3 Big Things Today, July 17, 2024

1. Grains, soybeans higher in overnight trading

Grain and soybean futures were higher in overnight trading amid technical buying and some global weather concerns. 

Investors who were short the market, or bet on lower prices, likely bought back their contracts and reduced or liquidated their bearish positions.

Weather woes in some growing areas globally are underpinning futures. 

Ukraine said its corn and sunflower harvests may fall by 35% due to hot weather and drought.

“Productive moisture reserves are extremely low,” the Ukrainian Agri Council said in a statement. “Despite the fact that the temperature is expected to drop, the lack of precipitation will negatively affect the development of these crops.”  

The country’s corn crop is starting to bloom and a lack of precipitation could lead to a “critical” situation, the council said. 

About 15% to 30% of corn from Romania was “burned” by heat this year, leading to a reduction in global supplies, the report said. 

In Canada, limited rains and elevated temperatures in parts of Alberta and Saskatchewan will increase stress on spring wheat, said Don Keeney, an agricultural meteorologist with Maxar. 

Moisture in southern growing areas of Brazil is forecast to decline amid drier weather later this week, the forecaster said. 

Soybean futures for November delivery rose 4¾¢ to $10.48 a bushel overnight on the Chicago Board of Trade. Soymeal gained 20¢ to $310.30 a short ton and soy oil was up 0.32¢ to 45.26¢ a pound. 

Corn futures for December delivery added 3½¢ to $4.12¼ a bushel.

Wheat futures for September delivery jumped 7¢ to $5.37¾ a bushel, while Kansas City futures gained 8¾¢ to $5.59 a bushel. 

2. Venezuela offers opportunities for ag exports, USDA says

Exporters of agricultural products from the U.S. may have a new customer in mind, one that most wouldn’t think as a destination: Venezuela. 

The country was the sixth-biggest importer of U.S. agricultural products in South America last year, importing $670 million worth of goods, USDA said in an attaché report from its Caracas office. While that's down 10% year over year, growth opportunities abound. 

“Venezuela continues to grow its retail sector, supermarkets are well stocked, and U.S. brand awareness and acceptance have increased over the last two years,” the report said. 

Agricultural imports by the South American country have the potential to improve moving forward, and the U.S. is well positioned due to product pricing, quality, and geographical proximity, USDA said. 

U.S. companies stand to benefit from the popularity of products from the States and a “de facto dollarization of the Venezuelan economy,” the agency said. More than 60% of the country’s food is derived from imports and shipments from the U.S. can arrive in three to five days, a much shorter timeframe than other suppliers. 

Still, there are challenges: Venezuela has trade agreements with countries in South and Central America, inflation and devaluation have hurt consumer purchases, and the country’s processes for permitting and registering certain ag or food items can be cumbersome, USDA said. 

3. Flood warnings, watches issued in Missouri, Illinois

Flood warnings and watches have been issued for parts of southern Missouri, southern Illinois and northern Arkansas, according to the National Weather Service. 

Storms are forecast in the region this morning with some producing large hail and winds up to 60 mph, the agency said. 

As much as 5 inches of precipitation fell in the overnight hours and another 1 to 3 inches of rain are expected per hour this morning. Flooding is ongoing in some areas. 

In the southern Plains, strong storms are likely this afternoon, mostly in the western Texas and Oklahoma panhandles, NWS said. 

Thunderstorms are possible every day through Monday. Stronger storms may develop in the region on Friday and Saturday, the agency said.