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3 Big Things Today, July 12

Grains, Beans Lower in Overnight Trading; USDA Likely to Raise Corn, Lower Bean Stock Estimates.

1. Grains, Beans Lower Overnight Ahead of WASDE Report

Grain and soybean prices were lower overnight as investors liquidate positions and book profits ahead of today’s World Agricultural Supply and Demand Estimates (WASDE) report.

The USDA will release the WASDE report along with Crop Production and World Agricultural Production reports at noon in Washington.

Investors who had bet on higher prices likely are closing out contracts on concerns that the report will have some bearish overtones, which could cause prices to decline, analysts said.

In weather news, it’s still hot in much of the Midwest and extremely dry in the Northern Plains. The spring wheat crop in the region is already damaged and corn and soybeans aren’t too far behind if rain doesn’t fall soon, forecasters said.

Corn for December delivery lost 6¼¢ to $4.08 a bushel overnight on the Chicago Board of Trade.

Wheat for September delivery fell 5½¢ to $5.47½ a bushel, and Kansas City futures declined 5¼¢ to $5.52¼ a bushel.

Soybeans for November delivery lost 10¾¢ to $10.32½ a bushel overnight. Soy meal fell $3.30 to $342.90 a short ton, and soy oil futures declined 0.28¢ to 34.404¢ a pound.

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2. USDA Likely to Raise Corn Stocks Estimates, Lower Bean, Wheat Forecasts

Analysts said it’s likely the USDA will raise its 2016-2017 and 2017-2018 corn stockpiles estimates when it releases its World Agricultural Supply and Demand Estimates report at noon in Washington today.

Corn carryout for 2016-2017 will probably be pegged by the USDA at 2.31 billion bushels, up from the agency’s forecast for 2.295 billion a month ago, according to trade estimates.

For 2017-2018, inventories are expected at about 2.17 billion bushels, up from 2.11 billion forecast in June.

Soybean inventories for the 2016-2017 marketing year will be pegged by the USDA at about 430 million bushels, down from the July outlook for 450 million. Stocks are seen at 473 million bushels for 2017-2018, down from 495 last month.

Wheat stockpiles for the marketing year that started on June 1 are pegged at about 875 million bushels, down considerably from the 924 million the USDA expected last month.  

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3. Heat Advisories Issued For A Chunk of Central Midwest With Indexes Reaching 107˚F.

Heat advisories have been issued for a very large chunk of land stretching from southeastern Nebraska south to northeastern Oklahoma and east almost as far as the Illinois-Indiana border.

Temperatures will be in the 90s through the evening hours with heat indexes rising as high as 107˚F., according to the National Weather Service.

The weather in parts of Wisconsin and Michigan will be quite different, as thunderstorms are expected this morning with some potential for flash flooding.

Heavy rainfall likely will cause rivers to breach their banks briefly, the NWS said. The storms will persist throughout the evening, and some of the storms may bring strong winds and large hail. A tornado is possible, as well, the agency said.

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