3 Large Issues In the present day, July 14, 2023

1. Grains, Soybeans Higher in Overnight Trading

Wheat and corn futures surged in overnight trading on concerns about the Black Sea Grain Initiative, the agreement keeping agricultural products flowing out of Ukraine, that’s set to expire on Monday. 

European Commission and United Nations leaders are reportedly seeking solutions to extend the deal under which ships are allowed to sail unencumbered from ports in Ukraine. 

The deal, which is approaching a year old after negotiators from Russia, Ukraine, Turkey and the UN hammered out an agreement last July, will expire on Monday if it’s not extended. 

Russian officials have repeatedly said there will be no extension of the deal because Moscow feels western countries and the United Nations aren’t living up to their end of the bargain. 

Antonio Guterres, the secretary-general of the UN, sent a letter to Russian President Vladimir Putin this week saying he will attempt to “remove hurdles affecting financial transactions through the Russian Agricultural Bank, a major concern expressed by the Russian Federation” if the Black Sea Grain Initiative were allowed to continue. 

Moscow has said it wants its agricultural bank Rosselkhozbank reconnected to SWIFT, the payment system that allows for international transactions, after it was cut off in June 2022. Russian forces began attacking Ukraine in February of last year. 

Putin told the state-run TASS news agency that he hadn’t seen the letter from Guterres. 

Corn futures for December delivery jumped 10¢ to $5.10 ½ a bushel overnight on the Chicago Board of Trade. 

Wheat futures for September delivery gained 12 ¾¢ to $6.52 ½ a bushel while Kansas City futures were up 11 1/4¢ to $8.17 ¼ a bushel. 

Soybeans for November delivery gained 9¢ to $13.78 ¾ a bushel. Soymeal added $2.20 to $402.10 a short ton and soy oil gained 0.54¢ to 61.81¢ a pound. 

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2. Corn Sales For Export Rise Week-to-Week, USDA Says

Export sales of corn improved week-to-week while bean and wheat assessments declined, according to data from the USDA. 

Corn sales to overseas buyers in the week through July 6 were reported at 468,400 metric tons, up 86% from the previous week and “noticeably” from the prior four-week average, the agency said in a report. 

Mexico was the big buyer at 273,300 metric tons, followed by Canada at 111,800 tons and Japan at 52,300 tons. Honduras bought 52,000 tons from U.S. supplies and Colombia purchased 33,800 tons. 

The total would’ve been higher but an unnamed country canceled orders for 32,900 tons. 

Exports for the week were down 30% to 492,700 metric tons, the USDA said. 

Soybean sales for offshore delivery, meanwhile, dropped to 80,600 metric tons, down 57% from the previous week and 76% from the average.

The Netherlands was in for 66,900 metric tons, Spain took 61,800 tons, Mexico bought 33,300 tons, Vietnam was in for 19,600 tons and Japan purchased 17,000 tons. An unknown buyer nixed shipments of 125,800 metric tons. 

Exports for the week, however, rose 27% to 338,600 tons. 

Wheat sales fell 2.5% to 395,700 metric tons last week, the government said. 

Mexico purchased 395,700 metric tons of U.S. wheat, Indonesia bought 63,000 tons, Japan took 58,700 tons, Taiwan was in for 57,500 tons and Thailand purchased 55,000 tons. An unnamed country canceled cargos of 123,000 metric tons and the Philippines nixed orders for 33,200 tons. 

Exports in the week through July 6 jumped 26% to 384,900 metric tons, the USDA said in its report. 

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3. Extreme Heat Expected in Oklahoma as Indexes Hit 115

Hot weather will persist in Oklahoma and Texas today as heat indexes hit as high as 115 degrees Fahrenheit, according to the National Weather Service. 

An excessive heat warning has been issued for parts of south-central Oklahoma while heat advisories will take effect today and tonight in the eastern half of the state and almost all of Texas, NWS maps show. 

In extreme eastern Oklahoma and northwestern Arkansas, meanwhile, flood watches and warnings are in effect as thunderstorms slam the area. 

As much as 2 inches of rain have already fallen and another 3 inches are possible in the region. Flash flooding has already started in some areas and is imminent in others, the NWS said. 

Further north in eastern Iowa and northern Illinois, thunderstorms are possible this evening and tonight. Gusty winds, large hail and heavy rains are likely with the system expected to move through the area.

Showers and thunderstorms are possible each day from Saturday through Thursday, the agency said.