1. Corn and Soybeans Slightly Higher in Overnight Trading

Corn and soybeans were slightly higher in overnight trading as hot weather continues in growing regions of the U.S.

Heat indexes in parts of Kansas, Missouri, Oklahoma, and Arkansas are expected to top 110°F. today, according to the National Weather Service.

Commodity Weather Group in a report said dryness in the Midwest is focused on the southwestern quarter of the Corn Belt, which could raise stress on corn during pollination.

Don Keeney, a meteorologist with Maxar, said in a report that dryness could build in central and eastern parts of the Midwest through next week, though rains will favor parts of the western Midwest through the weekend.

Prices also are gaining after the U.S. Department of Agriculture earlier this week cut its estimate for corn acres to 92 million from a March estimate of 97 million. The area planted to soybeans was little changed at 83.8 million acres.

Corn futures for July delivery added 2¢ to $3.62½ a bushel overnight on the Chicago Board of Trade.

Soybean futures rose 2¢ to $9.01 a bushel. Soymeal futures gained 30¢ to $304.90 a short ton, and soy oil gained 0.18¢ to 29.19¢ a pound.

Wheat futures for July delivery fell ½¢ to $4.98¼ a bushel, while Kansas City futures rose ½¢ to $4.43¼ a bushel. 

2. Ethanol Production Jumps to Highest Level in More Than Three Months

Ethanol production continues to climb, last week rising to the highest level in more than three months, according to the Energy Information Administration.

Output of the biofuel increased to an average of 900,000 barrels a day, up from 893,000 barrels a week earlier and the highest since the seven days that ended on March 20, the EIA said in a report.

In the Midwest, by far the biggest producer, output averaged 862,000 barrels a day last week, up from 857,000 barrels the previous week. That’s also a more-than three-month high.

Production on the East Coast rose to 12,000 barrels a day, on average, from 11,000 barrels previously.

Gulf Coast and West Coast production each rose to an average of 9,000 barrels a day from 8,000 a week earlier.

The lone decliner for the week was the Rocky Mountain region where output declined to 9,000 barrels a day, on average, from 10,000 barrels a week earlier, government data show.

Stockpiles, meanwhile, fell again to the lowest level in more than three years.

Inventories of the biofuel plunged to 20.164 million barrels last week, down from 21.034 million seven days earlier and the lowest level since the week that ended on Jan. 6, 2017, according to the EIA.

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3. Hot Weather Continues in Parts of Southern Midwest Ahead of Holiday Weekend

The heat wave continues in the southern Midwest as advisories continue in parts of southeastern Kansas, southwestern Missouri, and most of eastern Oklahoma, according to the National Weather Service.

Heat indexes are forecast to be between 110°F. and 113°F. in parts of eastern Oklahoma and western Arkansas today, the NWS said in a report this morning. The heat advisory remains in effect for the area until 8 p.m. local time.

“The combination of hot temperatures and high humidity will combine to create a dangerous situation in which heat illnesses are possible,” the agency said.

Farther north, scattered showers are expected as thunderstorms roll across parts of eastern Iowa and northern Illinois, the forecasters said.

Some area rivers are already over their banks in the area.

There’s a small chance of storms in the area throughout the Independence Day weekend, though severe weather is not anticipated, the NWS said.