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333294

3 Big Things Today, September 7, 2022

Wheat Futures Higher Overnight; Weekly Grain Export Inspections Decline

1. Wheat Futures Jump in Overnight Trading

Wheat futures surged in overnight trading after Russian President Vladimir Putin threatened to end an agreement allowing ships carrying Ukrainian agricultural products out of the country, accusing Kiev of selling its grain to Europe rather than to poor countries.

Putin said he may speak with leaders from Turkey, which helped broker the deal in late July, about halting the agreement that ebded a blockade of ships and allowed grain exports out of Ukraine, which as been under attack by Russian forces since February.

The deal was brokered by officials from Turkey and the United Nations in a bid to help ease global food crises. On Sunday, 13 vessels carrying 282,500 metric tons of agricultural products left Ukraine, according to government data.

Since the deal was finalized, almost 90 ships have left Ukraine carrying almost 2 million metric tons of grain to 19 countries, Kiev said.

Ukraine President Volodymyr Zelenskyy said in response that agricultural goods will reach Somalia, which buys most of its grain from Ukraine and Russia, in coming weeks.

Prices also may be rising amid unfavorable weather in Argentina.

Dry weather prevailed in much of the country's wheat-growing areas last weekend, as expected, and the country's growing areas likely will remain mostly dry through the coming weekend, said Don Keeney, an agricultural meteorologist with Maxar, in a note to clients.

"Continued limited rains through next week will maintain moisture shortages and stress on wheat," he said.

Wheat jumped 32 3/4¢ to $8.49 ¾ a bushel overnight on the Chicago Board of Trade, while Kansas City futures surged 29¢ to $9.11 a bushel.

Corn futures for December delivery rose 7¢ to $6.83 a bushel.

Soybean futures for November delivery gained 1 1/4¢ to $14 a bushel. Soymeal added $3.40 to $410.20 a short ton, and soybean oil fell 0.47¢ to $62.81 a pound.

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2. Grain Inspections For Export Fall Week-to-Week, USDA Says

Inspections of corn and wheat for overseas delivery declined week-to-week while soybean assessments rose, according to the USDA.

Corn inspections in the seven days that ended on Sept. 1 declined to 518,373 metric tons, the agency said.

That's down from 689,451 metric tons the previous week, but well above the 338,716 tons examined during the same week a year earlier.

Wheat assessments dropped to 477,657 metric tons from 631,326 tons a week earlier, but were up from 412,649 tons at the same point last year, the government said.

Soybean inspections, meanwhile, were reported at 495,845 metric tons last week.

That's up from 439,811 metric tons a week earlier and well above the 93,653 tons assessed during the same week in 2021, the USDA said.

The new marketing year started on Sept. 1 for both corn and soybeans so marketing year-to-date data was available only for a single day.

Wheat inspections since the start of the grain's marketing year on June 1 now stand at 5.6 million metric tons, down from the 6.62 million tons examined during the same timeframe a year earlier, the agency said in its report.

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3. Dry Weather Expected in Much of Northern Plains, Western Midwest

Dry weather will prevail in much of the upper and western Midwest today as red-flag warnings are in effect in western North Dakota and all of Montana and Wyoming and conditions are ripe for wildfires in several states including South Dakota and Nebraska.

In western North Dakota, winds will gust up to 35 miles an hour while relative humidity will drop as low as 11%, according to the National Weather Service.

In southern South Dakota and northern Nebraska, winds will be sustained from 15 to 20 miles an hour with gusts of up to 30 miles per hour, the agency said.

Humidity will drop as low as 10% in western Nebraska and 15% in central Nebraska.

Thunderstorms will rumble through northwestern Nebraska this evening before spreading throughout the state tonight, with some dry lightning possible.

"Any fire start may be capable of spreading rapidly and exhibiting extreme behavior," the NWS said.

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