3 Big Things Today, July 6
1. Wheat Drops Amid Profit-Taking After Prices Hit Two-Year Highs
Wheat prices plunged and corn and soybeans were lower in overnight trading as investors who had bet on higher prices booked profits after the recent run-up.
Chicago wheat futures had risen for six straight days to the highest level in two years amid extremely dry weather in the Northern Plains, before profit-taking started overnight.
Corn and beans, which had been rising alongside wheat, also decline as traders exited their long positions, analysts said.
Fundamentally, not much has changed overnight. Much of North Dakota is still suffering from drought conditions and little rain is seen for at least the next two weeks in the entire Northern Plains. That’s putting not only spring wheat at risk but also stunting the growth of corn and soybeans.
Wheat for September delivery fell 16¢ to $5.44 a bushel overnight on the Chicago Board of Trade. Kansas City futures declined 16¼¢ to $5.53¼ a bushel.
Corn for December delivery lost 6¼¢ to $3.97¾ a bushel in Chicago.
Soybeans for November delivery fell 4½¢ to $9.89¾ a bushel overnight. Soy meal lost $1.40 to $324.20 a short ton, and soy oil futures declined 0.14¢ to 33.57¢ a pound.
2. Spring Wheat Conditions Lowered on Dry Weather; Corn Ratings Rise, Beans Fall
Spring wheat conditions were lowered as hot, dry weather in the Northern Plains intensifies, while corn ratings improved in the week through Sunday.
Spring wheat was rated 37% good or excellent as of July 2, down from 40% the prior week, according to the U.S. Department of Agriculture. In North Dakota, the biggest grower of the variety, 41% earned top ratings.
About 59% of the crop was headed, ahead of the five-year average of 54% and the prior week’s 36%, the USDA said in a report that had been delayed due to the Fourth of July holiday.
Corn, meanwhile, was rated 68% good or excellent, up from 67% a week earlier. About 10% of the crop was silking, behind the average of 13% for this time of year.
Soybean conditions were lowered to 64% good to excellent, down from 66% the prior week. Some 18% was blooming as of Sunday, just ahead of the average. About 98% of the crop has now emerged from the ground, the USDA said.
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3. Severe Storms Expected in Northern Wisconsin While Most of Midwest Remains Dry
Severe thunderstorms are possible in the northern Midwest – just east of the dry spring wheat area – and the Great Lakes region today.
Damaging winds, large hail, heavy rainfall, and possibly some tornadoes are expected today in northern Wisconsin and a sliver of extreme northeastern Minnesota, according to the National Weather Service.
Farther south, only isolated thunderstorms are expected in much of the Midwest from Nebraska to Indiana. The weather systems recently have been unpredictable and weak, according to meteorologists from MDA Weather Services in Gaithersburg, Maryland.
Most of the Midwest is expected to be hot and dry today.
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