1. Corn Futures Rise Overnight While Beans Fall

Corn futures were higher in overnight trading while soybeans and wheat were down slightly.

Demand for corn has been strong in the marketing year that started on Sept. 1.

Exports since the beginning of September are now at 47.3 million metric tons, a 78% increase from the same time frame last year, according to the U.S. Department of Agriculture.

Commitments from overseas buyers to purchase U.S. corn were reported at 68 million metric tons, a 73% jump from the same period a year earlier, the USDA said.

The USDA last week reported sales of 1.22 million metric tons, two cargoes totaling 1.36 million tons and an order for 1.7 million tons of corn to China.

Still, rainfall in parts of the northern Plains, southern Plains, and other areas where crops are growing is keeping a lid on prices.

As much as six times the normal amount of rain has fallen in the past week in much of North Dakota and the western half of South Dakota, according to the National Weather Service.

About 16% of North Dakota was in an “exceptional” drought on May 18, the worst rating possible, according to the U.S. Drought Monitor. A week earlier, none of the state was seeing such dire conditions.

The drought monitor will update its weekly report tomorrow.

Corn futures for July delivery rose 4¼¢ to $6.24½ a bushel overnight on the Chicago Board of Trade.

Soybean futures for July delivery fell 4¼¢ to $15.07½ a bushel. Soymeal dropped $2.30 to $384 a short ton, while soy oil lost 0.16¢ to 66.53¢ a pound.

Wheat futures for July delivery fell 3¢ to $6.53½ a bushel overnight, while Kansas City futures lost 2¾¢ to $6.01¾ a bushel.

2. Iowa Lawmakers Remind Biden of Promise on Biofuels

Lawmakers from Iowa sent a letter to President Joe Biden and Agriculture Secretary Tom Vilsack yesterday urging them to support the biofuels industry and seeking information on how proposed tax changes will affect farmers.

Sens. Chuck Grassley and Joni Ernst and Reps. Randy Feenstra, Ashley Hinson, and Mariannettee Miller-Meeks sent a letter reminding Biden that he promised to promote renewable fuels including ethanol to support rural America.

“However, the administration’s proposed infrastructure bill would spend $174 billion to subsidize electric vehicles while hardly mentioning the biofuel industry,” the letter said.

The president’s proposed $2 trillion infrastructure plan – called the American Jobs Plan – would include money toward increasing production of biofuels, Vilsack said in a statement when the plan was officially introduced in March.

“This investment in manufacturing will allow an expansion of bio-based products and renewable fuel production, giving U.S. growers and producers another market for their goods and supporting good-paying American jobs,” he said.

The plan also would improve broadbrand infrastructure and help provide clean and safe drinking water to rural communities, Vilsack said.

The Iowa lawmakers said in their letter that they want Biden to recognize that biofuels can be used as a permanent energy solution to help decarbonize the transportation sector.

“Biofuels should not be treated as a transition fuel, but prioritized as a fuel of the future,” the letter said.

Also in the letter, the lawmakers requested data from the USDA showing how a proposed change in tax law – specifically affecting capital gains taxes – would affect farm estates.

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3. Thunderstorms Set to Roll Across Oklahoma and Texas Panhandles

Thunderstorms will rumble across much of the southern Plains this afternoon, according to the National Weather Service, where hard-red winter wheat is growing.

The storms will roll through the Oklahoma and Texas panhandles bringing large hail and “damaging” winds, the NWS said in a report early this morning.

“A tornado is also possible,” the agency said. “Heavy rain could cause localized flooding.”

In the northern Plains, where spring wheat was recently planted, there’s a slight chance of showers this afternoon and evening. No severe weather is forecast.

In eastern Oklahoma and western Arkansas, meanwhile, thunderstorms are likely to fire up tomorrow, the agency said.

Flooding likely will occur starting tomorrow evening and continuing through Friday morning. The storm also may produce very large hail and tornadoes if a so-called supercell forms in the area, the NWS said.