3 Big Things Today, August 16
1. Wheat Futures Rise Overnight as Lower Prices May Spur Demand
Wheat futures were higher in overnight trading on speculation that demand for U.S. supplies will improve after prices dropped yesterday.
Chicago wheat lost almost 12¢ on Tuesday after an unexpected bump in crop ratings. That, analysts said, may draw buyers seeking supplies, as it makes U.S. supplies more attractive on global markets.
The price drop also may encourage investors seeking a bargain to snap up supplies, traders said.
Spring wheat was 33% good or excellent as of Sunday, up from 32% a week earlier. The increase was unexpected. Still, the crop was 66% good or excellent a year ago.
Wheat futures for December delivery rose 4¢ to $4.60 a bushel overnight on the Chicago Board of Trade. Kansas City wheat added 4½¢ to $4.58½ a bushel.
Corn futures for December delivery rose ½¢ to $3.69 a bushel in Chicago.
Soybean futures for November delivery added 2½¢ to $9.26¾ a bushel. Soy meal declined a dime to $299.30 a short ton, and soy oil futures rose 0.23¢ to 33.27¢ a pound.
2. NOPA Crush Shows Processors Used More Soybeans in July Than Expected
Data from the National Oilseed Processors Association (NOPA) showed soybean crushers used more soybeans last month than expected.
Processors crushed 144.72 million bushels of soybeans last month, topping forecasts for 143 million bushels, NOPA said in its monthly crush report on Tuesday, according to media reports.
The USDA last week said end users would crush 1.89 billion bushels of soybeans in the 2016-2017 marketing year that ends on August 31.
While that’s down from a prior outlook for 1.9 billion bushels, it’s also up slightly from the prior 12 months, government data show. Total use including crushings, exports, the amount used for seed, and other residual uses will total 4.158 billion bushels this year, the USDA said last week.
That will push ending stocks down to 370 million bushels. The inventories figure is expected to jump in 2017-2018 to 475 million bushels on increased production, according to the government.
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3. Flash Flood Warning Issued For Parts of Eastern Nebraska After Excessive Rain
A flash flood warning is in effect for parts of eastern Nebraska this morning as 2 to 4 inches of rain fell in the region overnight.
“Excessive runoff from heavy rainfall will cause flooding of small creeks and streams, county roads, farmland, and other low-lying spots,” the National Weather Service said in a report early Wednesday.
An additional inch or two may fall again today as storms move in from the south, according to the forecaster.
Heavy rainfall and localized flooding are also possible in parts of the Mississippi Valley and the Eastern Plains throughout the week. Severe thunderstorms are also forecast for much of the Southern and Central Plains this week, the NWS said.
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