3 Big Things Today, June 6
1. Wheat Futures Higher on Worries About Russian Crop
Wheat futures were higher overnight on concerns about the crop in Russia, where excessive rainfall and cool weather may hurt production in some areas.
“Wheat futures are getting support from the concern about the shrinking of the Russian crop,” Allendale’s Paul Georgy said in a note to clients this morning. “World Weather Inc. suggests western Russia will see periods of light rain and cool temperatures during the coming week that will limit drying and may increase topsoil moisture in a few areas.”
Much of Ukraine, Belarus, and southwestern Russia probably will see less rain, which won’t adjust soil moisture levels, he said.
In the U.S. Southern Plains, meanwhile, temperatures are expected to be in the triple digits today and Friday and in the upper 90s for the rest of at least the next week, according to the National Weather Service. There’s little chance of rain in the next seven days, further drying out an already damaged crop.
Wheat for July delivery rose 6¾¢ to $5.16¾ a bushel overnight on the Chicago Board of Trade, while Kansas City futures added 7½¢ to $5.36½ a bushel.
Corn futures rose 1½¢ to $3.85¼ a bushel overnight.
Soybean futures for July delivery rose 3½¢ to $10.04¾ a bushel in Chicago. Soy meal added 50¢ to $367.80 a short ton, and soy oil fell 0.01¢ to 30.78¢ a pound.
2. Trump Reportedly Rejects Ethanol-Oil Deal, According to Lawmakers’ Tweets
President Trump reportedly rejected a deal between ethanol producers and oil refiners, according to tweets from two prominent farm-state legislators.
“Pres Trump helped farmers by rejecting bad ethanol deal. I appreciate. GREAT NEWS,” Iowa Senator Charles Grassley said in a tweet yesterday evening.
Representative Joni Ernst, also from Iowa, said “(President Trump) has said he ‘looovves the farmers!’ Iowa is feeling that love today, as the President just assured me he ‘won’t sign a deal that’s bad for farmers!’ Thank you, Mr. President!”
The deal that reportedly was set to be signed on Monday was similar to what had previously been reported – allowing sales of E85 year-round while allowing refiners to count exports toward their blending requirements under the Renewable Fuels Standard.
Critics of the deal, including Grassley, had said that allowing refiners to count exports toward their RFS requirements would undermine ethanol demand and hurt U.S. corn farmers. He went so far as saying he would demand EPA Administrator Scott Pruitt’s resignation if such a deal were passed.
The White House, thus far, hasn’t commented on whether the president rejected the proposal.
3. Storm Moving Out of Rockies Into Central Plains May Bring Severe Weather
A storm system will bring storms from the Northern Rockies into the Central Plains and Upper Mississippi River Valley today, according to the National Weather Service.
“The most likely area for severe wind and hail will be from Iowa into eastern Nebraska during the afternoon,” the NWS said in a report early Wednesday morning. “Severe thunderstorms are also expected on Thursday, mainly across the north-central High Plains.”
Dime-size hail and wind gusts up to 50 mph are possible with the storms, which are moving east at about 35 mph, the agency said.
In southwestern Kansas, where hard red winter wheat plants continue to grow, there’s a “slight chance” for late-afternoon thunderstorms today. The main threat is large hail, but a tornado is also a possibility, according to the NWS.
Still, the odds are “limited” that precipitation or severe weather will occur, the agency said in this morning’s report.