1. Corn, Beans Higher Overnight on Strong Demand

Corn and soybean futures were higher in overnight trading on continued demand for U.S. agricultural products.

Exporters sold just over 160,000 metric tons of corn to Mexico for delivery in the marketing year that started on Sept. 1, the Department of Agriculture said in a report this week.

On Tuesday, the USDA said exporters also sold 154,400 metric tons of soybeans to an unnamed country.

Demand for corn and beans have been strong in recent weeks, which is driving up prices.

Since Sept. 1, overseas buyers have committed to purchase 24.6 million metric tons of corn from the U.S., a 154% increase from the same point last year. Importers also have bought 38.1 million metric tons of soybeans since the 2020-2021 marketing year started at the beginning of September, a 169% year-over-year increase, the USDA said.  

Wheat futures also rose amid ongoing concerns about winter wheat planting. Extremely dry weather in the past two weeks is causing worries about planting.

Corn futures for December delivery rose 3¢ to $3.88 a bushel overnight on the Chicago Board of Trade.

 Soybean futures for November delivery gained 2¢ to $10.46 a bushel. Soymeal added $1.60 to $357.10 a short ton, and soy oil rose 0.06¢ to 33.15¢ a pound.

Wheat futures for December delivery rose 2¾¢ to $5.95¼ a bushel in Chicago, while Kansas City futures were up 4¼¢ to $5.38½ a bushel.

2.  Dry Weather Leaves Some Farmers to Dust-In Wheat, Which May Not Be The Best Idea

Little to no rain has fallen in much of the U.S. southern Plains in the past two weeks, according to the National Weather Service, leading some farmers to dust-in their wheat or plant it shallower than normal.

The latter may not be the best course of action, according to a report from Kansas State Extension.

“Planting the wheat crop at the normal depth and hoping for rain is probably the best option where soils are very dry,” Kansas State Extension wheat and forage specialist Romulo Lollato and Extension cropping systems agronomist John Holman. “The seed will remain viable in the soil until it gets enough moisture.”

About 52% of the U.S. winter wheat crop was planted as of Sunday, up from 35% a week earlier and ahead of the prior five-year average of 47% for this time of year, the Department of Agriculture said in a report on Monday.

Some 24% of the crop had emerged, up from 10% the previous week and the average of 21%, the USDA said.

Planting wheat shallower than normal could increase the potential for winterkill or leave plants susceptible to freeze damage, the Extension report said.

Wheat that emerges later this month could still meet its yield potential, but plants that emerge in November “almost always” have fewer tillers and face the possibility of decreased yield, Lollato and Holman said.

“If it looks like there’s a good chance the dry weather will continue until at least the back end of the optimum range of planting dates, producers should treat the fields as if they were planting later than the optimum time, as the emergence date will be delayed,” they said. “Rather than cutting back on seeding rates and fertilizer to save money on a lost cause, producers should increase seeding rates, consider using a fungicide seed treatment, and consider using a starter phosphorus fertilizer to improve early-season development.”

There are risks to that approach, however, and growers need to be careful with in-furrow nitrogen or potassium fertilizers because it may make it harder for seeds to absorb enough water for germination, the report said.

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3. Northern Illinois Faces Dry Weather While Hurricane Delta Takes Aim at U.S. Gulf Coast

Parts of northern Illinois are facing extremely dry weather today that could create tinderbox-like conditions, according to the National Weather Service.

Low humidity levels along with gusty winds that are forecast at around 30 mph will create a fire-weather risk starting around midday today, the NWS said in a report early this morning.

In the Gulf of Mexico, meanwhile, more hurricane warnings are in effect as Hurricane Delta takes aim for the U.S.

The storm is heading toward Mexico’s Yucatan Peninsula, threatening the resort towns of Cozumel and Cancun, before it is expected to turn north and bear down on the U.S. Gulf Coast.

Maximum sustained winds are now at about 115 mph.

After hitting the Mexican Riviera Maya today, the hurricane is forecast to hit Louisiana on Friday before weakening to a tropical storm and heading inland to the Mississippi Valley by Sunday, the NWS said.