3 Big Things Today, July 31, 2024

1. Wheat futures lower in overnight trading

Wheat futures fell in overnight trading as the U.S. winter harvest rolls on and on favorable weather in growing areas worldwide.

About 82% of the domestic winter wheat crop was in the bin at the start of the week, the U.S. Department of Agriculture said in a report. That’s up from 76% a week earlier and the prior five-year average of 80%. 

Seventy-four percent of U.S. spring wheat was in good or excellent condition as of Sunday, down from 77% a week earlier, the agency said. That’s still well above the 42% that earned top ratings at the same point last year. 

One percent of the crop was harvested at the beginning of the week, USDA said. 

Last week’s three-day tour of North Dakota’s spring wheat fields showed a favorable outlook for the crop. 

The Wheat Quality Council’s annual tour of the state showed projected yields of 54.5 bushels an acre, up from last year’s forecast for 47.4 bushels, U.S. Wheat Associates said. Durum yields are projected at 45.3 bushels an acre, up from 43.9 bushels a year earlier. 

“After three days of analyzing, counting and calculating, participants came to a common conclusion: North Dakota wheat farmers may have produced their best crop in decades,” US Wheat said. 

Wheat futures for September delivery lost 1½¢ to $5.22½ a bushel overnight on the Chicago Board of Trade, while Kansas City futures dropped 3¼¢ to $5.47 a bushel. 

Corn futures for December delivery fell ¼¢ to $4.04¾ a bushel.

Soybean futures for November delivery rose 8½¢ to $10.29¾ a bushel. Soymeal gained $3 to $321 a short ton and soy oil was up 0.24¢ to 42.14¢ a pound. 

2. AGCO sales plunge 15% in second quarter

AGCO Corp., the maker of agricultural equipment, said second-quarter revenue fell 15% on an annual basis, citing soft market conditions and production cuts designed to reduce inventory. 

Sales in the three months that ended on June 30 were reported at $3.25 billion, down from $3.82 billion during the same quarter a year earlier, the company said in its quarterly earnings report. 

North American sales dropped 16% to $837.8 million and South American sales plunged 42% to $348.9 million. Sales in Europe and the Middle East (EME) lost 4.4% to $1.9 billion, and Asia Pacific sales declined 34% to $157 million. 

In the first six months of 2024, total sales lost 14% to $6.18 billion, AGCO said. North American sales dropped 18% to $1.57 billion, South American sales were down 41% to $652.3 million, EME sales fell 1.7% to $3.63 billion and Asian sales dropped 26% to $323.7 million.

“Softer industry sales, lower end-market demand and de-stocking efforts all contributed to lower sales [in the North American market],” the company said. “The most significant sales declines occurred in the hay equipment, mid-range, and high-horsepower tractor categories.”

AGCO on July 25 agreed to sell most of its grain and protein business to American Industrial Partners (AIP) for about $700 million in cash. 

3. Hot weather, storms forecast for much of Midwest

Extreme heat and storms are on tap today throughout a large chunk of the Midwest, according to National Weather Service maps.

Heat warnings and severe thunderstorm warnings have been issued from eastern New Mexico east along the Gulf Coast, and from north central Iowa south into east Texas, the maps show. 

Indexes in eastern Nebraska and western Iowa are forecast to hit 112° Fahrenheit this afternoon. Values are forecast to reach as high as 109° in eastern Oklahoma. 

Those working outside are advised to take precautions to avoid heat related illnesses, the agency said.

Counties in central Iowa are seeing severe thunderstorms with winds of up to 60 mph, NWS said. Intense winds and storms are also rolling through central Illinois this morning, bringing nickel-sized hail to the area.