3 Big Things Today, January 18, 2022
1. Soybean, Corn Futures Drop in Overnight Trading
Soybean futures plunged and corn was lower in overnight trading on expectations for improved moisture conditions in South America.
Rain over the weekend was expected mostly in Mato Grosso, Sao Paulo, and Parana states, though rain also fell in other areas, weather maps show.
Though temperatures are expected to be around 30°C. (86°F.) this week, rain is in the forecast in Sao Paulo every day for at least the next week, weather.com data show.
The precipitation likely will improve soil moisture in the South American country.
Brazilian soybean production in the 2021-2022 marketing year was pegged by the U.S. Department of Agriculture last week at 139 million metric tons, down from a prior outlook for 144 million tons. If realized, that would be just above last year’s output of 138 million tons.
Corn production in the country is seen at 115 million metric tons this year, down from a previous forecast for 118 million metric tons. Still, that would be up from 87 million tons the previous year.
Soybean futures for March delivery plunged 14½¢ to $13.55¼ a bushel overnight on the Chicago Board of Trade. Soymeal dropped $8.70 to $396.90 a short ton and soybean oil futures lost 0.44¢ to 58.02¢ a pound.
Corn futures for March delivery fell 4¾¢ to $5.91½ a bushel.
Wheat futures were higher in overnight trading as hot, dry weather persists in the U.S. Southern Plains.
About 58% of Kansas, the biggest producer of the grain, was suffering from drought conditions last week, up from 52% a week earlier and only 15% three months ago, according to the U.S. Drought Monitor.
About 88% of Oklahoma was seeing drought conditions, little changed week-to-week but well above the 62% that was experiencing drought three months ago.
Wheat for March delivery jumped 9¾¢ to $7.51¼ a bushel overnight while Kansas City futures gained 10¾¢ to $7.55¾ a bushel.**
2. Soil Moisture Extremely Low in Much of Southern Plains
Soil-moisture conditions and snowfall totals in the Southern Plains where hard-red winter wheat is attempting to overwinter are less than ideal, according to maps from the National Oceanic and Atmospheric Administration.
Much of southwestern Kansas, the western half of Oklahoma, and almost all of the Texas panhandle have less than 2 centimeters (0.8 inch) of soil moisture on then NOAA’s soil-moisture percentile scale.
Snowfall totals also aren’t looking good for hard-red winter plants as NOAA data show no snow on the ground in the Southern Plains.
In fact, no snowpack is on the ground from western South Dakota down through Nebraska all the way to the Texas-Mexico border, the maps show.
Little or no precipitation has fallen in the region in the past 30 days, data from the National Weather Service’s precipitation page show.
In Kansas, the USDA on January 3 released a report showing topsoil moisture at the start of the month was 28% adequate or surplus while being rated 72% short or very short. Subsoil moisture at the time was 35% adequate or surplus, while being 65% short or very short, the agency said.
The next crop progress report will be released on January 24.
3. Winter-Weather Advisories Issued For North Dakota, Minnesota
Winter-weather advisories have been issued for several counties in eastern North Dakota and western Minnesota, according to the National Weather Service.
Near blizzard conditions are expected starting at about 11 a.m. in parts of eastern North Dakota with wind gusts of up to 55 mph, the NWS said in a report early this morning. An additional 3 inches of snow are forecast.
The advisories are in effect until midnight.
“Widespread blowing snow could significantly reduce visibility,” the agency said. “The hazardous conditions could impact the evening commute. The dangerously cold wind chills as low as -30°F. could cause frostbite on exposed skin in as little as 10 minutes.”
In northern Iowa and southern Minnesota, meanwhile, a wind-chill advisory will take effect overnight into Wednesday as values are expected to drop as low as -25°F.