight, rebounding from a 10-year low, and corn futures surged as the initial shock of the trade-war escalation with China wore off and weather moved to the fore.
Bean prices dropped to the lowest in a decade yesterday after China said it would raise tariffs on $60 billion worth of U.S. goods including soybean oil, peanut oil, natural gas, and almost 2,500 other products.
Futures, however, rebounded as investors shift their focus to weather.
Widespread rainfall in the Midwest this week will keep producers out of fields. More precipitation is in the forecast for the weekend, which will further delay corn and soybean planting, according to Commodity Weather Group
Spring wheat seeding also may be delayed, as rain is predicted in the six- to 15-day outlook, CWG said in a report.
Corn and soybean planting are well behind schedule due to the ongoing wet weather.
Soybeans for May delivery jumped 15¢ to $8.17½ a bushel overnight on the Chicago Board of Trade. Soy meal gained $3.20 to $290.50 a short ton, and soy oil added 0.26¢ to 26.87¢ a pound.
Corn futures for May delivery rose 7½¢ to $3.64 a bushel overnight.
Chicago wheat for May delivery gained 2¾¢ to $4.39¾ a bushel, while Kansas City wheat added 4¾¢ to $4.01¾ a bushel.
2. Rain Keeps Farmers Out of Fields as Less Than Half Normal Amount of Corn Planted
Persistent precipitation is keeping farmers from getting their crops in the ground.
Only 30% of U.S. corn was in the ground as of Sunday, behind the prior five-year average of 66% for this week, according to the USDA.
In Iowa, 48% was in the ground, behind the average pace of 76% this time of year. Illinois growers were only 11% done with planting compared with the 82% average, the USDA said.
Indiana seeding was 6% complete, behind the average of 57%, and Nebraska planting was 46% finished vs. the 72% average.
About 10% of the crop has emerged nationally. In Iowa, only 5% has come out of the ground, missing the five-year average of 27%. In Illinois, 4% has emerged vs. the normal 49% for this time of year, the government said.
Soybeans planting was 9% finished as of Sunday compared with the prior five-year average of 29%, the USDA said. Iowa seeding was 13% complete, behind the normal 31% for this week, while Illinois growers only had 3% in the ground vs. the 34% average.
Spring wheat was 45% seeded, down from the normal 67%, and 10% has emerged vs. the average of 34%.
Winter wheat, meanwhile, continues to look good, as 64% was rated good or excellent, unchanged week to week but up from 36% at this time last year, the USDA said.
3. Isolated Thunderstorms Forecast For Already Soggy Parts of Iowa, Illinois
Isolated thunderstorms are forecast for parts of eastern Iowa and northern Illinois late this morning and early afternoon, according to the National Weather Service.
Area rivers are still flooding with little relief in sight.
More storms are expected on Thursday afternoon and evening, with large hail and damaging winds the primary dangers, the NWS said in a report early this morning. The weather is predicted to remain “active” through the weekend.
Farther south in Kansas, a few thunderstorms this evening and overnight could be severe with small hail and wind gusts as high as 60 mph, the agency said. Storms likely will return Friday and last through Sunday with some severe.