3 Big Things Today, July 26, 2024

1. Soybean futures lower in overnight trading

Soybean futures were lower in overnight trading amid signs of weak demand for U.S. supplies and favorable weather conditions in much of the Corn Belt. 

Sales of soybeans to overseas buyers in the week through July 18 were reported at 88,6000 metric tons, down 61% from the previous week and 63% from the prior four-week average, the USDA reported yesterday. 

The Netherlands purchased 114,500 metric tons of U.S. beans last week, Indonesia bought 76,300 tons, and Japan purchased 19,500 tons. 

Grains were little changed amid lackluster sales to offshore buyers. 

Corn sales totaled 331,400 metric tons, down 24% weekly and 29% from the average, the USDA said. Japan took 122,400 tons from U.S. sellers, Mexico bought 106,900 tons, and South Korea purchased 81,200 tons. 

Wheat sales plunged 47% week to week and 46% from the average to 309,300 tons, the government reported. South Korea was the big buyer, at 105,000 tons. Nigeria bought 58,800 tons, and Japan bought 50,500 tons, the USDA said. 

Soybean futures for November delivery fell 6¾¢ to $10.72¾ a bushel overnight on the Chicago Board of Trade (CBOT). Soy meal lost $2.60 to $326.60 a short ton, and soy oil was down 0.25¢ to 43.92¢ a pound. 

Corn futures for December delivery dropped 2¢ to $4.18¾ a bushel.

Wheat futures for September delivery rose ¾¢ to $5.38½ a bushel, while Kansas City futures gained 2¢ to $5.63½ a bushel. 

2. Red meat stocks in cold storage decline

Red meat stockpiles in cold storage at the end of June declined month-to-month, according to the USDA. 

Total supplies fell 2% from the previous month and 2% from the same point a year earlier to 905.6 million pounds, the agency reported. 

Beef inventories on the last day of June were down 3%, falling to 410.3 million pounds, the USDA said. The total was unchanged from June 30, 2023. 

Boneless beef stocks were reported at 372.8 million pounds, down 2% from May 31, while beef cuts plunged 10% to 37.5 million pounds. 

Pork stockpiles totaled 470.9 million pounds, down 2% month-to-month and 3% year-over-year, the government said. 

Ham in storage came in at 126.2 million pounds, up 15% from the month earlier but down 8% from the same point last year, the USDA said. 

Bellies totaled 60.5 million pounds, down 16% month-to-month and 14% on an annual basis. Rib supplies dropped 17% from May 31 to 63.4 million pounds. 

Supplies of other red meat, mostly veal and lamb, rose 1% monthly to 24.3 million pounds, the USDA said. 

3. Dry weather forecast for the Nebraska Panhandle

Red flag warnings have been issued for parts of the Nebraska panhandle amid low humidity and intense winds, according to the National Weather Service.

Relative humidity is expected to drop to as low as 20%, the NWS said. Winds will be sustained from 20 to 30 mph and gust up to 35 mph. 

Dry lightning is forecast with storms, the agency said. 

An air quality alert takes effect early this afternoon and lasts through tomorrow morning, as smoke from wildfires in the Pacific Northwest and Canada moves into the area, the NWS said. 

In eastern North Dakota and western Minnesota, heat indexes today are expected to reach about 99°F. High temperatures coupled with high humidity may cause heat illness, the agency said.

No counties in Iowa are suffering from abnormally dry or drought conditions, and only 2.3% of Illinois are seeing abnormally dry areas, according to the U.S. Drought Monitor. The states are the two largest producers of corn and soybeans in the U.S. 

That compares with the start of the year, when 97% of Iowa and 12% of Illinois were seeing dry or drought conditions, the monitor said.