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3 Big Things Today, July 21
1. Corn, Beans Rise on Technical Buying, Expected Strong Demand
Corn and soybeans jumped overnight on technical buying, as some investors feel prices fell too much and as export sales are expected to be strong in today’s U.S. Department of Agriculture report.
Some speculative investors are likely buying in overnight trading after prices plunged the past two sessions, believing the decline was too much, too fast, analysts said.
Demand also is expected to be strong, as export sales for the week through July 14 are pegged at 300,000 to 500,000 metric tons for old-crop soybeans and 500,000 to 700,000 tons for new-crop beans.
For corn, sales for delivery in 2015-2016 are forecast by analysts from 400,000 to 600,000 tons. For new-crop corn, the number is projected from 500,000 to 700,000 tons.
Corn futures for December delivery rose 3¢ to $3.47¼ a bushel overnight on the Chicago Board of Trade.
Soybean futures for November delivery added 14¢ to $10.23 a bushel. Soy meal futures for December delivery jumped $4.70 to $352.50 a short ton, and soy oil rose 0.29¢ to 31.54¢ a pound.
Wheat futures for September delivery rose 3½¢ to $4.16½ a bushel in Chicago, while Kansas City wheat gained 4½¢ to $4.11¼ a bushel.
2. Excellent Yields Reported in Kansas as U.S. Winter Wheat Harvest Nears Completion
The U.S. winter wheat crop was 76% collected as of Sunday, up from 66% the prior week despite rain in some parts of the Southern Plains and Midwest that slowed harvest, according to the Department of Agriculture.
The harvest in Kansas was 98% complete, while Oklahoma growers were finishing collecting their grain. The crop this year was a bin-buster, industry group Kansas Wheat said in its final harvest report this week.
“After battling Mother Nature’s sprinkler for the last few weeks, wheat harvest has almost drawn to a close for 2016, a relief for many farmers across the state,” Kansas Wheat said. “This year’s bounty has surpassed nearly everyone’s expectations.”
The USDA pegged the Kansas crop at 454 billion bushels, which would make it the sixth-largest on record. Some growers are reporting yields consistently topping 80 bushels an acre, which is unheard of in some parts of the state, the biggest grower of winter wheat.
“This has just been an extraordinary harvest,” Kurt Anderson, manager of the Decatur Coop Association in Decatur, Kansas, told the industry group. “I think it’s going to turn out to be a once-in-a-lifetime harvest for most of these producers.”
While the rain bumped yields to lofty levels, it also brought down test weights, Kansas Wheat said.
Yields in Morland, Kansas, are being reported in the upper-70-bushel range, while even hail-damaged wheat was averaging in the mid-60s, an “unbelievable” number for the area, the group said in its report.
Larry Bell, manager of the Frontier Ag location in Morland, told the group that grain is being stored on the ground as bins are chock-full.
“It didn’t take too long for our location to fill up and to start some wheat ground piles,” Bell said, according to Kansas Wheat. “It’s one of the largest harvests I’ve seen in my 20 years of experience.”
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3. Extremely Hot Weather Continues as Heat Dome Settles Over Central U.S.
Most of the central U.S. from central Minnesota to central Louisiana is in some sort of extreme heat watch or warning this morning, according to the National Weather Service.
The states involved in the heat wave are under what has been described as a heat dome by some, which is causing hot weather to park over the area. Heat indexes are reaching as high as 110˚F. in some areas and are expected to stay that way for the rest of the week.
“Hot and very humid conditions will push the heat index to well over 100˚F. across a large portion of the central U.S. this week,” the NWS said in a report on Thursday morning. “Excessive heat warnings and heat advisories are in effect for much of the Plains, Mississippi Valley, Midwest, and southern states. The heat will spread eastward by this weekend. Be very cautious if you must do outdoor activities during the afternoon and evening.”
The saving grace for crops thus far has been rainfall that’s accompanied the heat wave. More showers are expected in parts of Iowa and Illinois today through Saturday, according to the NWS.
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