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3 Big Things Today, October 24
1. Soybeans, Corn Lower Overnight as Harvest Rolls On
Soybeans and corn were lower in overnight trading, as the U.S. harvest continues on mostly dry weather in the Midwest.
Below-average precipitation is expected for much of the eastern and central Midwest from central Oklahoma and Kansas northeast into the Great Lakes region in the next five days, according to Commodity Weather Group.
Some light showers are expected, but that won’t keep most farmers out of their fields, the forecaster said. Some rainfall is predicted in the middle of next week.
About 53% of soybeans were harvested as of Sunday, up from 38% seven days earlier, the USDA said. About 49% of the corn crop was harvested, up from 39% a week earlier according to the government.
Drier weather the past week and a half has allowed producers to accelerate collection of their crops.
Soybeans for November delivery fell 3¼¢ to $8.54¼ a bushel overnight on the Chicago Board of Trade. Soy meal futures lost $1.60 to $309.10 a short ton, and soy oil rose 0.02¢ to 28.78¢ a pound.
Corn futures lost 1¼¢ to $3.69 a bushel overnight.
Wheat futures fell as drier weather will help Canadian producers harvest their crops. Dry weather in western Canada is aiding farmers who are trying to get their wheat and canola harvested, CWG said.
Wheat for December delivery dropped 5¼¢ to $5.03¾ a bushel in Chicago, while Kansas City futures lost 4¾¢ to $5.02¾ a bushel.
2. Southern U.S. May Be Wetter Than Normal, Winter Precipitation to Help Wheat, CWG Says
The southern U.S. may be wetter than normal, and winter precipitation will be good for overwintering wheat, Commodity Weather Group said in its seasonal outlook this week.
The forecaster said the main forecast driver for North America is a weak to moderate El Niño weather system due to a warm pool in the north Pacific. A weak El Niño often means temperatures are closer to normal.
In South America, meanwhile, central Brazil and eastern Argentina will be drier, while southern and western Argentina and northeastern Brazil may be wetter, based on “supported themes” in forecast guidance, CWG said.
Some dry weather will linger for the eastern third of Argentina in the next three months, which could hinder early corn and soybean growth, the forecaster said.
The weather in Brazil could get wetter in the center-west of Brazil in December and in northeastern parts of the country in January, while the south may be wetter into February. Argentina is looking drier, especially in southwestern parts, during December but otherwise wetter in January and February, CWG’s report said.
3. Pacific Hurricane Brings More Rain to Texas, Mississippi River Flooding Continues
Hurricane Willa is making its way out of the Pacific and across Mexico and likely will bring rainfall to parts of Texas that are already soaked before making its way east.
The storm is now a tropical depression as it nears the U.S.-Mexico border. Willa was a Category 5 hurricane, but weakened to a Category 3 before making landfall.
Central Texas has been mostly dry the past couple of days after almost two weeks of precipitation, but that likely will come to an end as the storm moves through Wednesday, according to the National Weather Service. The quick-moving storm will be moving east out of Texas into Gulf states on Thursday.
Flooding in the Midwest is still a problem, as flood watches and warnings have shifted south on the Mississippi River along the Missouri-Illinois border, NWS maps show.
The river at Cape Girardeau, Missouri, was at 34.1 feet, topping the flood stage of 32 feet, the agency said.