3 Big Things Today, August 26, 2022
1. Soybeans, Grains Surge in Overnight Trading
Soybean and grain futures jumped in overnight trading on forecasts for dry weather and crop stress in some parts of the U.S. Corn Belt.
Crop stress has been and will continue to be persistent in parts of South Dakota, Minnesota, Nebraska, Kansas, Iowa, Illinois, Indiana and Michigan into next week, Commodity Weather Group said in a report.
A quarter of corn and soybeans will be left dry, though some showers in the longer-term outlook may reduce stress, the forecaster said.
In the Delta region, rains will slow the harvest and loading at ports in the next six to 15 days, CWG said.
Little or no rain has fallen in much of Nebraska, Kansas and Missouri in the past week, according to the National Weather Service's precipitation page.
Some areas in the Dakotas and northern Oklahoma also were dry in the past seven days.
Just over 76% of Nebraska was suffering from drought conditions as of Aug. 23, little changed week-to-week, the U.S. Drought Monitor said its weekly report yesterday. While that sounds bad, it's actually an improvement from the 94% that was seeing drought conditions three months ago.
Roughly 72% of Kansas was suffering from drought conditions, also little changed week-to-week but up from 65% three months ago, the monitor said.
Iowa and Illinois, the biggest producers of corn and beans in the U.S., were a mixed bag.
About 39% of Iowa was suffering drought this week, unchanged from the previous week, but up from only 6.9% three months ago.
Only 6.7% of Illinois was seeing drought, up from 5.2% a week ago and an increase from zero percent three months ago, the Drouth Monitor said in its report.
Soybean futures for November delivery jumped 11 1/2¢ to $14.42 ¾ a bushel overnight on the Chicago Board of Trade. Soymeal was up $4.50 to $418.80 a short ton, while soybean oil futures were up 0.05¢ to 65.96¢ a pound.
Corn futures for December delivery rose 6 1/4¢ to $6.56 ¼ a bushel.
Wheat for December delivery added 6¢ to $7.95 a bushel while Kansas City futures gained 3 3/4¢ to $8.70 a bushel.**
2. Crops in Minnesota Look Good as Crop Tour Closes
The Pro Farmer Crop Tour came to an end with a bang after four days as Minnesota yields were projected above both the year-earlier and three-year average forecasts.
Corn yield in the state are expected by tour participants at 190.4 bushels an acre, Pro Farmer said in a report.
That's up from 177.4 bushels an acre projected last year and up from the average of 181 bushels.
Ear counts also were up 3.3% year-over-year to 103.7, which was a 5% increase from the three-year average, the company said.
Soybeans also looked good in the Land of 10,000 Lakes.
Tour participants measured 1,100.8 pods in a 3-foot by 3-foot area, on average, up from 1,027.3 a year earlier and ahead of the average of 1,026.2, according to Pro Farmer.
Pods in a three-foot row jumped 5.3% from last year and were up 5.1% to 772.7 from the average.
Moisture in the state surged 77% year-over-year and 33% from the normal amount for this time of year, the tour said.
Pro Farmer is expected to release final results from the four-day tour this afternoon.
3. Fog and Storms Expected in Parts of Minnesota, Wisconsin
Dense fog is expected in parts of central and southern Minnesota and west-central Wisconsin this morning that could reduce visibility and make driving dangerous, according to the National Weather Service.
Visibility will be reduced in some areas to less than a quarter mile, the NWS said in a report early this morning.
Storms will move into the area this weekend with the best chances in western Wisconsin late tomorrow afternoon, the agency said.
"An isolated severe storm along with locally heavy downpours will be possible with the activity later Saturday and Sunday," the NWS said.
Further south in southern Illinois and Indiana, isolated thunderstorms are possible this afternoon.
Heavy rain and lightning will begin this weekend and last through Tuesday in the region, the agency said. Storms also are possible in parts of eastern and central Missouri this afternoon.