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3 Big Things Today, June 28

Grains, Beans Slightly Higher Overnight; Dollar Hits Weakest Level Since October.

1. Grains, Soybeans Higher Ahead of Friday’s Planted Acres, Grain Stocks Reports

Grains and beans were slightly higher in overnight trading ahead of Friday’s Planted Acreage Report and Grain Stocks Report.

Traders expect corn acres to be down and soybean acres to be up in this weeks’ report, according to analysts.

Allendale’s Rich Nelson, however, said the report could show an increase in corn planted area because of the way the Department of Agriculture surveys farmers and believes the government will not make any adjustments for prevent-planted acreage.  

Prices also are getting a bid this morning due to the dollar being at its weakest since October.

Soybean futures for July delivery rose 1¾¢ to $9.19¼ a bushel overnight on the Chicago Board of Trade. Soy meal gained $1.50 to $295.50 a short ton, and soy oil fell 0.14¢ to 31.94¢ a pound.

Corn futures added ½¢ to $3.68¼ a bushel in Chicago.

Wheat for July delivery rose 1½¢ to $4.70½ a bushel overnight, while Kansas City futures gained 1½¢ to $4.77¼ a bushel.


2. Dollar Falls to Lowest in Nine Months on Political Uncertainty, Boosting Demand Outlook

The dollar fell to the lowest in almost nine months on political and economic worries, which might be good new for U.S. agricultural producers.

The greenback is headed for the lowest closing price since October 5 after Republican leaders pushed back a vote on the Senate healthcare bill until after the July 4 recess. That leaves in doubt other policy changes including tax reform.

Uncertainty in the U.S. combined with a speech from European Central Bank President Mario Draghi yesterday that was positive about the European economy, which gave the euro a boost, are all weighing on the greenback.

A speech by Federal Reserve Chair Janet Yellen didn’t offer support for the dollar.

While the weaker dollar may not be seen as much of a positive politically, it certainly is for producers of goods in the U.S., including farmers.

Demand for dollar-denominated goods improves with a weaker currency, as it gives overseas buyers more purchasing power. In times when the greenback is weaker, export sales are generally expected to be robust.

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3. Rain Expected in Much of Midwest as Storms Move East, Some Severe Weather Forecast

Rain is expected in much of the Midwest today as a storm that moved over from the Rockies continues to push east.

The best chance of rainfall will be over eastern Nebraska, western Iowa, and southern South Dakota, though most of the surrounding states also have a decent chance of precipitation, according to the National Weather Service. Eastern Iowa and western Illinois likely will see rain.

Two rounds of storms are expected with the first hitting this morning and early afternoon. The area will receive a break as the second set moves through.

Some of the weather produced by the first round of storms could be severe with damaging winds, large hail, torrential downpours, and isolated tornadoes all possible. The second set of storms should be more calm and bring only light rain, according to the NWS.

More storms in the eastern Midwest are likely for the rest of the week as the system continues to move east, and chances for rainfall are good through at least Tuesday, the weather service said.

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