3 Big Things Today, April 23, 2024

1. Wheat futures jump in overnight trading

Wheat futures surged in overnight trading as the condition of the U.S. winter crop dropped week to week. 

Fifty percent of the crop was in good or excellent condition as of Sunday, down from 55% the previous week, according to the U.S. Department of Agriculture.

Seventeen percent was headed, up from 11% a week earlier and the prior five year average of 13%.

In Kansas, the biggest U.S. producer of winter wheat, 36% of the crop earned top ratings, down from 43% seven days earlier, the agency said. About 4% was headed in the state. 

Dry weather has curbed crop conditions as little or no rain has fallen in much of the region in the past two weeks. 

About 53% of Kansas was suffering from drought conditions as of April 16, up from 29% a week earlier, according to the U.S. Drought Monitor. 

Twenty-seven percent of Oklahoma was suffering from drought, up from 15% the previous week, the monitor said. 

Wheat stress will persist in about 35% of the southern Plains, while parts of Colorado and Kansas may see some relief Thursday through Sunday, Commodity Weather Group said in a note to clients. 

Light frost is forecast for the central Plains and eastern Midwest this week, though the threat of any wheat losses is low, CWG said. 

Wheat futures for July delivery jumped 10¢ to $5.97½ a bushel overnight on the Chicago Board of Trade, and Kansas City futures added 9¢ to $6.11½ a bushel. 

Corn futures were up 1¢ to $4.50¾ a bushel. 

Soybean futures for July delivery rose 2¾¢ to $11.79¼ a bushel. Soymeal was up $1 to $345.80 a short ton and soy oil gained 0.07¢ to 45.73¢ a pound. 

2. Weekly export inspections of corn improve

Inspections of corn for overseas delivery rose week to week while bean and wheat assessments declined, according to data from USDA.

Export inspections of corn rose to 1.62 million metric tons in the seven days that ended on April 18, the agency said in a report. 

That's up from the 1.35 million tons examined the previous week and well above the 938,841 tons assessed during the same week last year. 

Examinations of soybeans for offshore delivery declined to 435,256 tons from 446,570 tons a week earlier, but were up from the 379,662 tons inspected a year earlier, USDA said. 

Wheat inspections were reported at 450,275 tons, down from 620,139 tons the previous week. Still, that was up from the 363,826 tons that were assessed at the same point in 2023. 

Since the start of the marketing year on Sept. 1, the agency has inspected 30.3 million metric tons of corn for overseas delivery, up from 22.4 million tons during the same timeframe a year earlier. 

Soybean assessments since the beginning of September now stand at 38.5 million tons. That’s down from the 47 million tons that were inspected in the same period last year, the government said. 

Wheat inspections since the start of the grain's marketing year on June 1 are now at 16.4 million tons, down from the 17.9 million assessed at this point in 2023, USDA said in its report. 

3. Isolated storms expected in central Iowa

Isolated storms are forecast for much of central Iowa overnight, with more expected starting Thursday, according to the National Weather Service.

Thunderstorms will refire on Thursday evening and last into the weekend, NWS said in a report early this morning. 

Some of the storms may turn severe, especially on Friday, and heavy rainfall is possible. 

In the southern Plains, meanwhile, storms are forecast in the central and eastern Oklahoma and Texas panhandles, the agency said. 

“Some of these storms could become strong to severe with all hazards being possible,” NWS said. 

Still, dry weather is expected to prevail in the western panhandles, increasing the chances for wildfires, amid gusty winds and low humidity. 

Elevated fire conditions are forecast into the weekend, the agency said.