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3 Big Things Today, July 17

Wheat, Corn Lower Overnight; Investors Unexpectedly Bullish on Corn, Beans.

1. Wheat, Corn Lower Overnight While Soybeans Gain

Wheat and corn were lower in overnight trading while soybeans were slightly higher.

Wheat fell on forecasts for a chance of thunderstorms in much of North Dakota each day this week. The  National Weather Service said in an early Monday forecast that storms are predicted to hit several counties in central North Dakota today.

Any precipitation that will fall will help parched spring wheat and corn crops in the region.

Soybean turned higher late in the overnight session on hints that the weak dollar will make U.S. supplies more attractive to overseas buyers. The greenback fell to the lowest level in more than nine months on Friday, boosting purchasing power for importers.   

Wheat for September delivery fell 2¼¢ to $5.08½ a bushel overnight on the Chicago Board of Trade, and Kansas City futures lost 5¢ to $5.08½ a bushel.

Corn for December delivery declined 2½¢ to $3.87 a bushel.

Soybeans for November delivery rose 1½¢ to $10.03 a bushel overnight. Soy meal fell 50¢ to $330.70 a short ton, and soy oil futures added 0.07¢ to 33.75¢ a pound.

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2. Money Managers Unexpectedly Bullish on Corn, Soybeans Last Week

Money managers were unexpectedly bullish on corn and soybeans in the week that ended on July 11, as hot, dry weather in the Northern Plains concerns investors.

Speculators were net long by 115,066 corn contracts last week, the first net-long positions since March 7 and the biggest such position since June 2016, the Commodity Futures Trading Commission said in a report.

Money managers were net long by 7,212 soybean contracts, the first such position since March 28, according to the CFTC.  

In wheat, speculative investors pushed their bets on higher hard red winter prices to multiyear highs with net longs totaling 72,845 contracts last week, up from 54,574 seven days earlier.

Investors were net long by 53,971 contracts in soft red winter wheat.

Speculators have been increasing their bets on higher agricultural prices recently as extremely hot, dry weather continues to plague the Northern Plains. North Dakota has received little or no rain in the past four weeks, according to the National Weather Service.

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3. Thunderstorms Developing Over Iowa While Extremely Hot Weather Hits Missouri

Some thunderstorms are expected in parts of the Midwest, while temperatures in Missouri and Illinois are expected to be extremely high.

Periods of thunderstorms are expected to push through central Iowa starting tomorrow, which may produce “moderate to heavy” rainfall, according to the National Weather Service. Some severe weather may accompany the storms.

An excessive heat watch is in effect for the northern half of Missouri, the northeastern quadrant of Kansas, and several counties in Illinois, NWS maps show.

Temperatures will be in the triple digits all week with heat indexes topping 110˚F. at times, the agency said. The worst conditions are expected Wednesday through Saturday, and little relief is in sight, according to the report.

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