1. Soybeans and Corn Modestly Higher Overnight on Iowa Concerns

Soybean and corn futures were modestly higher in overnight trading on concerns about the crop in Iowa.

The Pro Farmer Crop Tour rolled through the state yesterday, where participants saw damage not only from the derecho wind storm that blew through last week, but also the drought that’s moved into the region.

Those on the tour pegged the corn crop in Iowa, the biggest producer of the grain, at 177.8 bushels an acre, down from the 2019 tour average of 182.8 bushels an acre and the prior three-year average of 183.6 bushels an acre.

Soybean pods in a 3- by 3-foot area came in at 1,146.3 pods, up slightly from 1,106.9 pods a year earlier and the average of 1,136.3 pods.

Parts of west-central Iowa are suffering from severe or extreme drought conditions, according to the US Drought Monitor.

Under a severe drought, dryland corn will see extremely low yields and livestock will be stressed. An extreme drought indicates imminent crop damage, according to the monitor.

About 23% of the state was seeing drought conditions as of Aug. 18, up from 19% a week earlier. Three months ago, zero percent of the state was suffering from drought, data from the Drought Monitor show.

Soybean futures for November delivery rose 1¢ to $9.06 1/4 a bushel overnight on the Chicago Board of Trade. Soymeal gained $1 to $301.60 a short ton and soy oil declined 0.01¢ to 31.51¢ a pound.

Corn futures for December delivery added 1 1/2¢ to $3.40 ¾ a bushel.

Wheat futures for September delivery gained 3 1/4¢ to $5.31 ¾ a bushel, while Kansas City futures rose 2 1/2¢ to $4.55 ¼ a bushel.

2. New-Crop Corn Sales For Export Increase Week-to-Week, USDA Says

New-crop sales of corn for overseas delivery increased week-to-week while soybean sales declined, according to the USDA.

Corn sales for delivery in the marketing year that starts on Sept. 1 totaled 723,300 metric tons, the agency said.

An unnamed country bought 365,100 metric tons, Mexico took 94,800 tons, South Korea was in for 66,200 tons, Japan took 55,500 tons and Taiwan purchased 41,300 tons from U.S. supplies.

Sales for delivery in the marketing year that ends on Aug. 31 were reported at 61,600 metric tons, down 84% from the previous week and 63% from the prior four-week average.

Japan bought 70,200 tons, Colombia purchased 52,300 tons, Guatemala was in for 26,800 tons, Mexico took 10,600 tons and China bought 8,600 tons. An unknown country canceled shipments for 87,600 tons, El Salvador nixed cargoes of 29,200 tons and Peru canceled orders for 8,000 tons, the USDA said.

Soybean sales, meanwhile, fell from the prior week but were still relatively robust.

Exporters sold 2.57 million metric tons of beans, down from 2.84 million a week earlier. China bought 1.65 million metric tons, an unnamed country took 701,000 tons, Pakistan was in for 66,000 tons, Bangladesh purchased 55,000 tons and Taiwan took 24,000 tons.

Old-crop soybean sales dropped to a marketing-year low of 34,500 tons, down 81% from the previous week and 77% from the four-week average.

The Netherlands purchased 137,000 metric tons, Indonesia was in for 88,800 tons, Spain took 40,000 tons, Japan was in for 38,700 tons and France purchased 23,000 tons. An unnamed country canceled cargoes of 342,800 tons and China nixed shipments of 32,800 tons, the USDA said.

Wheat sales for delivery in the grain’s marketing year that started on June 1 totaled 523,000 metric tons last week, up 42% from the prior seven-day period but down 8% from the average.

The Philippines took 182,900 tons, Brazil bought 90,000 tons, an unknown buyer purchased 86,000 tons, Mexico was in for 79,500 tons and Italy purchased 65,800 tons. Indonesia redacted an order for 20,000 tons, the agency said.

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3. Scattered Storms Expected Into The Weekend in Parts of Iowa and Wisconsin

Scattered thunderstorms are expected in parts of western and central Iowa this morning, though no severe weather is expected, according to the National Weather Service.

The system is expected to hang around through tonight and into tomorrow, mostly in northern Iowa counties, the NWS said in a report early this morning. There’s a “marginal” risk of severe weather.

Showers also are possible this afternoon across northern and central Wisconsin.

“Lightning will be the main threat, but an isolated severe storm with gusty winds and hail cannot be ruled out,” the agency said. “Thunderstorm chances will spread south toward the Interstate 90 corridor tonight with lightning as the main threat.”

The storm chances are expected to linger through Saturday night, with an isolated thunderstorm or two possible that could bring gusty winds and hail, the NWS said.