1. Corn Futures Modestly Higher in Overnight Trading

Corn futures were slightly higher in overnight trading on the results of the Pro Farmer crop tour and as hot weather moves across the Midwest.

The tour pegged U.S. corn production at 14.82 billion bushels on an average yield of 177.5 bushels an acre. The Department of Agriculture’s earlier this month projected output at 15.3 billion bushels on yield of 181.8 billion bushels.

Those on the tour had expected to see damage from the derecho wind storm that blew through two weeks ago, leveling corn fields and farm buildings across much of Iowa.

"Even before reaching Iowa, we had some suspicions about the corn crop's ability to hit a record,” Pro Farmer’s Brian Grete said in a statement. “There is simply too much variability in the corn crop across most of the seven Crop Tour states. It's difficult to determine how much yield and production Iowa has lost, but the state's crop has gone backward since Aug. 1, and it's still sliding.”

Hot weather is moving back into the Midwest with heat advisories issued for today in several states including South Dakota, Nebraska, Minnesota, Iowa and Wisconsin, according to the National Weather Service.

That could exacerbate dry conditions in some parts of the Corn Belt.

Corn futures for December delivery added 2¢ to $3.42 ½ a bushel overnight on the Chicago Board of Trade.

Soybean futures for November delivery rose 3 1/2¢ to $9.08 ¼ a bushel. Soymeal gained $1 to $298.50 a short ton and soy oil added 0.28¢ to 31.95¢ a pound.

Wheat futures for September delivery gained 1 1/2¢ to $5.36 ½ a bushel, while Kansas City futures rose 1/2¢ to $4.57 ¼ a bushel.

2. Speculative Investors More Bullish Beans and Less Bearish Corn Last Week

Money managers increased their net-long positions, or bets on higher prices, in soybeans last week to the largest bullish position in more than two years while turning less bearish on corn, according to the Commodity Futures Trading Commission.

Speculators held 106,394 net-long positions in soybean futures in the week that ended on Aug. 18, the CFTC said in a report. That’s well above the previous week’s 28,272 contracts and the largest such position since May 8, 2018.

Investors held 128,111 net-short positions, or bets on lower prices, in corn futures last week, the agency said. That’s down from 192,787 net shorts the previous week and the smallest bearish position since the seven days that ended on March 31.

Fund managers and other large investors likely turned more bullish on beans and less bearish on corn as damage from the derecho wind storm and dry weather in the Midwest is being assessed.

In wheat, speculators held 15,149 net-short positions in soft-red winter futures, down from 18,701 the previous week, the CFTC said.

Money managers also held a net-short position of 27,754 hard-red winter wheat futures last week, down from 35,164 contracts a week earlier, the agency said in its report.

The weekly Commitment 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. Heat Advisory Issued From Nebraska to Wisconsin as Indexes to Hit Triple Digits

A heat advisory is in effect for a large chunk of land stretching from north-central Nebraska east into western Wisconsin starting this afternoon, according to the National Weather Service.

In parts of southeastern South Dakota, heat indexes are expected to hit 102 degrees Fahrenheit, the NWS said in a report early this morning.

Further east, indexes are forecast to be between 100 and 105 degrees Fahrenheit in parts of southern Minnesota, southern Wisconsin and northeastern Iowa, weather maps show.

Those working outside in such conditions are advised to take frequent breaks and limit strenuous activity to short periods of time.

In central Iowa, meanwhile, temperatures may top 100 degrees several times between now and Thursday.

“Hot temperatures and high humidity may cause heat illnesses to occur,” the NWS said. “Young children and pets should never be left unattended in vehicles under any circumstances. Drink plenty of fluids and take extra precautions if you work or spend time outside.”