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3 Big Things Today, June 17, 2022

Corn, Beans Rise Overnight; Wheat Sales Reported First Full Week of New Year

1. Corn and Soybean Futures Rise Overnight

Corn and soybean futures were higher in overnight trading after a bill passed the U.S. House of Representatives that would open the door for year-round sales of E15 fuel blends.

The House yesterday passed the so-called Lower Food and Fuel Costs Act that contains a provision to allow sale of E15 year round.

The Renewable Fuels Association applauded the legislation, saying it will bring down gas prices at the pump and remove barriers to selling blends and support the expansion of low-carbon fuels.  

"By expanding the availability of cleaner, more-affordable ethanol blends, this legislation will help deliver immediate economic relief to American families who are feeling unprecedented pain at the pump," said RFA Chief Executive Geoff Cooper.

E15 is about 10 to 40 cents less expensive than E10 gasoline, he said.

Also boosting prices this morning is extremely hot weather in a large chunk of the U.S. Corn Belt.

Heat advisories and watches have been issued in several states including parts of Nebraska, Iowa, Kansas, Missouri and southern Illinois, according to weather maps from the National Weather Service.

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.

Corn futures for July delivery rose 5 1/4¢ to $7.93 ½ a bushel overnight on the Chicago Board of Trade.

July soybeans gained 7 1/4¢ to $17.09 ½ a bushel.

Wheat futures for September delivery fell 5 1/4¢ to $10.85 ¼ a bushel, while Kansas City futures lost 6 3/4¢ to $11.49 a bushel.

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2. Wheat Export Sales Reach 236,900 Metric Tons in First Full Week of 2022-2023

Export sales of U.S. wheat in the first full week of the 2022-2023 marketing year totaled 236,900 metric tons, according to data from the Ag Department.

Brazil was the big buyer at 78,000 metric tons, followed by Mexico at 58,800 tons and Ecuador at 49,600 tons, the USDA said in a report. Chile bought 48,000 metric tons and Nigeria purchased 34,600 tons.

The total would've been higher but an unnamed country canceled cargoes of 56,300 tons, Switzerland nixed shipments of 50,000 tons and Guatemala scratched an order for 16,900 tons, the agency said.

Exports for the week that ended on June 9 were reported at 370,100 metric tons.

Corn sales last week dropped to a marketing-year low of 140.900 metric tons, the USDA said. That's down 50% from the previous week and 45% from the prior four-week average.

Mexico bought 124,500 metric tons, Japan took 117,200 tons, South Korea was in for 72,400 tons, the Lee Ward Windward Islands purchased 10,100 tons and China purchased 4,900 tons. An unknown destination canceled cargoes of 189,400 tons of U.S. corn.

Sales for the 2022-2023 marketing year came in at 138,900 tons, and exports for the week were little changed week-to-week at 1.39 million metric tons, the government said.

Soybean sales totaled 317,200 metric tons, down 26% from the previous week and 16% from the average.

China purchased 135,400 metric tons, Japan was in for 83,000 tons, the Netherlands took 68,500 tons, Mexico bought 58,900 tons and Bangladesh purchased 57,700 tons of U.S. beans.

An unnamed country nixed cargoes of 191,500 metric tons, the agency said.

Sales for the 2022-2023 marketing year were reported at 407,600 metric tons, and exports for the week jumped 49% to 708,700 metric tons, the USDA said in its report.

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3. Heat Wave Continues Through the Weekend For Parts of U.S. Midwest

The heat wave continues in the U.S. Midwest as heat advisories and excessive heat watches have been issued from southern South Dakota all the way through the Delta into Florida, according to the National Weather Service.

In about two-thirds of Nebraska and parts of South Dakota, Iowa and Kansas, an excessive heat watch will take effect starting tomorrow and lasting through Monday, the NWS said in a report early this morning.

Heat indexes on Saturday will  reach as high as 106 degrees Fahrenheit in the eastern half of Nebraska and values will top 110 degrees Sunday and Monday, the agency said.

Overnight temperatures will only drop into the upper 70s and nights will be warm and humid.

In southern Missouri and northern Arkansas, heat indexes today will hit as high as 109 degrees Fahrenheit. A heat advisory will be in effect in the area until 8 p.m. tonight.

In southern Illinois and Indiana, meanwhile, storms are moving east through the area this morning. Hail and wind gusts of up to 60 miles an hour were an issue in some areas overnight, though the storm is moving off at about 30 miles per hour, the NWS said.

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