3 Big Things Today, April 22, 2024

1. Wheat futures higher in overnight trading

Wheat futures rose in overnight trading on concerns about dry weather in the U.S. and exports from Ukraine. 

Little or no rain has fallen in the U.S. southern Plains in the past two weeks, according to data from the National Weather Service’s precipitation page, potentially curbing the winter wheat crop that’s growing in the region. 

Winter wheat nationally last week was rated 55% good or excellent, down 1 percentage point from the previous week, the Department of Agriculture said in a report. About 43% of the crop in Kansas, the biggest producer of winter varieties in the U.S., earned top ratings, down 6 points from the week prior. 

The agency is scheduled to release its weekly crop progress report this afternoon. 

In Ukraine, planted area, production and exports are all expected to drop from last year, USDA said in an attaché report last week. 

Total wheat area in the war-torn country is expected to fall 5% in the 2024/2025 marketing year, production is forecast to drop 9% and exports will plunge a whopping 27% year over year, the Ag Department said. 

Wheat futures for July delivery rose 6½¢ to $5.73¼ a bushel overnight on the Chicago Board of Trade, and Kansas City futures added 5¢ to $5.88 a bushel. 

Corn futures were down ½¢ to $4.42½ a bushel. 

Soybean futures for July delivery fell 2¾¢ to $11.63 a bushel. Soymeal was down $3.40 to $339.80 a short ton and soy oil gained 0.36¢ to 45.3¢ a pound. 

2. Cattle on feed up 1% on April 1

The number of cattle on feed at the start of the month rose 1% year over, according to data from USDA. 

Cattle and calves on feed for slaughter in feedlots with capacity of 1,000 or more rose to 11.8 million head in the week through April 1, the agency said in a report. 

Inventories included 7.27 million steers and calves, a 2% increase, and 4.56 million heifers and heifer calves, a 1% increase from the same point a year earlier. 

March placements, meanwhile, plunged 12% to 1.75 million head, USDA said. Net placements totaled 1.69 million head. 

Placements of cattle weighing less than 600 pounds totaled 330,000 head, and those weighing 600 to 699 pounds were reported at 260,000 head. About 460,000 head weighing 700 to 799 pounds were placed, as were 466,000 head weighing 800 to 899 pounds. 

About 170,000 head weighing 900 to 999 pounds were placed, as were 60,000 cattle and calves weighing 1,000 pounds or more, the government said in its report. 

Marketings of fed cattle also dropped in March, falling 14% year over year to 1.71 million head, USDA said. 

3. Dry weather expected in the Dakotas

Red flag warnings have been issued for much of southern North Dakota, counties in northern South Dakota and parts of eastern Montana, according to the National Weather Service.

In south-central North Dakota, winds today will be sustained from 25 to 35 mph with gusts of up to 50 mph in the forecast, NWS said in a report early this morning. 

Relative humidity will drop to around 16%. 

In eastern Nebraska and much of Iowa, strong winds are expected today and tonight. 

In central Iowa, winds will range from 25 to 30 mph and gust up to 45 mph, the agency said. 

“Tree limbs could be blown down and a few power outages may result,” NWS said.