3 Big Things Today, June 22, 2022
1. Wheat Jumps While Soybeans Drop Overnight
Wheat futures jumped overnight as some speculative investors jumped back into the market after prices yesterday hit the lowest in almost three months, while soybean futures crashed as extreme heat moves out of some areas of the U.S. Midwest.
Wheat futures yesterday fell to their lowest level since late March yesterday, driven lower as the winter-wheat harvest in the U.S. rolls on and crop collection continues in Europe.
Still, worsening crop conditions in the southern Plains and prospects for higher prices likely brought some buyers back into the market overnight.
About 25% of the U.S. winter crop was harvested as of Sunday, up from 10% a week earlier and ahead of the prior five-year average of 22%, the Department of Agriculture said in a report.
Thirty percent of the crop was in good or excellent condition at the start of the week, down from 31% a week earlier and well behind the 49% that saw top ratings at the same point last year, the USDA said.
Spring-wheat planting is almost complete, and 89% of the crop has emerged from the ground, up from 72% last week, but down from the average of 97% for this time of the year.
Fifty-nine percent of spring wheat was in good or excellent condition as of Sunday, up from 54% the previous week and well ahead of the 27% that saw top ratings during the same week in 2021, the agency said.
Also boosting wheat prices are prospects for rain in the southern Plains for the next two weeks that could delay the winter harvest. Precipitation likely will delay crop collection for the next couple of weeks but the risk of any damage is low, Commodity Weather Group said in a report.
Extreme heat that's been underpinning soybean and corn prices has moved out of most of the Corn Belt, giving relief to plants and animals that had been suffering from the hot weather.
Scattered showers are expected through Friday in the southwestern Midwest, and the Great Lakes area also may see some rain, CWG said.
Still, the six- to 15-day outlook for the central Corn Belt is cooler but moisture deficits may build, mostly in parts of Illinois, Indiana and southern Minnesota, the forecaster said.
Wheat for September delivery jumped 20 1/4¢ to $10.07 ½ a bushel overnight on the Chicago Board of Trade while Kansas City futures surged 14¢ to $10.62 ¼ a bushel.
Soybean futures for November delivery dropped 19¢ to $14.91 ½ a bushel. Soymeal lost $1.40 to $401.20 a short ton, while soybean oil futures fell 2.63¢ to 67.74¢ a pound.
Corn futures for December delivery were up 2¢ to $7.03 ½ a bushel.**
2. Grain, Bean Inspections For Export Fall Week-to-Week
Inspections of corn, beans and wheat for overseas delivery all declined in the seven days that ended on June 16, the USDA said in a report.
The government inspected 1.18 million metric tons of corn for export, down from the 1.22 million tons assessed a week earlier and well below the 1.78 million tons examined during the same week last year.
Soybean inspections were reported at 427,344 metric tons, the agency said.
That's down from 608,116 metric tons a week earlier but ahead of the 205,645 tons assessed during the same week in 2021, the UDSA said.
Examinations of wheat for offshore delivery last week totaled 331,328 metric tons, down from 411,916 tons the previous week and 554,712 tons a year earlier.
Since the start of the marketing year on Sept. 1, the USDA has inspected 46.2 million metric tons of corn, down from 56 million tons during the same timeframe a year earlier.
Soybean assessments since the beginning of September now stand at 50.9 million metric tons, down from 57.3 million tons during the same period last year, the agency said.
Wheat inspections since the start of the grain's marketing year on June 1 are now at 969,953 metric tons, down from the 1.25 million tons that were examined at this point a year earlier, the USDA said in its report.
3. Heat Advisories Issues For Parts of Eastern Oklahoma
The extreme heat that had been hovering over the U.S. Midwest for the past several days has moved on but some growing areas sill will see hot weather.
Heat advisories will be in effect from noon to 8 p.m. today in much of eastern Oklahoma, according to the National Weather Service.
Indexes are expected to reach as high as 106 degrees Fahrenheit in the area, creating ripe conditions for heat illnesses, the NWS said in a report early this morning.
Further north in southern Illinois and southeastern Missouri, isolated thunderstorms are possible today.
In eastern Kansas and far western Missouri, meanwhile, showers and thunderstorms are possible in the area throughout today and into Thursday, the NWS said.