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3 Big Things Today, May 25

Corn, Soybeans Rise on Wet Weather; Ethanol Production Down First Week in Three.

1. Corn, Soybeans Higher as More Wet Weather Moves Into Midwest

Corn and soybeans were higher in overnight trading as another round of wet weather hits the Midwest.

Rains are forecast to be heavy in the next five days with 2 to 4 inches falling in parts of Ohio, with the southern and eastern Midwest also expected to see precipitation, according to Commodity Weather Group.

There could be a break in the weather in parts of the northern Midwest starting Sunday after the storms clear out, CWG said.

Wheat futures also gained as speculative investors cover their short positions amid uncertainty about the health of the hard red winter wheat crop after the late-April snowstorm and a bout of wheat streak mosaic that’s reportedly hurting yields.

Corn futures for July delivery rose 1¼¢ to $3.72½ a bushel overnight on the Chicago Board of Trade.

Soybean futures gained 2¼¢ to $9.50½ a bushel overnight. Soy meal rose 50¢ to $306.90 a short ton, and soy oil futures added 0.17¢ to 32.45¢ a pound.

Wheat for July delivery rose 2¢ to $4.34½ a bushel in Chicago, and Kansas City futures were 2¾¢ higher at $4.35½ a bushel.

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2. Ethanol Production Down First Time in Three Weeks, Stays Above 1 Million Mark

Ethanol production was down for the first time in three weeks, but still managed to stay above the average of 1 million barrels a day.

Output in the seven days that ended on May 19 declined to 1.01 million barrels a day, on average, down from 1.027 million the prior week, the Energy Information Administration said in a report.

Production fell below the 1 million-barrel-a-day mark throughout April but has been above that level every week in May, government data show.

The U.S. Department of Agriculture said earlier this month that it expects ethanol companies to use 5.45 billion bushels of corn in the marketing year that ends on August 31. That figure will increase to 5.5 billion in the 2017-2018 marketing year, according to the USDA.

Ethanol stockpiles last week rose to 22.684 million gallons, up from 23.414 million, the second straight weekly increase. There were no imports reported.

Gasoline demand is expected to increase for the Memorial Day weekend, a traditional travel holiday and the unofficial start of summer. Demand for gasoline rose to 407.6 million gallons a day, on average, last week, according to the EIA.

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3. Thunderstorms Moving Into Parts of Iowa Tonight, May Stick Around Tomorrow

More thunderstorms are expected to roll through parts of Iowa starting tomorrow, but severe weather isn’t expected, according to the National Weather Service.

There’s a chance of more storms on Saturday along with a developing warm front, and that could bring some harsh weather to parts of Illinois including wind gusts, hail, and lightning, the NWS said in a report early on Thursday.

Meanwhile, flooding is expected to continue along the Mississippi River and its tributaries throughout Missouri and Illinois all the way down to the Gulf.

Flooding is also expected to linger in parts of Indiana including Fort Wayne, where heavy rains recently fell, the NWS said.

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