3 Big Things Today, June 3, 2022
1. Soybean Futures Drop in Overnight Trading
Soybean futures were lower in overnight trading as dry weather today in the northern Plains will allow farmers to finish planting and wet weather in the central Corn Belt will provide moisture for newly planted crops.
Little or no rain is expected this weekend in much of the Dakotas and Minnesota, which will help speed planting that's been delayed due to wet weather in the region.
Delayed seeding recovers in North Dakota, Minnesota, Manitoba and eastern Saskatchewan through the next 11 to 15 days, Commodity Weather Group said in a report.
In south-central Nebraska and northern Kansas, thunderstorms are expected to roll through the area today, according to the National Weather Service. Precipitation is expected to persist through Thursday.
In central Iowa, storms are forecast for tonight, though no threatening weather is expected, the NWS said.
Rainfall is expected to increase further in the southern Midwest and Delta regions in the next six to 10 days, according to a report from CWG.
"Moisture aids corn (and) soy growth," though there'll be some risks of patchy stress, but that will be limited to eastern Iowa and the Great Lakes, the forecaster said.
About 66% of the U.S. soybean crop was planted at the start of this week, up from 50% a week earlier but just behind the prior five-year average of 67%, the Department of Agriculture said.
In Iowa, 85% of the crop was in the ground as of Sunday, ahead of the normal 77% for this time of year. In Illinois, three-fourths of the crop was planted, ahead of the average of 67%, the USDA said.
Some 86% of the U.S. corn crop was sown, up from 72% the previous week and just below the average of 87%, the government said.
Thirty-nine percent of soybeans and 61% of corn had emerged as of the start of the week.
Soybeans for July delivery fell 8 3/4¢ to $17.20 ½ a bushel overnight on the Chicago Board of Trade.
Corn futures rose 2 1/4¢ to $7.32 ½ a bushel.
Wheat futures for July delivery fell 2 1/2¢ to $10.55 ¾ a bushel, while Kansas City futures gained 2¢ to $11.45 ½ a bushel.**
2. Ethanol Output Jumps to Five-Month High While Inventories Plunge
Ethanol production last week jumped to the highest level in more than five months while inventories plunged, according to data from the Energy Information Administration.
Output averaged 1.071 million barrels a day in the week that ended on May 27, the EIA said in a report that was delayed a day due to Memorial Day.
That's up from 1.014 million barrels per day, on average, a week earlier and the highest since the seven days that ended on Dec. 10.
In the Midwest, by far the biggest producing region, production surged to 1.011 million barrels, on average, from 960,000 barrels a week earlier, the agency said. That's also the highest in more than five months.
Production in the Gulf Coast rose to an average of 23,000 barrels per day, up from 20,000 barrels a week earlier.
West Coast output averaged 9,000 barrels a day, up from 7,000 the previous week, the EIA said.
East Coast production was unchanged at 12,000 barrels a day, and Rocky Mountain output remained at 15,000 barrels per day, the government said.
Inventories, meanwhile, dropped to 22.961 million barrels in the week through May 27.
That's down from 23.712 million barrels the previous week and the lowest level for stocks since the seven days that ended on Jan. 7, the EIA said in its report.
3. Storms Expected in Parts of North Texas, Western Oklahoma
Scattered thunderstorms are forecast for parts of north Texas and western Oklahoma today and tonight, bringing showers, strong winds and hail to the area, according to the National Weather Service.
Storms will continue this morning with small hail and gusty winds.
"Another round of showers and thunderstorms will be possible later this evening into early Saturday," the NWS said in a report early this morning. "A few strong to marginally severe storms could be possible in parts of western north Texas."
Winds may reach up to 60 miles an hour and hail the size of quarters is in the forecast.
Further norther in northern Illinois and Indiana, extremely dry weather is expected today and tonight.
Breezy conditions will lead to an increased risk of wildfires especially in some areas where little or no rain has fallen recently, the NWS said. In southern Michigan, fire weather also will be a concern heading into the weekend.
"Be careful with any activities that could potentially lead to a wildfire," the agency said.
In Florida, meanwhile, a tropical storm warning is in effect as winds will be sustained from 35 to 45 miles an hour with gusts of up to 55 miles per hour, the NWS said.
A storm surge also is possible with the tropical storm, which is comprised of the remnants of Hurricane Agatha that hit Mexico early this week and a tropical depression that had been sitting over the Yucatan Peninsula for days.