1. Soybeans and Corn Decline in Overnight Trading

Soybeans and grains were mostly lower in overnight trading as the weekly decline in crop conditions slowed.

Some 60% of the U.S. soybean crop was in good or excellent condition as of Sunday, unchanged from the previous week, indicating stable conditions week-to-week.

A week earlier, crop conditions dropped by 3 percentage points, according to the U.S. Department of Agriculture.

About 64% of the corn crop earned top ratings, down narrowly from 65% the previous week. That’s still better than the previous week’s decline, which also was 3 percentage points, the agency said.

Rainfall in parts of the Midwest last week gave crops a boost.

Much of the eastern Corn Belt is looking decent from a moisture perspective, according to the U.S. Drought Monitor.

In a nine-state area that includes Iowa and Illinois, the biggest producers of soybeans and corn, around 36% was seeing some drought conditions, the monitor said. Still, only 0.2% of the land area in those states was suffering from extreme or exceptional drought.

Also weighing on prices are concerns about demand after the U.S. Supreme Court last week ruled that small oil refineries can apply for exemptions to ethanol-blending rules under the Renewable Fuel Standard, which could reduce the amount blended into gasoline.

Soybean futures for July delivery fell 6¢ to $13.06½ a bushel overnight on the Chicago Board of Trade. Soymeal fell $4.70 to $354.60 a short ton, while soy oil gained 0.65¢ to 60.68¢ a pound.

Corn futures for July delivery were down 3¼¢ to $5.44 a bushel.

Wheat futures for July delivery lost 2¢ to $6.49½ a bushel, while Kansas City futures rose 2¼¢ to $6.29 a bushel.

2. Weekly Export Inspections Down For Corn, Wheat, and Beans

Inspections of corn, wheat, and beans for offshore delivery all declined week-to-week, according to the USDA.

Corn inspections in the seven days that ended on June 24 totaled 1.01 million metric tons, down from 1.78 million tons a week earlier, the agency said in a report.

That’s also down from the 1.24 million tons inspected during the same week last year.

Soybean assessments were reported at 103,965 metric tons, down from 205,155 tons the previous week, the USDA said.

Last week’s total was less than a third of the 334,642 tons assessed during the same week in 2020.

Wheat inspections came in at 285,654 metric tons, down from 551,490 tons a week earlier, the government said. That’s also well below the 515,359 tons examined for overseas delivery at the same point last year.

Sales, however, have been robust since the start of the marketing year on Sept. 1.

The USDA has inspected 56.8 million metric tons of corn for overseas delivery since the beginning of September. That’s well ahead of the 33.3 million tons assessed during the same time frame a year earlier, the agency said.

Soybean inspections since Sept. 1 are now at 57.2 million metric tons, well ahead of the 36.8 million tons examined during the same period last year.

Wheat assessments since the start of the grain’s marketing year on June 1 now stand at 1.53 million metric tons, below the 2 million tons inspected at the same point a year earlier, the USDA said in its report.

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3. Flood Warnings and Watches in Effect Amid Excessive Rain

Flood warnings and watches are still in effect from southern Oklahoma into northwestern Indiana, according to maps from the National Weather Service.

In northwestern Missouri, several rivers and streams are nearing or already breaching their banks, flooding low-lying farmland and other areas, the NWS said in a report early this morning.

Roads have been closed due to flooding in the area, which is expected to last through Friday evening places before waters drop below flood levels, the agency said.

In southeastern Kansas, several rivers are overrunning flood stages and spilling into low-lying areas.

Some areas reported up to 4 inches of rain in a short time frame overnight, leading to flooding. Additional precipitation is expected through Tuesday morning, which will exacerbate the situation, the NWS said.

In northwest Illinois and northeastern Indiana, rainfall is causing rivers to rise. Flooding is expected on several rivers before retreating on Wednesday, the agency said.