1. Wheat futures jump in overnight trading
Wheat futures rose overnight on declining growing conditions in Kansas and ongoing concerns about tensions between Russia and Ukraine.
The hard red winter wheat crop in Kansas was rated 30% good or excellent through Sunday, down from 33% earlier in the month, according to the US Department of Agriculture.
The percentage that was rated poor or very poor rose from 25% to 31%, the USDA said in a report.
Surface soil moisture was 22% adequate and 1% excess and subsoil moisture was 28% adequate this week.
As January began, topsoil moisture was rated 26% adequate and 2% excess and subsoil moisture was 34% adequate and 1% excess, the agency said.
Most of southern and central Kansas haven’t seen much rain in the past 30 days, according to the National Weather Service’s rainfall page. The Oklahoma and Texas panhandles have also been dry.
Tensions between Russia and Ukraine, two of the world’s biggest wheat exporters, continue to rise after Moscow criticized the United States for putting troops on high alert amid fears of war.
The Pentagon has reportedly put 8,500 US troops on alert in case Russia invades Ukraine. Talks are ongoing but have yet to bear fruit, according to media reports.
According to reports, around 100,000 Russian soldiers have gathered at the border with Ukraine.
Russia is expected to export 35 million metric tons of wheat in the 2021-2022 marketing year, USDA data shows. Ukraine is forecast to export 24.2 million metric tons of wheat this year, the USDA said.
Wheat for March delivery rose 11¢ to $8.11½ a bushel overnight on the Chicago Stock Exchange, while Kansas City futures rose 8½¢ to $8.26½ a bushel.
Soybean futures for March delivery fell 3¢ to $14 a bushel overnight. Soymeal fell $3.40 to $390.50 a short ton, and soybean oil futures gained 0.43¢ to 62.4¢ a pound.
Corn futures for March delivery fell ½¢ to $6.20½ a bushel.
2. Weekly corn and soybean export inspections fall
Corn and soybean inspections for overseas delivery fell in the week ending Jan. 20, while wheat assessments improved, according to the USDA.
Corn inspections totaled 1.12 million metric tons, up from 1.24 million tons the previous week, the agency said in a report. That is also down from the 1.4m tonnes assessed during the same week last year.
Soybean tests for export were reported at 1.3 million metric tons.
That is down from the 1.73 million tonnes inspected a week earlier and the 2.1 million tonnes assessed at the same point in 2021, the government said.
Wheat inspections last week totaled 400,973 metric tons, up from 384,291 tons the previous week and down from 571,677 tons examined in the same week a year earlier.
Since the start of the marketing year on Sept. 1, the USDA has inspected 16.4 million metric tons of corn for offshore delivery, up from 18.9 million tons during the same time period a year ago.
Soybean inspections since early September are at 34.8 million metric tons, well below the 45.6 million tons examined during the same period last year.
Wheat assessments since the start of the grain marketing year on June 1 now stand at 13.2 million metric tons, compared to 16.2 million tons inspected at this time in 2021, the USDA in your report.
3. Winter storm warnings issued for parts of western Kansas
Winter storm warnings and winter weather advisories have been issued for much of eastern Colorado and western Kansas, according to the National Weather Service.
Up to 7 inches of snow is expected in parts of western Kansas and some areas could see more, the NWS said in a report early this morning.
A winter storm warning is in effect for several western Kansas counties until 6 p.m. Central Time.
“A narrow band of heavy snowfall, with snowfall rates of 1 to 2 inches per hour, is expected to develop within the highest possible snowfall warning area,” the agency said. “While there is some uncertainty, heavier snow accumulations are possible a little further southeast of the warning area.”
Meanwhile, in the northern US, wind chill advisories and watches are in effect as the cold snap continues.
Values were expected to drop to -40°F. in parts of Minnesota this morning, the NWS said. A second wind chill warning will go into effect tonight and will last through tomorrow morning.
“Dangerously cold chills could cause frostbite on exposed skin in as little as 10 minutes,” the agency said.
George is Digismak’s reported cum editor with 13 years of experience in Journalism