1. Soybean and Corn Futures Rise on Forecasts For Hot Weather

Soybeans and corn were higher in overnight trading as extremely hot weather is expected in much of the Midwest this weekend.

Heat index values in much of the Corn Belt are pegged between 100 and 110 degrees Fahrenheit tomorrow, according to weather forecasters. Heat advisories have been issued for most growing states.

In southern Minnesota, southern Wisconsin and a few counties in northern Iowa, an excessive heat watch has been issued for all day tomorrow.

“Dangerously hot conditions with heat index values up to 106 (degrees are) possible,” the National Weather Service said in a report early this morning. “Extreme heat and humidity will significantly increase the potential for heat-related illnesses, particularly for those working or participating in outdoor activities.”

The U.S. Drought Monitor released yesterday showed some counties in west-central Iowa are now in a severe drought, which indicates crop losses are likely, water shortages are common and water restrictions are likely to be imposed.

A wider area of western Iowa is in a moderate drought, under which there may be some damage to crops, the monitor said.

Soybean futures for December delivery rose 4 1/4¢ to $8.95 ¼ a bushel overnight on the Chicago Board of Trade. Soymeal fell 30¢ to $294.50 a short ton and soy oil jumped 0.44¢ to 30.28¢ a pound.

Corn futures for December delivery were up 2 3/4¢ to $3.40 ¼ a bushel overnight.

Wheat futures for September delivery fell 1/2¢ to $5.34 ¾ a bushel while Kansas City futures lost 2 1/2¢ to $4.46 ¼ a bushel.

2. Export Sales of Corn Jump Week-to-Week While Soybean Sales Decline

Sales of corn for offshore delivery jumped in the seven days that ended on July 9 while bean sales plunged, according to the USDA.

Corn sales for delivery in the marketing year that started on Sept. 1 rose to 981,100 metric tons, up considerably from the previous week’s 195,242 tons and the largest amount since May 7, the government said in a report.

China was the big buyer at 768,300 metric tons, Colombia purchased 109,800 tons, Peru was in for 74,700 tons, Saudi Arabia took 65,000 tons and Japan bought 52,500 tons. The amount would’ve been higher but an unnamed buyer canceled cargoes for 145,700 tons.

New-crop corn sales totaled 655,400 metric tons as China bought 600,000 tons, Japan took 54,000 tons, Guatemala purchased 32,500 tons, Honduras was in for 20,900 tons and Costa Rica bought 8,000 tons. An unnamed country canceled shipments for 62,000 tons.

Old-crop soybean sales, meanwhile, plunged 67% week-to-week to 313,000 metric tons, the USDA said.

Indonesia was the week’s big buyer at 95,500 tons, followed by Egypt at 75,000 tons, Pakistan at 58,300 tons, Mexico at 55,700 tons and Tunisia at 37,100 tons.

For the 2020-2021 marketing year that starts on Sept. 1, sales totaled 767,600 metric tons as China bought 389,000 tons, an unknown buyer took 176,000 tons, Spain was in for 75,000 tons, Algeria purchased 35,000 tons and Mexico was in for 19,600 tons, the agency said.

Wheat sales for delivery in the marketing year that started on June 1 were reported at 764,400 metric tons, up from 326,140 tons the previous week.

China purchased 323,700 metric tons, Mexico took 132,800 tons, Indonesia was in for 81,500 tons, Japan was in for 67,300 tons and the Philippines bought 66,000 tons, the USDA said in its report.

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3. Heat Wave Expected in Corn Belt This Weekend With Heat Indexes of 110 Degrees

It’s going to be a scorcher in much of the Midwest this weekend as heat advisories have been issued from west-central Nebraska east to northwestern Indiana and from central North Dakota south into Texas, according to the National Weather Service.

In eastern Iowa and western Illinois, heat index values are expected to be around 105 degrees Saturday afternoon, the NWS said in a report early this morning. A heat advisory is in effect in the area from 1 p.m. until 8 p.m. tomorrow.

In central Nebraska, index values are pegged as high as 107 degrees Fahrenheit, the agency said.

It’s going to be even hotter in southern Illinois and Missouri where heat indexes are expected to hit as high as 110 degrees tomorrow afternoon.  

People working outside are advised to drink plenty of fluids or reschedule strenuous activity when possible, the NWS said.