1. Soybean and Grain Futures Drop in Overnight Trading

Soybeans and grains fell in overnight trading amid favorable weather in parts of the U.S. Midwest.

Rain fell over the weekend and more is expected in parts of the Corn Belt later this week, which likely will boost crop prospects in the region.

Much of the central U.S. has seen little or no rain in the past seven days, according to the National Weather Service. Parts of southern Iowa into central Illinois and Indiana have had rain in the past week, the NWS said.

Parts of Iowa and Illinois, the biggest producers of soybeans and corn in the U.S., are expected to see precipitation this week.

The U.S. Drought Monitor last week showed the worst conditions are in the Northern Plains.

Every county in North Dakota is suffering from some sort of drought. Central North Dakota is seeing an exceptional drought, the worst-possible rating, the monitor said.

Elsewhere in the Midwest, the levels of drought vary.

In Iowa, 76% of the state was suffering from drought conditions as of June 15, up from 57% a week earlier. Only counties in northern Illinois are seeing drought, the Drought Monitor said.

The U.S. Department of Agriculture will release its weekly crop progress report today. Last week, 68% of the U.S. corn crop was rated good or excellent, while 62% of soybeans earned top ratings, according to the USDA.

Soybean futures for July delivery dropped 22¢ to $12.91 a bushel overnight on the Chicago Board of Trade. Soymeal fell $6.10 to $373 a short ton, while soy oil lost 0.6¢ to 55.41¢ a pound.

Corn futures for July delivery declined 14¼¢ to $5.52 a bushel.

Wheat futures for July delivery fell 5¼¢ to $6.60½ a bushel, while Kansas City futures lost 5¾¢ to $6.10 a bushel overnight.

2. China Reportedly Buys 480,000 Metric Tons of U.S. Beans After Price Drop

China purchased 480,000 metric tons of U.S. soybeans, according to a Reuters report citing people familiar with the deal, after prices slumped on Thursday due to the stronger dollar. 

Buyers in the Asian country likely saw the price decline as a buying opportunity, Commerzbank economist Michaela Helbing-Kuhl said in a note to clients. Prices on Thursday hit their lowest since March. 

“It will take some time for these soybeans to arrive in China,” she said. “They are to be dispatched from the U.S. Pacific Coast in October.”

Demand from China has been strong, though most purchases have been from Brazil, a situation compounded by harvest and loading delays in Brazil earlier in the season. 

Helbing-Kuhl said in her note that Chinese customs data show May soybean imports from Brazil jumped 82% month-to-month to 9.23 million metric tons. That accounted for almost all of the 9.61 million tons that were imported last month. 

The U.S. shipped 21.5 million metric tons of soybeans to China in the first five months of 2021, while Brazil exported 15.7 million metric tons to the world's largest importer of the oilseeds, Commerzbank said. 

“The shift in the ratio is due not least to the Phase 1 deal between the U.S. and China; this resolved the trade dispute that had caused U.S. exports to China to collapse in 2018/19,” she said. 

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3. Thunderstorms Expected in Parts of Kansas Monday

Thunderstorms are expected to linger in parts of southern Kansas today, though severe weather isn’t expected, according to the National Weather Service.

Storms are expected to fire up again starting Wednesday and last through Sunday, the NWS said in a report early this morning.

Still, temperatures will be high with heat indexes of 100°F. to 105°F. expected throughout the week, the agency said.

Some rainfall is expected starting tomorrow in parts of central Iowa, weather maps show, which likely will give growing crops a boost in the area.

In parts of northern Illinois, precipitation is expected starting Wednesday and lasting through the weekend.

In the southern Plains where hard-red winter wheat is being harvested, thunderstorms are possible today across parts of the Oklahoma and Texas panhandles, the NWS said. No severe weather is expected.

Temperatures in the Texas panhandle are expected to jump with heat indexes around 106°F. Wednesday and Thursday, though some thunderstorms are possible Thursday through Sunday, the agency said.