1. Rise in wheat futures in overnight trading
Wheat futures were again higher in overnight trading amid poor spring wheat conditions and calls for dry weather in some growing areas.
Only 11% of the U.S. spring wheat crop was rated good or excellent on Sunday, down from 16% a week earlier, the Department of Agriculture said in a report released this week.
At the same time last year, 68% of the harvest had achieved top marks, the agency said.
Little to no rain has fallen across much of North Dakota over the past week, according to government maps. Dry weather was also persistent in northern South Dakota and much of Minnesota.
Intense heat is likely to threaten crops more over the next 10 days, the Commodity Weather Group said in a report. Stress is likely to persist for at least two-thirds of the wheat in North Dakota, Minnesota and the Canadian Prairies, the CWG said.
All of North Dakota, the largest producer of spring wheat in the United States, is suffering from some sort of drought, according to the US Drought Monitor. Almost 8% experience exceptional drought, the worst possible score.
Some 90% of South Dakota experiences drought conditions and nearly 20% suffers from extreme drought, the second worst possible rating, according to Monitor data.
Wheat futures for September delivery rose 2 ¢ to $ 7.02½ a bushel overnight on the Chicago Board of Trade, while Kansas City futures gained 4¼ ¢ to 6, $ 64½ per bushel.
Corn futures for delivery in May fell ¼ ¢ to $ 5.65½ a bushel.
Soybean futures for November delivery fell 6½ ¢ to $ 13.82 a bushel. Soybean meal rose $ 1.40 to $ 371.10 per short ton, while soybean oil fell 0.8 to 63.13 per pound.
2. The use of corn by ethanol producers increases modestly in the third quarter
According to a USDA report, ethanol producers used 1.28 billion bushels of corn to make biofuel in the third fiscal quarter that ended on May 31.
The amount of corn used for food totaled 386 million bushels, the use for food was reported at 888 million bushels and exports were reported at 1.04 billion bushels for a total use of 4 , 11 billion bushels.
Total corn use is now pegged at around 15 billion bushels for the 2020-21 marketing year ending Aug.31, the USDA said in a previous report.
Of this total, 5.05 billion will be used to manufacture ethanol, 1.42 billion will be used for food and industrial uses (excluding ethanol), 5.725 billion will go to food and 2.85 billion bushels will be exported , the agency said.
In the 2021-2022 marketing year that begins Sept. 1, the USDA projects total corn use of 14.84 billion bushels.
Ethanol production will cost 5.2 billion bushels, food and industrial uses will be 6.615 billion bushels, and about 2.5 billion bushels of corn will be exported in the next year of commercialization, the USDA said.
Biofuel production in the December-February quarter – the latest data available – totaled 3.44 billion gallons, the agency said. This is down from 3.86 billion the previous quarter.
Total usage in the quarter through February was 3.49 billion gallons, up from 3.78 billion in the previous three-month period.
Ethanol production in 2020 totaled 13.9 billion gallons, up from 15.8 billion a year earlier, the USDA said.
3. Three-digit heat indices expected in parts of Missouri
Extremely hot weather is forecast for parts of north-central Missouri and far eastern Kansas starting overnight, according to the National Weather Service.
Heat indices will be in triple digits for several days in parts of the region, the NWS said in a report early this morning. Actual temperatures will be in the lower 90s for a while.
Further north in parts of northern Illinois, isolated thunderstorms are likely this afternoon, with lightning and heavy rain locally possible in some areas.
Flooding is expected to continue along some rivers in northern Illinois, the agency said.
Still, it’s going to be hot with heat indices reaching 103 ° F. On weekends until early next week.
Scattered thunderstorms are also likely throughout the weekend in parts of northern Illinois, the NWS said.