3 Big Things Today, May 2, 2024

1. Grain, soybean futures jump overnight

Grain and soybean futures surged in overnight trading amid adverse weather in several growing areas and on technical buying. 

Dry weather in the U.S. southern Plains has led to the deterioration of crop conditions. 

About 49% of the winter wheat crop in the U.S. was rated good or excellent at the start of the week, down a percentage point from the previous week, according to the Department of Agriculture. Thirty percent of the crop was headed as of Sunday, up from 17% a week earlier.

Still, only 28% earned top ratings and 21% was headed during the same week last year. 

Little or no rain has fallen in much of southwestern Kansas and the Oklahoma and Texas panhandles where hard red winter wheat is growing, according to the National Weather Service’s precipitation page. 

In Brazil, meanwhile, the condition of the second corn crop worsened in Paranà, according to state agency Deral. 

Dry weather has curbed production of the safrinha crop in the South American country. 

Wheat futures for July delivery jumped 11¾¢ to $6.11 a bushel overnight on the Chicago Board of Trade, and Kansas City futures added 11¢ to $6.36 a bushel. 

Corn futures surged 5¢ to $4.55¾ a bushel. 

Soybean futures for July delivery gained 11¢ to $11.81¼ a bushel. Soymeal was up $4.60 to $353.60 short ton, and soy oil rose 0.19¢ to 43.45¢ a pound. 

2. Pasteurization in dairy inactivates bird flu virus

Pasteurization of dairy products inactivates the bird flu virus, the U.S. Food and Drug Administration said after testing an additional hundreds of retail dairy samples. 

Additional tests were done on dairy products including cottage cheese, sour cream and fluid milk, FDA said in a report yesterday. 

“In addition to the preliminary results released late last week on an initial set of 96 retail milk supply samples, these results reaffirm our assessment that the commercial milk supply is safe,” the agency said. 

Samples of infant formula and powdered milk meant for toddlers also were taken and all results from the tests were negative. 

The government is also testing raw milk sent to pasteurization and processing for commercial purposes. Consumption of raw milk is not advised, FDA said. 

“As the situation evolves, the FDA will continue to consider all ongoing scientific research related to the effectiveness of pasteurization for HPAI (highly pathogenic avian influenza) in bovine milk,” the agency said in its report. 

3. Floods, strong winds forecast for Oklahoma

Flood warnings and wind advisories have been issued for southern and central Oklahoma, according to the National Weather Service. 

Heavy rain overnight has led to flooding this morning in southwestern Oklahoma as 2 to 3 inches of precipitation have already fallen, NWS said in a report. The Deep Creek near Randlett, Oklahoma, hit 22.5 feet yesterday, topping flood stage of 20 feet. 

Strong winds are expected in central Oklahoma today with gusts of up to 45 mph expected, the agency said. 

Further north, thunderstorms are expected into this evening in much of central and west central Illinois. 

Some of the storms may turn severe with hail and strong winds the primary concerns, NWS said. 

“Scattered thunderstorms will likely continue overnight, but are not expected to remain severe,” the agency said.