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3 Big Things Today, June 7, 2022

Corn and soybean futures decline; chances of severe weather continue.

1. Corn and soybean futures fall in overnight trading

Strong crop progress to date during #Plant22 is putting pressure on the grain markets and causing corn and soybean futures to decline.

"In the U.S. Globex grain markets, corn futures are 6 cents lower; soybean futures are down 2 cents, and wheat futures are trading 3 to 9 cents lower," says Al Kluis, Kluis Commodity Advisors.

The July corn trading range is 5 cents with the last trade of corn down 6 cents at $7.36. 

In the USDA Crop Progress Report, data shows corn planted at 94%, compared with 92% for the previous five-year average; 78% has emerged compared with 81% for the previous five-year average.

The condition of the corn crop was rated 73% good/excellent and 4% poor/very poor, which is on par with last year's crop condition.

The trading range for July soybeans is 12 cents with the last trade showing soybeans down 2 cents at $16.97.

The USDA Report has pegged soybeans at 78% planted, compared with 79% for the previous five-year average; 56% has emerged compared with 59% for the previous five-year average.

Wheat futures are mixed with Chicago wheat up 9 cents, KC wheat futures are down 9 cents, and Minneapolis wheat is down 3 cents.

Planting of spring wheat is reported at 82% compared with 97% for the prior five-year average; 55% has emerged compared with 83% for the previous five-year average. Winter wheat headed came in at 79% vs. the 84% five-year average.

2. Corn and wheat inspections increase

Inspections of U.S. corn and wheat increased while soybeans decreased, according to USDA data.

Corn is pegged at 1.43 million metric tons in the seven days that ended on June 2, compared with 1.41 million in the previous seven days.

Wheat inspections are reported at 352,779 tons, compared with 344,907 from the previous week.

Wheat has also sharply increased this marketing year compared with last. The data shows 225,845 since the start of the marketing year on Sept. 1, compared with 194,485 in the previous market year.

Soybean inspections, however, in the seven days that ended on June 2 totaled 350,416. That is down from 403,617 in the previous week.

Soybean and corn assessments are both down in the current market year compared with the last. Soybeans stand at 49.8 million tons vs. 56.9 from the previous year. Corn stands at 43.7 million tons vs. 52.6 million.

3. Chances of severe weather continue across the Central Plains

A risk of severe thunderstorms is in place over parts of the Central Plains through Wednesday morning. This is caused by a low pressure system that is deepening and moving eastward to the Mid-Atlantic.

The hazards associated with these thunderstorms are frequent lightning, severe thunderstorm wind gusts, hail, and a few tornadoes. There will also be an increased risk of hail over the Central High Plains, two inches or greater.

There is also risk of excessive rainfall with these thunderstorms over parts of the Central/Southern Plains through Wednesday morning. The associated heavy rain will create mainly localized areas of flash flooding, with urban areas, roads, and small streams the most vulnerable.

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