3 Big Things Today, June 18, 2021
1. Soybeans and Grains Jump in Overnight Trading
Soybeans and grains rebounded from yesterday’s losses amid worsening drought conditions in parts of the U.S. Midwest.
About 46% of the U.S. was suffering from some sort of drought in the week through June 15, up from 45% a week earlier, the U.S. Drought Monitor said in a report yesterday.
“Generally warm and dry conditions prevailed in the northern half of the (Midwest) over the past week, leading to widespread worsening of drought and dryness,” the monitor said.
Warm and dry weather worsened moisture deficits in parts of Illinois and southern Wisconsin, where crops are under stress from ongoing severe and extreme drought, the group said in its report.
All of North Dakota, the biggest producer of spring wheat, is facing drought conditions, up 1 percentage point from the previous week. About 18% of the state is seeing exceptional drought, the worst possible rating, the Drought Monitor said.
Some 62% of the U.S. soybean crop was in good or excellent condition at the start of this week, down from 67% a week earlier, according to the Department of Agriculture. Around 86% of the crop had emerged, ahead of the prior five-year average of 74%.
The U.S. corn crop was rated 68% good or excellent, down from 72% a week earlier, the USDA said in a report earlier this week. About 96% of the crop had emerged as of the start of the week, ahead of the five-year average of 91% for this time of year, the government said.
Some intermittent rain is expected in north-central parts of the Midwest today, which may improve soil moisture “slightly,” said Donald Keeney, an agricultural meteorologist with Maxar.
In the Southern Plains where winter-wheat harvest is underway, dry weather through the weekend will aid in crop collection, he said. Rainfall in eastern Nebraska is forecast for next week, which will help soil moisture, Keeney said.
Soybean futures for July delivery jumped 52¼¢ to $13.05 a bushel overnight on the Chicago Board of Trade. Soymeal rose $3.20 to $372.60 a short ton, while soy oil surged 3.31¢ to 55.64¢ a pound.
Corn futures for July delivery added 17¾¢ to $5.50¼ a bushel.
Wheat futures for July delivery gained 18½¢ to $6.61½ a bushel, while Kansas City futures rose 18¾¢ to $6.13 a bushel overnight.
2. Corn Export Sales Drop in Week Through June 10
Export sales of corn plunged week-to-week while soybean sales surged, according to the USDA.
Corn sales in the seven days that ended on June 10 totaled 18,000 metric tons, down 91% from the previous week and 95% from the prior four-week average, the agency said in a report.
Japan was the big buyer at 69,900 metric tons, followed by Saudi Arabia at 57,500 tons and Colombia at 44,000 tons. Mexico bought 37,500 metric tons and Nicaragua was in for 31,400 tons.
The total would’ve been higher but unnamed countries canceled cargoes of 152,500 metric tons, and Costa Rica nixed shipments totaling 96,700 tons, the USDA said.
Sales for the 2021-2022 marketing year that starts on Sept. 1 were reported at 276,100 metric tons. Exports for the week rose 1% to 1.66 million metric tons.
Soybean sales, on the other hand, jumped to 65,300 metric tons last week, a 51% increase from the prior four-week average, the agency said.
Japan bought 15,500 metric tons, Colombia was in for 15,000 tons, Indonesia purchased 12,300 tons, and Canada took 9,400 tons. Unknown destinations canceled shipments totaling 10,000 tons, government data show.
Sales for 2021-2022 were negligible at 6,500 metric tons. Exports for the week were reported at 158,300 metric tons, a marketing-year low and down 47% from the previous week, the USDA said.
Wheat sales for the first full week off the 2021-2022 marketing year that started on June 1 came in at 287,100 metric tons.
Japan purchased 95,100 metric tons, an unnamed country took 72,000 tons, Mexico was in for 49,600 tons, Thailand bought 34,000 tons, and the Dominican Republic took 14,600 tons.
Exports for the week through June 10 totaled 298,600 metric tons, the USDA said in its report.
3. Heat Advisories Issued in Kansas, Missouri, and Illinois as Heat Wave Moves East
It’s still hot in parts of the Midwest as heat advisories have been issued for parts of northeastern Kansas, almost all of Missouri, and the southern half of Illinois, according to the National Weather Service.
In parts of central Missouri and southern Illinois, heat indexes this afternoon are expected to hit as high as 110°F., the NWS said in a report early this morning.
The heat advisory for the area runs from 1 p.m. to 7 p.m. local time.
In northern Kansas, heat indexes will top 105°F. this afternoon, the agency said.
Farther north in parts of Minnesota and western Wisconsin, a red-flag warning has been issued due to extremely dry conditions.
Winds in central Minnesota are forecast from 15 to 20 mph with gusts of up to 30 mph, the NWS said.
Relative humidity is expected to be around 20%.
“Any fires that develop will likely spread rapidly,” the agency said. “Outdoor burning is not recommended.”