3 Big Things Today, August 2, 2022
1. Soybean, Grain Futures Lower in Overnight Trading
Soybeans and grains were lower in overnight trading as crop conditions were better than expected.
Sixty percent of the U.S. soybean crop was rated good or excellent as of Sunday, up from 59% a week earlier, the Department of Agriculture said in a report.
Analysts polled by Reuters were expected 58% to earn top ratings.
Forty-four percent of beans were setting pods, up from 26% a week earlier, but behind the prior five-year average of 51%. Some 79% were blooming, up from 64% and the average of 80% for this time of year, the agency said.
About 61% of corn was in good or excellent condition at the start of the week, unchanged week-to-week, the USDA said, but ahead of analyst forecasts for 60%.
Twenty-six percent was in the dough stage, double the previous week, but still behind the normal 31%. Eighty percent was silking, up from 62% last week and down from the normal 85%, the government said.
Seventy percent of spring wheat in the U.S. earned top ratings, up from 68% a week earlier and ahead of the forecast compiled by Reuters for 67%. The crop was almost entirely headed at the beginning of the week, the agency said.
The winter-wheat harvest rolls on, also putting downward pressure on prices, with 82% in the bin as of Sunday, up from 77% a week earlier but just behind the 85% average for this time of year.
A cargo ship carrying the first load of Ukrainian grain under an agreement allowing agricultural products through a naval blockade in the Black Sea was scheduled to leave the port of Odesa last night and anchor in Istanbul, Turkey, later today, according to media reports.
Another call between Russia and Turkey is reportedly being planned for later this week as the deal must be renewed every four months.
Soybean futures for November delivery fell 11¢ to $13.95 a bushel overnight on the Chicago Board of Trade. Soymeal gained $3.80 to $403.10 a short ton, while soybean oil futures declined 1.76¢ to 61.5¢ a pound.
Corn futures for December delivery dropped 8¢ to $6.01 3/4 a bushel.
Wheat for September delivery plunged 17 1/2¢ to $7.82 ¾ a bushel while Kansas City futures lost 18 1/2¢ to $8.48 a bushel.**
2. Inspections of Corn, Beans For Export Rise Week-to-Week
Inspections of corn and beans for overseas delivery rose in the seven days that ended on July 28, while wheat assessments declined, according to the USDA.
Corn inspections rose to 856,938 metric tons last week, up from 753,793 tons a week earlier, the agency said in a report.
The total was still well below the 1.47 million tons assessed during the same week a year earlier.
Examinations of soybeans for offshore delivery improved to 555,083 metric tons from 392,480 tons the previous week and above the 185,723 tons that were inspected at the same point last year, the government said.
Wheat inspections, meanwhile, declined to 256,601 metric tons from 475,526 tons a week earlier and 405,215 tons a year earlier.
Since the start of the marketing year on Sept. 1, the USDA has inspected 51.9 million metric tons of corn for export. That's down from 63.1 million tons during the same timeframe a year earlier.
Soybean assessments since the beginning of September now stand at 53.6 million metric tons, down from 58.4 million tons during the same period last year, the agency said.
Wheat inspections since the start of the grain's marketing year on June 1 are at 2.85 million metric tons, behind the 3.79 million tons examined for offshore delivery at the same time in 2021, the USDA said in its report.
3. Heat Wave Remains Over Central Midwest
Another heat wave is parked over the central U.S. with heat advisories and red-flag warnings stretching from northern South Dakota into eastern Arkansas, according to the National Weather Service.
In west-central Nebraska, heat indexes are forecast as high as 103 degrees today, the NWS said in a report early this morning.
A red-flag warning, indicating extremely dry conditions, also is in place for the area starting at 4 p.m. this afternoon and running through 4 a.m. tomorrow morning.
Winds will gust up to 50 miles an hour and relative humidity will be extremely low.
"Scattered thunderstorms will develop this afternoon and tonight with most of them being dry," the NWS said. "The expected lightning with little rain should increase the number of wildfire starts."
In most of Iowa, heat indexes are forecast from 100 to 105 degrees Fahrenheit, the agency said.
Those working outside are advised to be aware of the symptoms of heat illness, the NWS said