Content ID

272154

3 Big Things Today, May 30

Wheat Drops on Profit Taking Overnight; Weekly Grain Inspections Improve.

1. Wheat Falls on Profit Taking After Prices Hit 10-Month High

Wheat futures declined overnight as investors who were long the market, or had bullish bets, booked profits after prices yesterday reached the highest in 10 months.

Thunderstorms are forecast for parts of the Southern Plains today but the odds are only 30% chance the area will see rainfall, according to the National Weather Service. After today, there’s little chance of precipitation for at least the next two weeks, and temperatures are expected to be in the 90s or 100s.

Still, investors who’d been long the market saw the 10-month high reached yesterday as a prime spot at which to liquidate their contracts and book some profits, analysts said.

Wheat for July delivery fell 8¾¢ to $5.27¾ a bushel overnight on the Chicago Board of Trade. Kansas City futures lost 8¾¢ to $5.47¾ a bushel.

Corn and beans were lower as planting progress moved along quickly again last week. Growers were 92% finished with corn seeding as of Sunday, up from 81% a week earlier, according to the USDA.

Producers in South Dakota are now 91% finished with planting, up from 66% just a week ago. In North Dakota, farmers planted a quarter of the state’s crop in the seven days through Sunday and are now 87% finished with planting.

Soybeans were 77% planted, up from 56% a week ago and well ahead of the prior five-year average of 62%, according to the USDA.

Corn fell 3¢ to $3.97 a bushel.

Soybean futures for July delivery lost 6¼¢ to $10.24¼ a bushel overnight. Soy meal declined $1.20 to $379 a short ton, and soy oil gained 0.14¢ to 31.35¢ a pound.

**

2. Export Inspections For Grains Improve Weekly, Soybean Assessments Decline                        

Export inspections for corn and wheat were higher week to week, but soybean assessments fell sharply.

Inspections of corn for overseas delivery in the seven days through May 24 totaled 1.71 million metric tons, up from 1.55 million a week earlier, according to the USDA. Inspections during the same week last year were reported at 1.19 million tons.

Wheat inspections through last week came in at 431,239 tons, up from 349,542 tons a week earlier, the USDA said in a report that was delayed by the Memorial Day holiday. Assessments of the grain during the same week in 2017 totaled 605,517 metric tons.

Soybean inspections, meanwhile, were reported at 576,406 metric tons, well below the prior week’s total of 906,688 tons, the agency said. While it dropped week to week, it’s still above the 351,474 tons inspected during the same week last year.

Inspections for all three crops still lag the year-earlier pace.

Corn inspections since the start of the marketing year on September 1 were reported at 38 million metric tons, down from 43.1 million during the same time frame a year ago. Soybean inspections are at 46.2 million tons, down from 50.8 million last year.

Wheat inspections since the start of the grain’s marketing year on June 1, 2017, were at 23.5 million tons, behind last year’s 27 million tons, according to the USDA.

**

3. Thunderstorms May Lead to Isolated Flooding in Parts of Wisconsin

Thunderstorms are expected in southern Wisconsin this afternoon, producing heavy rainfall, the National Weather Service said.

“Brief, heavy rainfall of ½ inch to 1 inch could occur in one hour’s time with locally higher amounts,” the NWS said in a report early Wednesday morning. “This could produce localized urban and rural flooding. Conditions have remained fairly dry over the past week, so any flooding that does occur is expected to remain localized and brief.”

Farther south, flooding is still an issue as the remnants of Tropical Storm Alberto break up. The storm, which is still a subtropical depression, continues to weaken, but is still dropping heavy rain in states along the Gulf of Mexico, in the Ohio Valley, and the Appalachians.

Rainfall is expected to extend as far north as the Great Lakes and Mid-Atlantic as the week goes on, the agency said.

Read more about
Loading...

Talk in Marketing