Wednesday 21 June 2017

WHEAT FUTURES DECLINE OVERNIGHT; TRUMP VISITS IOWA TO TALK TRADE, ETHANOL

1. Wheat Lower Overnight as Investors Who Were Long Book Profits
Wheat futures were lower in overnight trading as those who were long the market, or bet on higher prices, sold contracts and booked profits after prices hit two-year highs. Corn and soybeans were little changed.

The price had been rising for the past several days as dry weather threatens U.S. spring wheat. The crop was rated 41% good or excellent as of Sunday, down from 45% a week earlier and 76% a year ago.

Adverse weather also is expected to curb overseas production of the grain, leaving many to wonder how much of the grain will actually be produced this year.

Still, global inventories at the end of the 2017-2018 marketing year are expected to be at record highs, according to the U.S. Department of Agriculture. That will, at the very least, temper enthusiasm from bulls until more is known about global production.  

Wheat futures for July delivery fell 5¼¢ to $4.67¼ a bushel overnight on the Chicago Board of Trade. Kansas City wheat lost 4¾¢ to $4.69½ a bushel.
Corn futures added ¾¢ to $3.70¾ a bushel in Chicago.

Soybean futures for July delivery rose ¼¢ to $9.28 a bushel. Soy meal was unchanged at $300.90 a short ton, and soy oil fell 0.01¢ to 32.01¢ a pound.

2. President Trump Expected to Visit Cedar Rapids Wednesday to Talk Trade, Ethanol
President Donald Trump is expected to visit Iowa today along with Agriculture Secretary Sonny Perdue and Commerce Secretary Wilbur Ross.

With those two in tow, it’s likely the topic will be on trade, and judging by the venue, Kirkwood Community College in Cedar Rapids, it’s likely it will have something to do, in part at least, with agriculture.

There’s a lot to talk about. Trade is always a hot topic, as is ethanol. Senator Charles Grassley of Iowa said on a conference call that he doesn’t believe Trump will announce ethanol-blend obligations during his visit today, but he said it’s possible they’ll be announced sometime this week.
The plan is to talk to those in the agricultural program at KCC then hold an evening rally at the convention center in Cedar Rapids.

Trump has long expressed his support for the ethanol industry. In February, he sent a letter to attendees of the National Ethanol Conference saying he valued “the importance of renewable fuels to America’s economy and our energy independence.”

He said at the time he’d work with the Renewable Fuels Association to boost the industry and reduce regulations that have harmed ethanol producers.

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3. Tropical Storm Cindy to Hit Gulf, Extremely Hot Weather Expected in Nebraska
The weather maps are all shades of color along the Gulf Coast as Tropical Storm Cindy makes its way to land.

A tropical storm warning is in effect for much of east Texas, Louisiana, and parts of Alabama and Mississippi, according to the National Weather Service. Further inland, flash flood warnings and tornado watches have been issued.

In the Midwest, hot weather is again creeping into parts of Nebraska. While the heat won’t be as intense as the 120˚F. temperatures in the southwestern U.S., parts of Nebraska may see heat indexes in the triple digits this afternoon, the NWS said, which could stress newly planted corn and soybeans.
The good news is, scattered thunderstorms are expected in parts of Iowa, Wisconsin, and northern Illinois starting today and stretching into tomorrow evening, the agency said. BY TONY DREIBUS.

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