3 Big Things Today, July 8, 2024

1. Soybeans, grains down in overnight trading

Soybean and grain futures were lower in overnight trading amid favorable weather in parts of the U.S. and as the wheat harvest rolls on, adding to global supplies. 

Rainfall is expected in several growing states this week including Oklahoma, Arkansas, Missouri, and Illinois, according to weather maps. The remnants of Hurricane Beryl are expected to roll through several states. 

While the rainfall will be welcome in areas, it will exacerbate flooding in some states, the National Weather Service said. 

Remnants from the hurricane will be focused on the Delta and southern Ohio Valley region this week, Commodity Weather Group said in a note to clients, after it made landfall in southeast Texas overnight.

Prices also are being pressured as the U.S. winter wheat harvest rolls on. 

About 54% of the crop was collected at the start of last week, up from 40% seven days earlier and the prior five year average of 39%, the U.S. Department of Agriculture said. USDA is scheduled to release its weekly crop progress report this afternoon. 

Seventy-two percent of the U.S. spring wheat crop was in good or excellent condition last week, up from 71% a week earlier and 48% a year ago, the agency said. 

Soybean futures for November delivery fell 18½¢ to $11.11¼ a bushel overnight on the Chicago Board of Trade. 

December corn was down 5¼¢ to $4.18¾ a bushel. 

Wheat for September delivery fell 9¢ to $4.19½ a bushel in Chicago while Kansas City futures plunged 12½¢ to $5.86½ a bushel. 

2. Sales of corn, soybeans for export decline

Sales of corn and beans for export were both down in the seven days that ended on June 27, USDA said in a report that was delayed due to Independence Day. 

Corn sales were reported at 357,200 metric tons, down 34% from the previous week and 57% from the prior four-week average, the agency said. 

The list of countries purchasing U.S. corn was short as an unnamed country was the big buyer at 138,400 tons, followed by Colombia at 78,800 tons, Japan at 47,000 tons, and the Dominican Republic at 16,200 tons. 

Exports for the week came in at 894,400 tons, down 24% from the week prior. 

Soybean sales also fell, dropping 19% from the previous week and 32% from the average to 228,400 metric tons, USDA said. 

China bought 66,500 tons, the Netherlands took 58,500 tons, Costa Rica was in for 28,800 tons, Mexico purchased 16,200 tons, and Indonesia bought 13,200 tons. 

Exports totaled 304,100 tons, down 22% week to week, the government said. 

Wheat sales totaled 805,300 metric tons, up from 667,200 tons a week earlier, USDA said. 

Mexico purchased 154,700 tons, the Philippines bought 154,400 tons, Taiwan was in for 104,200 tons, Brazil took 90,000 tons, and South Korea purchased 67,400 tons. 

Exports for the week totaled 308,600 tons, USDA said in its report. 

3. Flooding forecast from Texas to Indiana

Flood warnings and watches have been issued for a large chunk of land stretching from east Texas into southern Indiana, according to the National Weather Service.

In southern Missouri, excessive runoff on saturated soil is possible, which likely will lead to flooding in several counties. 

One to 3 inches of rain are likely in the area, with 4 to 6 inches possible in some areas, the agency said. 

In southern Illinois, the remnants of Hurricane Beryl likely will bring heavy rain to the area this week, NWS said in a report early this morning. 

“While many locations will receive beneficial rainfall amounts, there is a chance for more than 3 inches, which would cause at least localized flooding” the agency said.