3 Big Things Today, June 16, 2022
1. Corn Futures Rise in Overnight Trading
Corn futures were higher in overnight trading amid adverse growing weather in parts of the U.S.
Soybeans were little changed and wheat was lower.
Extremely hot weather is expected for the next few days in central Nebraska, and heat warnings and advisories remain in place in parts of Illinois and Indiana.
Little to no rain has fallen in parts of Kansas, Missouri and southern Illinois in the past week, according to the National Weather Service's precipitation page.
In Iowa, the southern half of the state has seen little precipitation in the past seven days, NWS data show.
The U.S. Drought Monitor shows that most Corn Belt states were faring fairly well last week, though 88% of Nebraska was seeing drought conditions.
Just over 4% of the state was suffering from extreme drought, the second-worst rating on the monitor's scale.
Crop stress from dry weather is centered on the central and southwestern Midwest, which will have affect about 25% of corn and soybeans in the next 10 days, Commodity Weather Group said in a note to clients.
It's not all bad news, though, as rain in the 11- to 15-day outlook likely will keep stress limited, the forecaster said.
About 88% of the U.S. corn crop had emerged as of Sunday, in line with the prior five-year average, the Department of Agriculture said in a report earlier this week. That's up from 78% a week earlier.
Some 72% of the crop was in good or excellent condition at the start of the week, down a percentage point from the previous week, the USDA said.
Seventy percent of soybeans have emerged from the ground versus the average of 74% for this time of year, but up from only 56% a week earlier.
In the southern Plains, dry weather is expected to prevail for the next few days, which will aid the winter-wheat harvest, CWG said.
Ten percent of the U.S. winter-wheat crop was harvested as of Sunday, up from 5% a week earlier but just behind the prior five-year average of 12%, the USDA said.
About 31% of the crop was in good or excellent condition, up from 30% a week earlier. Still, at this point last year, 48% of U.S. winter wheat had earned top ratings, according to the government.
Corn futures for July delivery rose 2 3/4¢ to $7.76 ¾ a bushel overnight on the Chicago Board of Trade.
July soybeans gained 1 1/2¢ to $16.95 ¼ a bushel.
Wheat futures for September delivery fell 3 1/4¢ to $10.60 ¼ a bushel, while Kansas City futures lost 5 1/4¢ to $11.35 a bushel.**
2. Ethanol Production Rises Week-to-Week While Stockpiles Fall
Ethanol production rebounded last week while inventories declined, according to the Energy Information Administration.
Output in the seven days that ended on June 10 rose to an average of 1.06 million barrels a day, the EIA said in a report.
That's up from 1.039 million barrels a day, on average, the previous week.
In the Midwest, by far the biggest producing region, production rose to an average of 999,000 barrels a day from 985,000 barrels a day the previous week, the agency said.
Gulf Coast production surged to 26,000 barrels a day from 19,000 barrels a week earlier.
That was the entirety of the gains as East Coast output was unchanged at 12,000 barrels per day and West Coast production remained at 9,000 barrels a day for the third straight week.
Rocky Mountain production was the lone decliner for the week, falling to an average of 14,000 barrels per day from 15,000 barrels the previous week. That marks the lowest level since May 13, the government said.
Ethanol stockpiles, meanwhile, dropped to 23.197 million barrels in the seven days that ended on June 10.
That's down from 23.636 million barrels a week earlier, the EIA said in its report.
3. Extremely Hot Weather Continues in U.S. Corn Belt
Hot weather continues in the Midwest today as an excessive heat watch has been issued for central Nebraska and more heat warnings are in place in southern Illinois and parts of Missouri, Indiana and Kentucky, according to National Weather Service maps.
In central Nebraska, heat index values are expected to hit 105 degrees Fahrenheit each day through Monday, the NWS said in a report early this morning.
"Each afternoon will be followed by warm and muggy nights, especially Saturday and Sunday nights when low temperatures will only dip into the mid to upper 70s," the agency said.
In southern Illinois, the heat index will top out at about 110 degrees this afternoon.
Those working outside are advised to take extreme caution, drink plenty of fluids and limit time outdoors, the NWS said.