1. Soybeans Fall While Wheat Gains Overnight

Soybean futures were lower in overnight trading on favorable weather in parts of the U.S. Midwest.

Rainfall this week has favored parts of Minnesota, Wisconsin, southeastern Iowa, and northern and western Illinois, said Donald Keeney, an agricultural meteorologist with Maxar.

Rains are forecast to spread through much of the Corn Belt through Friday, though it’s expected to be dry into the weekend, the forecaster said.

“Rains through late week will continue to improve moisture for corn and soybean growth, especially in western, central, and eastern areas” of the Midwest, Keeney said.

Wheat futures rose on cold weather in the northern Plains where spring wheat is growing.

Freeze warnings are in effect as temperatures were expected to drop to around 29°F. overnight, on the cusp of being cold enough to damage spring-wheat plants.

Still, continued rainfall in parts of the southern Plains where hard-red winter wheat is growing likely will keep a lid on prices.

“(There are) multiple chances for thunderstorms and widespread rain showers every day through the long-term with marginal risks for severe weather at best due to the time of year it is” in parts of southwestern Kansas, the National Weather Service said in a report early this morning.

Soybean futures for July delivery fell 7¢ to $14.96½ a bushel overnight on the Chicago Board of Trade. Soymeal dropped $1 to $382.80 a short ton, while soy oil lost 0.18¢ to 65.5¢ a pound.

Corn futures for July delivery rose 1¢ to $6.25½ a bushel.

Wheat futures for July delivery gained 8¢ to $6.56½ a bushel overnight, while Kansas City futures added 5¾¢ to $6.04½ a bushel.

2. Weekly Ethanol Production and Inventories Decline

Ethanol output fell and inventories plunged in the seven days that ended on May 21, according to the Energy Information Administration.

Production of the biofuel dropped to an average of 1.011 million barrels last week, down from 1.032 million barrels a week earlier, the EIA said in a report.

In the Midwest, by far the biggest producing region, output averaged 966,000 barrels a day, the agency said.

That’s down from 985,000 barrels, on average, a week earlier.

Gulf Coast production declined to an average of 16,000 barrels a day from 20,000 barrels a week earlier. Rocky Mountain output was unchanged at 10,000 barrels a day.

East Coast production rose to 10,000 barrels a day from 7,000 the previous week, and West Coast output increased to 10,000 barrels a day from 9,000 barrels, on average, a week earlier, government data show.

Stockpiles of ethanol, meanwhile, plunged to 18.98 million barrels in the week through May 21.

That’s down from 19.433 million barrels a week earlier and the lowest level since the seven days that ended on Dec. 30, 2016, the EIA said in its report.  

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3. Freeze Warnings In Effect in Parts of the Northern Plains

Freeze warnings, freeze watches, and frost advisories are in effect for much of North Dakota and parts of Minnesota and Wisconsin this morning, according to the National Weather Service.

Temperatures overnight were expected to fall as low as 29°F. in parts of northern North Dakota and northern Minnesota, the NWS said in a report early this morning.

Temperatures in northern Wisconsin also were forecast to drop to around 29°F. tonight into Friday, the agency said.

Freeze watches also are in effect for much of north-central and northwestern North Dakota where temperatures were expected to fall to around 33°F. overnight and may drop to about 30°F. tonight.

Farther south in parts of eastern Kansas, severe thunderstorm, flash flood, and flood warnings are all in effect as storms rumble through the area.

Rain, strong winds with gusts of up to 60 °F. and penny-size hail are all risks associated with the storms, the NWS said.

Between 2 and 3.5 inches of rain had already fallen as of about 5 a.m. local time with more expected. Flash flooding is ongoing or should start shortly, the agency said.