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3 Big Things Today, June 5

Wheat Futures Higher Overnight; Export Inspections of Grains, Beans Down Last Week

1. Wheat Futures Rebound Overnight on Bargain Buying

Wheat futures rebounded overnight as bargain hunters jumped into the market after prices plunged yesterday.

Speculators who were net short on wheat futures likely bought back their contracts and closed some of their positions after prices fell more than 3% on Monday. Technical selling was the culprit for the session’s across-the-board declines.

Soybeans lost almost 20¢, and corn dropped more than a dime.

Fundamentally, not much has changed in the past week. While the southern Plains has received some rainfall, the region is still suffering from extreme or exceptional drought, the worst-possible ratings, according to the U.S. Drought Monitor.

Corn planting was 97% complete as of Sunday, and 86% of the crop has emerged from the ground already, according to the U.S. Department of Agriculture. Some 78% was in good or excellent condition, but that’s down 1 percentage point from the prior week, the USDA said.

Soybean seeding was 87% finished, topping the prior five-year average of 75%, and 68% of the crop has emerged. About 75% of U.S. soybeans were in good or excellent condition, according to the government.

Wheat for July delivery rose 7¼ cents to $5.12½ a bushel overnight on the Chicago Board of Trade while Kansas City futures added 6¼ cents to $5.27¾ a bushel.

Corn futures rose 2¢ to $3.82¾ a bushel overnight.

Soybean futures for July delivery rose a penny to $10.02¾ a bushel in Chicago. Soymeal added $1 to $369.90 a short ton, and soy oil fell 0.05¢ to 30.88¢ a pound.

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2. Inspections of Corn, Soybeans, Wheat For Overseas Delivery Down Week-to-Week              

Inspections of corn, soybeans, and wheat for overseas delivery declined week-to-week, according to the U.S. Department of Agriculture.

Corn inspections dropped to 1.55 million metric tons in the seven days through May 31, the USDA said in a report. That’s down from 1.71 million a week earlier, but up from 1.18 million during the same week a year ago.

Soybeans inspected dropped to 557,733 metric tons from 579,245 tons a week earlier, according to the government. A year earlier, assessments totaled 288,095 tons.

Wheat assessments, meanwhile, dropped to 341,470 metric tons last week, down from 445,709 tons a week earlier and 531,733 tons during the same time frame the prior year, the USDA said.

The marketing year for wheat officially ended on May 31. Inspections in the 2017-2018 marketing year totaled 23.9 million metric tons, down from the prior year’s 27.5 million tons, according to the government.

Corn inspections since the start of its marketing year on September 1 are now at 39.6 million tons, behind the 44.3 million recorded during the same period last year.

Soybean assessments are at 46.8 million tons, down from 51.1 million tons inspected at this point a year earlier, according to the USDA.

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3. Scattered Thunderstorms Possible Today in Parts of South Dakota, Minnesota

Scattered thunderstorms are possible tonight and early tomorrow morning in parts of South Dakota, northwestern Iowa, and southwestern Minnesota, according to the National Weather Service.

The storms will be capable of producing quarter-size hail and wind gusts of up to 60 mph, the NWS said in a report early Tuesday morning. The storms may continue through Wednesday night but will creep east throughout the day.

Farther east, there’s a chance for storms in parts of southern Michigan, northern Indiana, and northwest Ohio. The weather isn’t expected to be severe, however.

Thunderstorms likely will continue Thursday through Sunday, the NWS said.

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