3 Big Things Today, May 4, 2021
1. Corn and Soybean Futures Jump in Overnight Trading
Corn and beans surged in overnight trading and wheat rose on adverse weather globally.
Brazil’s safrinha corn crop likely will continue to suffer losses amid extremely dry weather, according to weather report.
Rains will be limited to far southern areas in the South American country in the next two weeks, with more than half the crop under stress and yield losses mounting, Commodity Weather Group said in a report.
Donald Keeney, an agricultural meteorologist with Maxar, said in a note to clients that persistent dry weather in Brazil will “maintain significant dryness and stress” on the safrinha corn crop.
In Argentina, however, excessive rainfall likely will slow the corn and soybean harvest, though fieldwork likely will accelerate later this week, Keeney said.
In the U.S., meanwhile, some parts of the northern Plains where corn, beans and spring wheat are grown, are seeing significant dryness.
Little or no rain has fallen in much of North Dakota, Minnesota and South Dakota in the past two weeks, according to the National Weather Service.
Almost 98% of North Dakota, the biggest grower of spring wheat in the U.S., is suffering from some sort of drought, according to the U.S. Drought Monitor.
About 83% of the state is under an extreme drought, in which crops won’t grow, pastures go dormant and the threat of large wildfires exists, the monitor said.
A U.S. Department of Agriculture report on Monday showed 49% of the spring wheat crop has been planted, well ahead of the prior five-year average of 32%.
Fourteen percent of the crop had emerged at the start of the week, the USDA said.
The corn crop in the U.S. was 46% planted as of Sunday, up from the average of 36% for this time of the year. Eight percent of the crop had emerged, behind the normal 9%.
Some 24% of soybeans were in the ground at the start of the week, ahead of the prior five-year average of 11%, the USDA said.
In the southern Plains and eastern Midwest, 27% of the winter-wheat crop was headed as of Sunday, behind the average of 34%. About 48% of the crop was rated good or excellent, down another percentage point from the previous week, the agency said.
Corn futures for July delivery jumped 15¢ to $6.94 ½ a bushel overnight on the Chicago Board of Trade.
Soybean futures for July delivery surged 14 3/4¢ to $15.38 ¾ a bushel. Soymeal added $2.70 to $417.80 a short ton, and soy oil gained 1.04¢ to 64.1¢ a pound.
Wheat futures for July delivery rose 5 1/4¢ to $7.23 ¼ a bushel, while Kansas City futures added 6 3/4¢ to $6.94 ¼ a bushel.
2. Weekly Export Inspections of Beans and Wheat Fall, USDA Says
Inspections of soybeans and wheat for overseas delivery declined week-to-week while corn assessments improved, according to the USDA.
Soybean inspections in the seven days that ended on April 29 declined to 143,418 metric tons, the agency said in a report.
That’s down from 284,074 metric tons the previous week and well below the 381,177 tons assessed during the same week a year earlier.
Wheat assessments fell to 509,932 metric tons last week, down from 581,087 tons, the government said.
The total also was down from the 588,193 tons examined during the same week in 2020.
Corn inspections, meanwhile, rose to 2.14 million metric tons from 1.95 million tons, the USDA said.
That was also up from the 1.35 million tons assessed a year earlier.
Since the start of the marketing year on Sept. 1, the government has inspected 43.4 million metric tons of corn for offshore delivery, up from 23.8 million tons during the same timeframe the previous year.
Soybean assessments since the beginning of September are now at 55.5 million metric tons, up from only 33.8 million tons at this point last year, the agency said.
Wheat inspections since the start of the grain’s marketing year on June 1 now stand at 23.1 million metric tons, little change from the same period last year, the USDA said in its report.
3. Frost Advisory in Effect in South Dakota While Patchy Areas Expected in Iowa
A frost advisory is in effect for several counties in southeastern South Dakota this morning as temperatures drop into the lower 30s, according to the National Weather Service.
The advisory will expire at 8 a.m. local time, the NWS said in a report.
“Temperatures falling into the middle 30s, combined with clearing skies and light winds, may lead to patchy frost development early Tuesday morning,” the agency said.
Along the Iowa-Illinois border, meanwhile, frost also is possible early this morning and light rain likely will fall through midday today before heading east.
In central and eastern Oklahoma, thunderstorms are in the forecast today and tonight and may last into Wednesday in some counties, the NWS said.
Showers will linger into this evening, and there will be several additional chances for precipitation into the weekend. The agency is monitoring the odds of potentially stronger storms on Saturday.