3 big things today, August 22, 2024

1. Soybean futures fall in overnight trading

Soybeans traded lower in overnight trading as investors focused on the potential size of the U.S. crop.

Production in the 2024-2025 marketing year, which begins Sept. 1, is expected to reach 4.589 billion bushels, at a yield of 53.2 bushels per acre, the U.S. Department of Agriculture said in its monthly supply and demand report earlier this month.

The forecast is higher than a previous forecast of 4.435 billion bushels and well above the 4.165 billion expected in the 2023-2024 fiscal year, the government said.

Ending stocks are forecast to rise to 560 million bushels, up from the previous forecast of 435 million and last year’s 345 million bushels, according to U.S. Department of Agriculture data.

Favorable weather throughout most of the growing season has improved crop prospects, but drier weather is forecast for parts of the Midwest and Delta region for the remainder of the week.

Soybean futures for November delivery fell 6 1/4 cents to $9.75 1/4 a bushel overnight on the Chicago Stock Exchange. Soybean meal lost $3.10 to $305.60 a short ton and soybean oil gained 0.06 cents to 39.64 cents a pound.

Corn futures for December delivery fell 1/4¢ to $3.98 a bushel.

Wheat futures rose 2 cents to $5.45 a bushel, while Kansas City futures rose 1 3/4 cents to $5.53 1/2 a bushel.

2. Milk production slightly down in July

According to the Department of Agriculture, milk production in the 24 largest milk-producing states fell slightly compared to the previous year.

Production in July fell 0.2 percent to 18.2 billion pounds compared to the same month last year, the U.S. Department of Agriculture (USDA) said in a report.

Production per cow increased by 2 pounds to 2,047 pounds, and the number of milking cows on dairy farms was reported at 8.88 million, 31,000 fewer than in July 2023.

The agency revised its milk production volume for June downward to 17.9 billion pounds, a 1.5% decrease from a year earlier.

A total of 9.33 million animals produced milk in the three months to June 30, down from 9.41 million a year earlier. Production per cow fell to 6,151 pounds from 6,164 pounds in the same period last year, the government said.

Milk production fell 1.1 percent to 57.4 billion pounds in the quarter through June, the U.S. Department of Agriculture (USDA) said in its report.

3. Triple-digit temperatures expected in the Texas Panhandle

Extreme heat is forecast for the southern plains today, with temperatures rising well above 100 degrees, according to the National Weather Service.

Heat indices in the Texas Panhandle are expected to exceed 43.3 degrees this afternoon, the agency said.

People who spend time outdoors are advised to wear loose-fitting clothing and keep strenuous outdoor activities to a minimum, the NWS said.

Further north, there is a slight chance of thunderstorms overnight into Friday morning. The storms could continue into Saturday morning, the agency said.

“Hot and humid weather is forecast for Sunday, with highs in the low to high range of 95 degrees Fahrenheit (35 degrees Celsius) and a heat index at or just above 100 degrees Fahrenheit (38 degrees Celsius) in the afternoon,” the NWS said.