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3 Big Things Today, June 30

Wheat Futures Rise Again Overnight; Planted Acreage, Grain Stocks Reports Highlight Friday

1. Wheat Futures Surge Again as Canada Acreage Misses Forecasts

Wheat futures surged again overnight after Canada said plantings of the grain were below expectations and dry weather continues in the northern Plains.

Statistics Canada in a report pegged all-wheat plantings, which includes spring, durum, and winter varieties, at 22.4 million acres, down 4% year-over-year and missing expectations for 22.7 million.

The decreased acreage came at the expense of canola, whose plantings surpassed wheat for the first time on record. Growers planted 22.8 million acres with the oilseed, a 12% increase from last year and beating trade estimates, according to Stats Canada.  

Dry weather in the northern Plains is expected to continue for at least the next two weeks, forecasters said.

About two-thirds of North Dakota, the biggest wheat producer, is suffering from drought while the rest is abnormally dry, according to the U.S. Drought Monitor. A year ago, less than 1% of the state was facing drought conditions.

Wheat for September delivery rose 13½¢ to $5.09½ a bushel on the Chicago Board of Trade. Kansas City futures added 13¢ to $5.12½ a bushel.

Corn futures rose 4¢ to $3.73½ a bushel in Chicago.

Soybean futures for July delivery gained 3¾¢ to $9.28½ a bushel overnight. Soy meal gained $1.90 to $298.30 a short ton, and soy oil was unchanged at 32.52¢ a pound.

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2. Big Day in Washington as All Eyes on Planted Acreage, Quarterly Grain Stocks Reports

It’s going to be a busy day for those watching reports from the U.S. Department of Agriculture with both Planted Acreage and Quarterly Grain Stocks due out at noon in Washington.

The acreage report likely won’t contain too many changes or surprises, analysts said. It’s expected to show that growers intend to sow 89.903 million acres with corn this year, down slightly from 89.996 million in the same report three months ago.

Soybean acreage is pegged at 89.749 million acres, up from 89.484 million three months ago. Total wheat acres are seen at 46.070 million acres from 46.059 million.

Quarterly grain stocks may provide more fireworks for the market, but of course that remains to be seen. Analysts have pegged corn inventories on June 1 at 5.12 billion bushels, well above last year’s 4.711 billion.

Soybean inventories, meanwhile, are expected to come in around 983 million bushels, also up from last year when carryout was reported at 872 million bushels.

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3. Thunderstorms Roll Into Indiana After Dropping Rain, Hail in Other Midwestern States

The storms that dropped generous amounts of rain in much of Nebraska and Iowa have moved east into Indiana where there’s almost 100% chance of precipitation today.

The storm blew out of the Rockies earlier this week and left several inches of rain and some more severe weather as it rolled through the Midwest.

Large hail was reported last night in parts of eastern Nebraska and western Iowa, and flood warnings abound in northwestern Missouri and extreme northeastern Kansas, according to the National Weather Service.

The storms making their way into Indiana today likely won’t be as severe and will bring only rain and some strong winds, the NWS said.

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