1. Wheat Futures Lower in Overnight Trading

Wheat futures were lower in overnight trading as rain falls in parts of the southern Plains and on some technical selling.

Corn and soybeans were little changed. Investors seem to be taking a break after yesterday’s surge in prices.

There are rain forecasts for 2 to 3 inches of rain in parts of southwestern Kansas this weekend, according to the National Weather Service, which should further improve soil moisture for growing hard-red winter wheat.

“Unseasonably cool, wet weather is expected for the middle and latter portions of Memorial Day weekend,” the NWS said. “Several periods of rain and embedded thunderstorms are expected Saturday night through Memorial Day.”

Severe weather, however, is not expected this weekend.

About 67% of the U.S. winter wheat crop was headed as of Sunday, just behind the prior five-year average of 69%, the Department of Agriculture said in a report this week.

In Kansas, the biggest wheat-growing state in the U.S., 84% was headed.

Some 47% of the U.S. crop was rated good or excellent at the start of the week, down from 48% a week earlier, the USDA said. Fifty-five percent of the Kansas crop earned top ratings.

Things aren’t as rosy in the northern Plains where spring wheat is growing. About 99% of North Dakota, the biggest spring-wheat producer, is suffering from some sort of drought, up a percentage point from the previous week, according to the U.S. Drought Monitor.

Almost 18% of North Dakota is suffering from an “exceptional drought,” the worst rating possible, the monitor said. That’s up from about 17% a week earlier.

Freeze warnings also have been issued for parts of the northern Plains as cold weather moved through the region overnight.

Wheat futures for July delivery fell 3¢ to $6.73¼ a bushel overnight on the Chicago Board of Trade, while Kansas City futures lost 3¢ to $6.23¼ a bushel.

Corn futures for July delivery rose 1¢ to $6.65½ a bushel.

Soybean futures for July delivery added ¾¢ to $15.37¾ a bushel. Soymeal gained 30¢ to $390.60 a short ton, while soy oil lost 0.05¢ to 66.76¢ a pound.

2. Export Sales of Corn Jump While Bean and Wheat Sales Fall

Sales of corn to overseas buyers jumped while bean and wheat sales declined, according to the USDA.

Corn sales in the seven days that ended on May 20 totaled 555,900 metric tons, up from 277,600 metric tons a week earlier, the agency said in a report.

Mexico was the big buyer at 378,200 metric tons, China took 168,000 tons, South Korea was in for 64,500 tons, Panama purchased 23,700 tons and Honduras bought 6,500 tons of U.S. corn.

Unnamed countries canceled shipments of 70,500 metric tons.

Sales for the 2021-2022 marketing year that starts on Sept. 1 were reported at a whopping 5.69 million metric tons, the USDA said.

China bought 5.64 million tons, followed by Panama at 131,900 tons, Japan at 50,000 tons, Costa Rica at 32,000 tons, and an unnamed destination at 9,000 tons. Mexico nixed cargoes totaling 178,000 tons.

Still, the large cancellations expected by this week didn’t materialize.

Exports for the week came in at 529,300 tons, down 7% from the prior week.

Soybean sales, meanwhile, fell to 55,900 metric tons last week, down 34% from the previous week and 65% from the prior four-week average, the government said.

Indonesia bought 74,900 metric tons, Egypt was in for 52,000 tons, Mexico took 34,800 tons, Japan was in for 13,700 tons, and Vietnam purchased 13,600 tons from U.S. supplies.

Unknown destinations canceled cargoes totaling 168,100 tons.

For the 2021-2022 year, sales totaled 248,300 tons as Mexico bought 162,500 tons and an unnamed country purchased 45,000 tons, the USDA said.

Exports totaled 294,600 tons, down 12% from the previous week.

Wheat sales for delivery in the 2020-2021 marketing year that ends on May 31 fell 76% to 29,500 metric tons. Canada bought 10,400 tons, Burma took 7,000 tons, the Philippines purchased 4,600 tons, Indonesia was in for 4,200 tons, and Japan bought 2,700 tons.

For 2021-2022, however, sales were reported at 373,800 metric tons, up from 317,700 tons the previous week, the agency said.

Nigeria bought 78,000 tons, Japan took 65,000 tons, the Philippines purchased 60,000 tons, Taiwan took 59,200 tons, and Vietnam was in for 53,000 tons.

Exports last week totaled 529,300 metric tons, down 7% week-to-week, the USDA said in its report.

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3. Freeze Warnings In Effect in Parts of the Northern Plains

Freeze warnings have been issued for much of North Dakota and parts of South Dakota, Minnesota, and Wisconsin, according to the National Weather Service.

In North Dakota, temperatures were expected to fall overnight as low as 28 degrees Fahrenheit, the NWS said in a report. The warnings in the state expire at 8 a.m. local time.

In northern Minnesota and Wisconsin, meanwhile, temperatures are in the upper-20s this morning, the agency said. The warning in that area will expire at 9 a.m. local time.

In eastern Iowa, meanwhile, a frost advisory will take effect at midnight tonight and last until early tomorrow morning.

Temperatures are expected to drop into the low-30s with “widespread” frost in the forecast, the NWS said.

In the southern Plains, rain is expected for the Memorial Day weekend. As much as 3 inches of precipitation is forecast for parts of southwestern Kansas starting Saturday night into Sunday morning, the agency said.