1. Grains and Soybeans Higher in Overnight Trading

Grains and soybeans were higher in overnight trading as investors again turn their eye to fundamental factors in the market.

Rainfall in parts of the southern U.S. Midwest likely will slow planting for the next couple of days, but that will improve soil moisture, said Donald Keeney, an agricultural meteorologist with Maxar.

Precipitation is most likely in central and northern parts of the Corn Belt and southern areas tomorrow, he said.

In the southern Plains where hard-red winter wheat is growing, extremely dry weather may fuel wildfires, according to the National Weather Service.

“Today’s fire threat is only elevated and will be mainly wind-driven as the fuels are still fairly dry, given the lack of recent rain, but the humidity values are higher,” the NWS said in a report this morning.

The risk of fire will remain through the weekend but some thunderstorms are forecast in the Oklahoma and Texas panhandles on Monday, the agency said.

About 17% of the U.S. winter-wheat crop had emerged at the start of the week, behind the prior five-year average of 23%, the Department of Agriculture said in a report earlier this week.

The crop was 49% good or excellent as of Sunday, down from 53% the previous week, the USDA said.

The U.S. Drought Monitor, meanwhile, is showing extreme to severe drought in much of North Dakota and counties in northwestern South Dakota.

Pockets of dry weather can be found in parts of Iowa, Nebraska, and western Kansas, the monitor said.

In Brazil, meanwhile, persistent dry weather will continue to add stress to the country’s safrinha corn crop, Maxar’s Keeney said.

Corn futures for July delivery rose 4¢ to $6.48 a bushel overnight on the Chicago Board of Trade.

Wheat futures gained 4¢ to $7.26¾ a bushel, while Kansas City futures added 3¼¢ to $6.99¾ a bushel.

Soybean futures for July delivery rose 8¢ to $15.21¾ a bushel overnight. Soymeal added 60¢ to $422.40 a short ton, and soy oil gained 0.45¢ to 61.61¢ a pound.

2. Ethanol Production Rises to Three-Week High While Stockpiles Plunge

Ethanol output rose to the highest level in three weeks while stockpiles plunged to the lowest since October, according to the Energy Information Administration.

Production of the biofuel increased to an average of 945,000 barrels a day in the week that ended on April 23, the EIA said in a report.

That’s up from 941,000 barrels, on average, the previous week and the highest level since the seven days that ended on April 2.

In the Midwest, by far the biggest producing region, output rose to an average of 897,000 barrels a day, up from 892,000 barrels the previous week and also the highest in three weeks.

West Coast production rose to 10,000 barrels a day last week, up from 9,000 a week earlier.

East Coast output was unchanged at 12,000 barrels a day, and Rocky Mountain production was steady at 10,000 barrels a day, on average, the agency said.

Gulf Coast production declined week-to-week, falling to an average of 17,000 barrels a day from 18,000 barrels the previous week.

Ethanol inventories dropped to 19.736 million barrels in the seven days through April 2 from 20.447 million barrels a week earlier.

That’s the lowest level since the week that ended on Oct. 30, the EIA said in its report.

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3. Flash-Flood Warnings, Watches Issued From Arkansas Through Southern Indiana

Severe weather is rumbling through parts of eastern Oklahoma and northern Arkansas this morning with flash-flood warnings and tornado watches in effect, according to the National Weather Service.

Heavy thunderstorms in the region have already dropped from 2 to 5 inches of rainfall, leading to flash flooding, the NWS said.

Another 1 to 3 inches of precipitation are possible, which likely will exacerbate the flooding, the agency said.

Flash-flood watches are in effect through this evening for parts of southern Illinois, southern Indiana, western Kentucky, and southeastern Missouri.

“The potential for moderate to heavy rainfall continues through midday,” the NWS said. “Additional rainfall totals of 0.5 to 1 inch remain possible. Locally higher amounts cannot be ruled out.”