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333123

3 Big Things Today, September 2, 2022

Corn, soybeans, and wheat rebound overnight; net farm income expected to increase

1. Corn, soybean, and wheat futures jump overnight

Corn, soybeans, and wheat rebounded overnight after corn and wheat touched one-week lows on Thursday. The crop markets are following movement in financial markets as investors keep an eye on U.S. jobs data and further interest rate hikes.

The market will also be watching corn and soybean harvest progress as it picks up around the country. Recent crop tours, USDA Crop Progress reports, and other yield checks have offered contrasting assessments of crop conditions in recent weeks. Al Kluis of Kluis Commodity Advisors says hot and dry weather is reducing yield potential for corn and soybeans across about 30% of the Corn Belt.

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2. Above average farm profit expected in 2022

USDA’s Economic Research Service released new data Thursday pegging anticipated 2022 net farm income at $147.7 billion, a 5.2% increase from 2021.

Much of the anticipated growth is driven by an increase in cash receipts, forecasted to surge 21.2% from 2021 to $525.3 billion in 2022.

While cash receipts overall are expected to increase in 2022, lower direct Government payments and higher production expenses are expected to moderate income growth, said the report. Direct Government payments are forecast to fall by $12.8 billion, or 49.7%, from 2021 to $13.0 billion in 2022. 

3. Flood advisory for northwest Oklahoma Friday

Minor flooding caused by excessive rainfall is expected in a portion of northeast Oklahoma on Friday morning. Doppler radar from the National Weather Service indicates thunderstorms have produced heavy rainfall. Precipitation totals between 2-4 inches are expected.

Thursday’s drought monitor report indicates much of the impacted area including Creek, Okmulgee, Tulsa, and Wagoner counties is currently suffering from D2 severe drought, or worse. Cattle in the area are stressed, drylands crops are severely reduced, and pasture growth is stunted.

Nationwide, 224.5 million acres of crops are experiencing drought, said the National Integrated Drought Information System (NIDIS) on Thursday. Over 26 million beef cattle are experiencing drought across 646 U.S. counties.

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