1. Soybeans and Grains Jump in Overnight Trading

Soybeans and grains surged in overnight trading on signs of strong demand for agricultural commodities and on some adverse weather in growing regions.

Soybean sales since the start of the marketing year on Sept. 1 are now at 61.5 million metric tons, up 47% from the same time frame a year earlier, according to the U.S. Department of Agriculture.

Corn sales now stand at 68.6 million metric tons, a 72% year-over-year increase, the USDA said.

Exporters reported sales of 152,400 metric tons of corn for delivery to an unnamed country in the marketing year that starts on Sept. 1, the USDA said on Thursday.

Wheat sales since the start of the grain’s marketing year on June 1 are now at 25.9 million metric tons, down 4% from the same period last year, the government said.

Still, SovEcon on Friday lowered its outlook for Russian wheat production to 80.9 million metric tons from a prior outlook for 81.7 million tons. Spring-wheat weather hasn’t been the best in growing regions, and the area planted to winter wheat was smaller than in years past, the consultancy said.

In the U.S., parts of the northern Plains are suffering from extremely dry weather.

About 17.7% of North Dakota is suffering from an “exceptional drought,” the most severe category possible, according to the U.S. Drought Monitor. That’s up from 16.7% a week earlier. And 99% of the state, the biggest U.S. producer of spring wheat, was seeing some sort of drought as of May 25, the Drought Monitor said.

Soybean futures for July delivery added 11½¢ to $15.42 a bushel overnight on the Chicago Board of Trade. Soymeal gained $2.50 to $398 a short ton, while soy oil rose 0.32¢ to 66.11¢ a pound.

Corn futures for July delivery jumped 10¢ to $6.66¾ a bushel.

Wheat futures for July delivery surged 14½¢ to $6.78 a bushel overnight, while Kansas City futures gained 14¢ to $6.27¼ a bushel.

2. Speculative Investors Curb Bullish Bets Across the Board

Money managers reduced their net-long positions, or bets on higher prices, in corn and beans last week and turned bearish on soft-red winter wheat futures, according to the Commodity Futures Trading Commission.

Investors held 268,751 corn-futures contracts as of May 25, down from 294,370 contracts a week earlier, the CFTC said in a report.

That’s the smallest such position since the seven days that ended on Dec. 21.

Speculators held a net-long position of 133,657 soybean-futures contracts last week, down from 144,594 contracts a week earlier.

That’s the smallest bullish position for beans since April 13, government data show.

In wheat, investors reduced their net-long positions in hard-red winter to 23,294 futures contracts, the CFTC said.

That’s down from 25,946 contracts a week earlier and the smallest such position since April 20, the agency said.

For soft-red winter wheat, meanwhile, investors turned bearish, holding a net-short position, or bets on lower prices, of 2,534 futures contracts as of May 25.

That’s a shift from a net-long position of 7,180 contracts and the largest bearish position for soft-red winter wheat since April 20, the CFTC said in its report.

The weekly Commitments of Traders report from the Commodity Futures Trading Commission shows trader positions in futures markets.

The report provides positions held by commercial traders, or those using futures to hedge their physical assets; noncommercial traders, or money managers (also called large speculators); and nonreportables, or small speculators.

A net-long position indicates more traders are betting on higher prices, while a net-short position means more are betting futures will decline.

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3. Flood Warnings and Watches Issued in Parts of the Southern Plains

Flood warnings and watches are in effect for parts of eastern Oklahoma and northern Arkansas this morning, according to the National Weather Service.

As much as 3 inches of rain is expected, the agency said. The precipitation will fall on already saturated soils, creating rapid runoff and flooding of streams and rivers in some areas.

Rivers and streams in the area are already overrunning their banks.

“Several rounds of showers and thunderstorms are expected over portions of western and northern Arkansas today into early Wednesday,” the NWS said in a report early this morning. “The rain will be heavy at times.”

In the southern Plains, where hard-red winter wheat is growing, storms are possible today and tonight with some storms becoming severe. Large hail and damaging winds are the most likely risks.

In parts of North Dakota, meanwhile, there’s a slight chance of storms today into tonight, though severe weather isn’t expected.