3 Big Things Today, August 30, 2022
1. Crop Futures Lower Across the Board Overnight
Corn, soybean and wheat futures all fell in overnight trading as some speculative investors take a step back after the recent runup in prices and as some rainfall moves into growing areas of the U.S.
Corn futures rose to the highest level in two months in yesterday's session and wheat hit the highest level since July.
Investors who are long the market, or bet on higher prices, may be taking money off the table and booking profits.
Fundamentally, rainfall is expected in some areas of the eastern Midwest today and northwestern regions on Friday, Don Keeney, an agricultural meteorologist with Maxar, said in a note to clients.
Still, it will be dry Wednesday and Thursday, which may curb soil moisture.
About 57% of the U.S. soybean crop was in good or excellent condition as of Sunday, unchanged week-to-week.
Four percent of the crop was dropping leaves and 91% was setting pods, the U.S. Department of Agriculture said in a report.
About 54% of U.S. corn earned top ratings last week, down a percentage point, the USDA said.
Eight percent of corn was mature, 46% was dented and 86% was in the dough stage at the start of the week.
Wheat prices are being pressured as the spring harvest rolls on in the U.S.
Half the crop was in the bin as of Sunday, up from 33% a week ago but behind the prior five-year average of 71%, the USDA said.
The crop is looking good as 68% was in good or excellent condition as of Sunday, up from 64% a week earlier. At the same point in 2021, only 11% earned top ratings, government data show.
Corn futures for December delivery dropped 10¢ to $6.73 a bushel overnight on the Chicago Board of Trade.
Soybean futures for November delivery fell 20¢ to $14.17 ¾ a bushel. Soymeal was down $6.20 to $420.90 a short ton, while soybean oil futures were down 0.88¢ to 65.56¢ a pound.
Wheat for December delivery lost 10¢ to $8.32 ¾ a bushel while Kansas City futures declined 8 3/4¢ to $9.03 ¾ a bushel.**
2. Export Inspections of Corn, Beans, Wheat All Decline
Inspections of corn, beans and wheat were all lower week-to-week, the USDA said in a report.
Corn assessments in the seven days that ended on Aug. 25 dropped to 689,052 metric tons from 821,533 tons a week earlier, the agency said.
The total, however, was up from the 583,498 tons examined during the same week last year.
Soybean inspections were reported at 436,851 metric tons.
That's down from the 686,827 tons assessed during the same week in 2021, but up from the 387,206 tons examined at the same point a year earlier, the USDA said.
Wheat assessments came in at 520,791 metric tons, down from 594,273 tons a week earlier but up from the 435,399 tons examined at the same point last year.
Since the start of the marketing year on Sept. 1, the USDA has inspected 54.6 million metric tons of corn for offshore delivery, down from 66.1 million tons during the same timeframe a year earlier.
Soybean inspections since the beginning of September now stand at 56.4 million metric ton tons, down from 59.4 million tons in the same period last year, the agency said.
Wheat assessments since the start of the grain's marketing year on June 1 are now at 5 million metric tons, down from 6.2 million tons at the same point a year earlier, the USDA said in its report.
3. Isolated Storms Forecast For Parts of Southern Illinois, Indiana
Isolated showers and storms are expected in parts of southern Illinois and southern Indiana this morning, though no severe weather is expected, according to the National Weather Service.
Some heavy rainfall is in the forecast along with lightning, however, which could cause minor flooding in low-lying areas, the NWS said in a report early this morning.
In eastern Kansas, meanwhile, some "hit-or-miss showers and thunderstorms" are expected early this morning.
"Very small hail, gusty winds and brief heavy rain may accompany the strongest activity," the NWS said.