3 Big Things Today, July 29, 2022
1. Soybeans, Grains Surge in Overnight Trading
Soybean and grain futures were higher in overnight trading as dry weather persists in much of the U.S. Corn Belt.
About 30% of bean and corn areas will be under stress for the next 10 days including parts of the Dakotas, Iowa, Minnesota and Illinois, Commodity Weather Group said in a report.
Temperatures are expected to be in the mid- to upper-90s next week in the northern and western Midwest, the forecaster said in a report on Friday.
The six- to 10-day forecast shows temperatures above to well-above average in much of the western and central Corn Belt. Precipitation is expected to be below average in the eastern two-thirds of the country in the four days ending on Aug. 7, CWG said.
In the past week, a narrow band stretching from western Nebraska through eastern Kentucky saw plentiful rain, but the rest of most growing areas saw little precipitation, according to the National Weather Service precipitation page.
Little or no rain fell in much of the Dakotas, Iowa and Oklahoma in the past seven days, the NWS said.
About 59% of the U.S. soybean crop was in good or excellent condition at the start of the week, down from 61% a week earlier, the U.S. Department of Agriculture said in a report earlier this week.
Some 61% of corn earned top ratings, down from 64% the previous week, the USDA said.
Soybean futures for November delivery jumped 10 1/2¢ to $14.20 ½ a bushel overnight on the Chicago Board of Trade. Soymeal fell $4 to $422. 10 a short ton, while soybean oil futures added 1.65¢ to 64.9¢ a pound.
Corn futures for December delivery were up 9 1/4¢ to $6.28 ¼ a bushel.
Wheat for September delivery surged 21 3/4¢ to $8.38 ¾ a bushel while Kansas City futures added 18 1/2¢ to $9.08 ¼ a bushel.**
2. Corn Export Sales Rise Week-to-Week While Bean Sales Fall
Sales of corn to overseas buyers rose while soybean cancelations resulted in a net-negative last week, according to the USDA.
Corn sales in the seven days that ended on July 21 were reported at 150,300 metric tons, the agency said. That's up from 33,900 tons a week earlier and up noticeably from the prior four-week average.
Mexico was the big buyer at 70,000 metric tons, followed by Japan at 41,700 tons, Colombia at 15,500 tons, Guyana at 10,400 tons and Guatemala at 9,300 tons.
For the 2022-2023 marketing year that starts on Sept. 1, exporters sold 193,700 metric tons of U.S. corn, down from 570,200 tons a week earlier, the government said.
Exports for the week fell 22% to 867,900 metric tons.
Soybean sales, meanwhile, saw net reductions of 58,600 metric tons, a reversal from sales of 203,500 tons a week earlier, due to mass cancelations this week, the USDA said.
The Netherlands bought 57,000 metric tons from U.S. supplies, Egypt purchased 55,000 tons, Mexico was in for 14,500 tons, Indonesia took 13,900 tons and Japan bought 10,800 tons.
An unnamed country canceled cargoes totaling 204,200 tons and China nixed shipments of 30,800 tons.
For 2022-2023, sales were reported at 748,800 metric tons, well above last week's total of 254,700 tons, the agency said.
Soybean exports for the week were reported at 499,900 tons, up 13% week-to-week.
Wheat sales fell 19% from the previous week and 29% from the four-week average as the Philippines purchased 98,100 metric tons, Mexico was in for 67,800 tons, Thailand took 56,300 tons, an unknown country bought 43,000 tons and Honduras was in for 36,000 tons.
Exports for the week came in at 345,800 tons, up noticeably from the previous week, the USDA said in its report.
3. Flood Watches Issued For Parts of Southern Plains
Flood watches have been issued for a large chunk of land stretching from western Arizona into the southern Plains, including much of southwestern Kansas and the Oklahoma and Texas panhandles, according to the National Weather Service.
In southwestern Kansas, excessive runoff from continued rainfall may result in flooding of rivers and other waterways in the area, the NWS said in a report earlier this morning.
The flood watch is in effect from 7 a.m. today through tomorrow afternoon.
Showers and thunderstorms will spread across southwestern Kansas into central counties in the state this morning. Another round of thunderstorms are forecast for this afternoon and evening, the agency said.
"Periods of heavy rainfall will be possible with the strongest storms, increasing the potential for localized flooding," the NWS said.
Storms also are expected in parts of Arkansas heading into the weekend.
Widespread severe weather isn't forecast for the state but some "briefly severe storms" are possible, the agency said. The primary threats with the storms are large hail and damaging winds, the NWS said.