3 Big Things Today, August 29
1. Grain, Soybean Futures Lower Overnight on Benign Weather Forecasts
Corn and soybeans were lower in overnight trading as weather forecasts in the U.S. and abroad are fairly benign for the next week or more.
Weekend rain favored parts of South Dakota, Nebraska, northwestern Iowa, and parts of Minnesota, which will boost corn and soybeans that have yet to finish.
The U.S. precipitation forecast is otherwise quiet for the next couple of weeks, with some areas receiving normal amounts of rain while others will be below normal, according to Commodity Weather Group.
Hurricane Harvey has moved back into the Gulf of Mexico and is expected to make landfall again, bringing more rain to the Texas Gulf Coast. The storm will bring more rain to parts of the upper Texas coast into southwestern Louisiana.
Corn futures for December delivery fell 2¾¢ to $3.48¼ a bushel overnight on the Chicago Board of Trade.
Soybean futures for November delivery declined 6¼¢ to $9.35 a bushel overnight. Soy meal lost 40¢ to $299 a short ton, and soy oil futures dropped 0.40¢ to 34.56¢ a pound.
Wheat for December delivery fell 4¼¢ to $4.23¾ a bushel in Chicago. Kansas City futures declined 4¢ to $4.21½ a bushel.
2. Soybean Conditions Unexpectedly Improve Week Over Week, Corn Ratings Unchanged
The condition of the soybean crop unexpectedly improved week over week while corn was unchanged.
Some 61% of soybeans were rated good or excellent as of Sunday, up 1 percentage point from the prior week, according to the USDA. Analysts had expected the rating to be unchanged.
Some 93% of the crop was setting pods, and 6% was dropping leaves, which is about average for this time of year.
Corn, meanwhile, was 62% good or excellent, the same as a week earlier and on par with forecasts, the USDA said.
About 86% of the crop was in the dough stage, 44% was dented, and 6% was mature, mostly in the southern states.
The spring wheat harvest is nearing completion with 76% collected, up from 58% a week earlier and the five-year average of 66%, according to the government.
In other news, Statistics Canada, better known as StatsCan, will release its production estimates on Thursday. Analysts expect wheat production to fall to 26.2 million metric tons from 31.7 a year earlier, according to Allendale. Canola output is pegged at 18.6 million metric tons, down from 19.9 million a year earlier, and the corn harvest is seen at 13 million tons, down from 14 million.
3. Harvey Keeps Pounding Texas, Louisiana; Small Storms Expected in Midwest Thursday
Harvey continues to batter parts of Texas and Louisiana as it dropped another 1 to 2 inches of rain in much of southeasten Texas overnight, according to the National Weather Service.
The storm is moving extremely slowly, so the flooding is catastrophic. The storm may produce another 10 to 20 inches of rain through the end of the week along the Texas Gulf Coast and southwestern Louisiana, the NWS said. That would put the total amount of precipitation at more than 50 inches.
In the Midwest, thunderstorms are expected in parts of Nebraska, Minnesota, Wisconsin, and Illinois on Tuesday, which could help finish some crops that still are filling out.
No extremely severe weather is expected, though some high winds and small hail may accompany the fronts, but only in isolated areas, the NWS said.