1. Soybean and Grain Futures Rise Overight

Soybeans and grains were higher in overnight trading amid ongoing weather woes in South America and signs of strong demand globally.

About three-fourths of Brazil’s safrinha corn crop will remain dry through at least the next 10 days, adding to crop stress and losses, Commodity Weather Group said in a report.

The southern quarter of planting areas may see some rainfall today and tomorrow, the forecaster said.

AgRural, a Brazilian agriculture consultancy, on Monday curbed its outlook for the safrinha crop to 65 million metric tons from its prior outlook for 73 million tons. It pegged yields at a three-year low.

China has been snapping up Brazilian soybeans in the past few weeks, importing 12.6 million metric tons of the oilseeds in April, according to trade data from the South American country.

Brazil exported about 12.6 million metric tons of soybeans to China in April, up 19% year-over-year and the highest in 24 years, the data show.

In the U.S., meanwhile, planting is moving at a rapid pace.

Some 67% of the U.S. corn crop was in the ground as of Sunday, up from 46% at the same time last year and well ahead of the 52% planted at this point in 2020, the U.S. Department of Agriculture said in a report yesterday.

Some 20% of the crop had emerged vs. the prior five-year average of 19%.

About 42% of soybeans were planted at the start of the week, almost double the normal 22% for this time of year, the agency said; 10% had emerged vs. the average of 4% for this time of year.

Spring wheat was 70% planted at the start of the week, ahead of the average of 51%, and 29% of the crop had emerged vs. the normal 20%, the USDA said.

Winter wheat was 38% headed as of Sunday, behind the normal pace of 46% for this time of year. About 48% of the crop was in good or excellent condition, down a point from the previous week and behind the 53% that earned top ratings during the same week last year.

Investors also may be squaring positions ahead of tomorrow’s World Agricultural Supply and Demand Estimates report from the USDA.

Soybean futures for July delivery rose 8¼¢ to $15.95¾ a bushel overnight on the Chicago Board of Trade. Soymeal added $2.30 to $444.60 a short ton, and soy oil fell 0.24¢ to 63.6¢ a pound.

Corn futures for July delivery gained 5¼¢ to $7.17 a bushel.

Wheat futures for July delivery rose 7¢ to $7.37½ a bushel, while Kansas City futures gained 3¼¢ to $7.06¾ a bushel.

2. Export Inspections of Corn Decline While Beans and Wheat Improve

Export inspections of corn fell in the seven days that ended on May 6 while soybean and wheat examinations improved, according to the USDA.

Corn assessments totaled 1.71 million metric tons, down from 2.21 million tons a week earlier, the agency said in a report.

That was still above the 1.41 million metric tons examined during the same week a year earlier.

Soybean inspections last week were reported at 236,918 metric tons, up from 144,348 tons the previous week, government data show. The total was down from the 535,686 tons assessed at the same point last year.

Wheat examinations for offshore delivery rose slightly to 545,587 metric tons from 532,704 tons a week earlier, well above the 343,417 tons assessed during the same week in 2020, the USDA said.

Since the start of the marketing year on Sept. 1, the government has inspected 45.2 million metric tons of corn for overseas delivery.

That compares with the 25.2 million tons assessed during the same time frame a year earlier.

Soybean assessments since the beginning of September are now at 55.7 million metric tons, up from 34.3 million in the same period last year, the agency said.

Wheat inspections since the start of the grain’s marketing year on June 1 now stand at 23.7 million metric tons, just ahead of the 23.4 million tons assessed at this point a year ago, the USDA said in its report.

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3. Freeze Warnings in Effect in Parts of Wisconsin and Michigan

Freeze warnings are in effect this morning in parts of Wisconsin and Michigan with frost advisories issued from Nebraska to northern Ohio, according to the National Weather Service.

In northern and central Wisconsin, temperatures overnight were forecast to drop as low as 24°F. in some counties, though most affected areas likely saw low-30s, the NWS said in a report early this morning.

Almost the entire state of Michigan is under a freeze warning this morning as temperatures were expected to fall as low as 25°F., the agency said.

In northern Iowa, meanwhile, temperatures fell into the low 30s, which along with light wind could form frost in some counties.

In the southern Plains, meanwhile, some showers and thunderstorms are possible tonight into Wednesday.

“Showers and a few thunderstorms will be possible late tonight mainly across western north Texas and southern Oklahoma,” the NWS said. “Hail up to the size of half dollars and wind gusts up to 50 mph are the primary concerns. Although showers will continue into the evening, thunderstorm chances will diminish across the area this afternoon.”