3 Big Things Today, July 22, 2022

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1. Wheat and corn fall overnight on Ukrainian grain deal

Wheat and corn futures were down in trading overnight as a deal was reportedly struck to ship Ukrainian grain to overseas buyers, and after a disappointing report on export sales to United States.

According to several media, an agreement has been concluded with Russia which would allow Ukrainian cereals to cross the Black Sea. The BBC said it will be signed today by Ukrainian, Russian and Turkish officials and UN Secretary General Antonio Guterres.

Grain shipments from Ukraine have been drastically reduced since Russian forces began attacking the country in February.

Sales of U.S. wheat to overseas buyers fell 50% in the seven days ending July 14 to 511,100 metric tons, the Agriculture Department said in a report. It’s also down 10% from the previous four-week average.

The Philippines bought 110,100 metric tons, an unnamed country took 107,000 tons, Mexico bought 50,700 tons and Taiwan was in for 44,700 tons. The total would have been higher, but Egypt, South Korea and Honduras all canceled orders.

Corn sales fell 43% week-over-week to 33,900 metric tons, down 82% from average, the USDA said.

Japan bought 87,300 metric tons from the United States, Mexico 38,800 tons, Venezuela 10,200 tons, El Salvador 2,000 tons and South Korea 1,400 tons. An unnamed country canceled shipments of 94,600 metric tons, the agency said.

Soybean sales totaled 203,500 metric tons, rebounding from a sharp reduction in sales a week earlier. China bought 146,900 tons, Indonesia 72,200 tons, Germany 68,800 tons, Japan 55,100 tons and Mexico 13,200 tons.

The total would have been higher, but an unknown destination canceled shipments totaling 172,900 tons, the USDA said.

Prices could also drop overnight as rainfall is expected in parts of the central United States this weekend and next week.

“Thunderstorm clusters are increasingly dispersing from the Plains into the Midwest beginning tonight and into next week,” Commodity Weather Group said in a report. Some weather models show dry weather in the Midwest over the next one to five days, but model support is strong for precipitation.

Temperatures are also expected to moderate next week after the heat wave continues to hover over the central Corn Belt, the forecaster said.

Wheat for September delivery fell 29¢ to $7.77 ¼ a bushel overnight at the Chicago Board of Trade, while Kansas City futures fell 25 1/2¢ to $8.35 ¾ bushel.

Corn futures for December delivery fell 6¢ to $5.67½ a bushel.

Soybean futures for November delivery fell 5 1/4¢ to $12.96 ¼ a bushel. Soybean meal fell $3.10 to $382.10 a short ton, while soybean oil futures rose 0.21¢ to 56.27¢ a pound.

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2. Beef production jumps to record, pork production rises modestly in June

Beef production hit a record high in June as overall commercial production of red meat increased, according to a report from the U.S. Department of Agriculture.

Beef production last month hit 2.45 billion pounds, a 2% year-over-year increase, according to the USDA. Production in May was reported at 2.29 billion pounds

About 3.04 million head of cattle were slaughtered, up 3% from the same month in 2021, although live weight fell about 7 pounds to 1,339 pounds, the agency said.

Pork production rose slightly from a year earlier to 2.26 billion pounds in June. Production in May totaled 2.18 billion pounds. Hog slaughter fell 1% to 10.5 million head, and average lightweights rose four pounds to 288 pounds.

Commercial production of red meat last month totaled 4.72 billion pounds, up 1% from the same month last year, the USDA said. In May, production was reported at 4.48 billion pounds.

In the first six months of 2022, however, red meat production fell 1% year-on-year to 27.7 billion pounds.

Beef production from January to June rose 2% from the same period a year earlier, while pork production fell 3%, the agency said in its report.

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3. Central Corn Belt Return Heat Advisory

Heat advisories are back this afternoon from northwest Colorado east to southern Indiana and south to northern Louisiana, according to the National Weather Service.

Heat indices in central Nebraska are expected to reach 110 degrees Fahrenheit this afternoon, the NWS said in a report early this morning, the agency said.

In southern Iowa, values ​​will reach around 105 degrees. Heat indices in central Missouri will range from 100 to 109 degrees.

Red flag warnings were issued in parts of western South Dakota and eastern Wyoming during extremely dry weather, the NWS said.

Winds will be sustained at 15 to 25 miles per hour with gusts of up to 30 miles per hour, and relative humidity will drop by up to 11%, the agency said.

Rain may fall over the weekend in parts of central Iowa.

“Strong to severe thunderstorms are expected later Saturday afternoon through Saturday evening,” the NWS said. “The highest severe risk is in northern Iowa, with the main hazards expected to be damaging wind gusts and large hail.”


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