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3 Big Things Today, July 30, 2021

Soybeans, Grains Lower Overnight; Weekly Export Sales of Wheat Rise.

1. Soybean and Grain Futures Drop in Overnight Trading

Soybeans and grains were lower in overnight trading as a little rain is expected in parts of South Dakota and Nebraska today and tomorrow, alleviating some of the extremely hot weather the region has seen this week.

Precipitation is expected today in both states after heat indexes all week were well into the triple digits, weather maps show.

Rain also is forecast in parts of eastern Nebraska, southwestern Iowa, and parts of Missouri as well – mostly this weekend – before giving way to dry weather for much of next week, Commodity Weather Group said in a report.

Price declines are being limited by persistent hot and dry weather in much of the Midwest. Parts of Kansas, Missouri, Oklahoma, and Arkansas all will see heat indexes from 100°F. to 115°F. today and tomorrow, the National Weather Service said.

Showers are needed in some parts of the Corn Belt where rain has been absent in recent days. Little or no precipitation has fallen in much of North Dakota, Nebraska, and Iowa in the past week, NWS data show.

The U.S. Drought Monitor, which was updated yesterday, shows conditions in North Dakota, the bigger producer of spring wheat, worsened from the week prior.

The entire state is seeing some sort of drought, with 42% suffering from extreme drought conditions and just over 10% hit by exceptional drought, the worst-possible rating. Those figures are up from 40% and 8.2%, respectively, the monitor said.

Soybean futures for November delivery fell 9¢ to $13.68¾ a bushel overnight on the Chicago Board of Trade. Soymeal rose 30¢ to $359.70 a short ton, while soy oil dropped 0.97¢ to 63.74¢ a pound.

Corn futures for December delivery declined 4¼¢ to $5.52¼ a bushel.

Wheat futures for September delivery lost 6½¢ to $6.98¾ a bushel, while Kansas City futures dropped 4½¢ to $6.70 a bushel.

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2. Wheat Sales to Overseas Buyers Rise Week-to-Week

Export sales of wheat were higher week-to-week while corn and soybean sales to overseas buyers were dismal.

Wheat sales in the seven days that ended on July 22 totaled 515,200 metric tons, up 9% from the previous week and 46% from the prior four-week average, the USDA said in a report.

China was the big buyer at 128,900 metric tons, Mexico bought 85,600 tons, the Philippines took 59,100 tons, Taiwan purchased 52,100 tons, and Thailand was in for 47,000 tons from U.S. supplies.

Exports for the week came in at 345,000 metric tons, down 27% from the previous week, the agency said.

Corn sales were negative with a net reduction of 115,200 metric tons, the USDA said.

Japan bought 36,300 metric tons, Venezuela took 30,000 tons, Barbados purchased 6,300 tons, Canada was in for 5,200 tons, and Taiwan took 2,500 tons.

Those sales were more than offset by cancellations of 119,300 tons by China and 71,600 tons by unnamed countries, the government said.

It wasn’t all bad news, however, as sales for delivery in the 2021-2022 marketing year were reported at 529,300 metric tons. Exports for the week came in at 1.36 million metric tons, a 36% increase week-to-week.

Soybean sales last week also resulted in a net reduction of 79,300 metric tons, the agency said.

Taiwan bought 12,800 metric tons, Mexico took 6,100 tons, Vietnam was in for 5,800 tons, South Korea purchased 4,800 tons, and Bangladesh took 4,500 tons.

Japan canceled shipments totaling 74,800 tons and unknown destinations nixed 51,500 tons.

Sales for 2021-2022 were reported at 312,800 metric tons, and exports for the week came in at 244,200 tons, a 49% increase from the previous week, the USDA said in its report.

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3. Rain May Fall Friday in Parts of South Dakota and Nebraska

Showers are likely this afternoon in much of South Dakota and Nebraska after a heat wave rolled through the area all week, according to the National Weather Service.

“A couple of strong storms will be possible along and south of I-90 in south-central South Dakota,” the NWS said in a report early this morning. “Otherwise, no severe weather is expected.”

The heat wave that’s plagued the Corn Belt all week is still sitting over a large chunk of land from northeastern Kansas south to the Gulf of Mexico and east to the lower Atlantic seaboard.

In eastern Kansas and western Missouri, an excessive heat warning is still in effect as heat indexes are forecast to hit as high as 110°F., the agency said.

In eastern Arkansas, meanwhile, temperatures are expected to be in the 90s with heat indexes ranging from 100°F. to 115°F., the NWS said.

“Be sure to take the necessary precautions for extended exposure in the heat and know the sings of heat-related illnesses,” the agency said.

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