Grain & Soybean Prices Rise Amid Heat and Drought Concerns
AY
1. Grain, Soybean Futures Rise on Weather Concerns
Grain and soybean futures climbed in overnight trading due to ongoing concerns over dry conditions in the Canadian Prairies and extreme heat in the U.S. Midwest.
According to Commodity Weather Group (CWG), southern Canada is expected to experience warmer, drier weather in early July, which could put crops under increased stress. Similarly, dry conditions in the U.S. northern Plains and Canadian Prairies may negatively affect yields.
In Europe, hot and dry weather is expected to impact around 60% of the EU’s corn crop, CWG reported.
The U.S. National Weather Service issued heat advisories and warnings across much of the eastern U.S., with the current heatwave projected to persist at least through today. Heat indexes are expected to reach triple digits again in parts of eastern Illinois and Indiana.
Drought continues to intensify in Nebraska, where 77% of the state is now affected—up from 76% last week, according to the U.S. Drought Monitor. However, only 6.1% of a nine-state area that includes top corn and soybean producers Iowa and Illinois was experiencing drought as of June 24, down from 7.5% the previous week.
On the Chicago Board of Trade overnight:
· December corn futures rose 6½¢ to $4.27½ per bushel.
· September wheat futures gained 6¢ to $5.42¾ per bushel, with Kansas City wheat up 4½¢ to $5.38¼.
· November soybean futures rose 6¢ to $10.22½ per bushel.
· Soymeal increased 40¢ to $287.50 per short ton.
· Soy oil edged up 0.04¢ to 52.89¢ per pound.
2. Weekly Export Sales of Corn, Soybeans Decline
U.S. export sales of corn and soybeans fell during the week ending June 19, according to USDA data.
Corn sales totaled 741,200 metric tons—down 18% from the previous week and 17% below the four-week average. Top buyers included:
Colombia: 191,000 tons
Japan: 178,900 tons
Mexico: 105,300 tons
Unnamed country: 100,400 tons
Spain: 93,000 tons
Sales were partially offset by cancellations from Egypt (70,700 tons) and Turkey (55,000 tons). Corn exports fell 16% to 1.47 million tons.
Soybean sales reached 402,900 metric tons, down 16% from the prior week but 83% above the four-week average. Key buyers included:
Netherlands: 63,400 tons
Mexico: 60,600 tons
Germany: 58,300 tons
Bangladesh: 55,000 tons
An unnamed country canceled 38,600 tons. Soybean exports dropped 24% week-over-week to 265,600 tons.
Wheat sales also decreased, falling to 255,200 metric tons from 427,200 the prior week. Leading buyers:
Japan: 93,600 tons
Mexico: 83,200 tons
South Korea: 22,500 tons
Jamaica: 17,400 tons
Colombia: 14,000 tons
Wheat exports totaled 256,300 tons, down from 363,500 tons the previous week.
3. Storms Forecast in Central Iowa; Heat Persists Across Midwest
Storms are expected to develop in central Iowa from this evening into tomorrow morning, with strong winds being the primary threat, the National Weather Service reports.
More storms are likely over the weekend, but the chance of severe weather on Sunday remains low.
Temperatures in the region will stay elevated, peaking in the high 90s on both Saturday and Sunday.
Further east, heat advisories remain in effect across parts of Illinois, Indiana, and Ohio. In northern Indiana and southern Michigan, heat indexes could reach as high as 101°F later today.
Scattered showers may bring only “limited” relief from the heat, according to the NWS.