3 Big Things Today, September 2, 2022

1. Corn, soybean and wheat futures jump overnight

Corn, soybeans and wheat rebounded overnight after corn and wheat hit week-long lows on Thursday. Crop markets are tracking financial market developments as investors watch for US employment data and further interest rate hikes.

The market will also be watching the progress of the corn and soybean harvest as it picks up across the country. Recent crop visits, USDA crop progress reports and other yield checks have offered mixed assessments of crop condition over the past few weeks. Al Kluis of Kluis Commodity Advisors says hot, dry weather reduces the yield potential of corn and soybeans in about 30% of the Corn Belt.

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2. Above average agricultural profit expected in 2022

The USDA’s Economic Research Service released new data on Thursday putting projected net farm income for 2022 at $147.7 billion, a 5.2% increase from 2021.

Much of the projected growth is driven by an increase in cash receipts, which is expected to increase 21.2% from 2021 to $525.3 billion in 2022.

While overall cash receipts are expected to increase in 2022, lower direct government payments and higher production spending are expected to moderate revenue growth, the report said. Direct government payments are expected to fall from $12.8 billion, or 49.7%, in 2021 to $13.0 billion in 2022.

3. Flood advisory for northwest Oklahoma Friday

Minor flooding from excessive rainfall is expected in part of northeast Oklahoma Friday morning. National Weather Service Doppler radar indicates the thunderstorms produced heavy rain. Rainfall totals between 2 and 4 inches are expected.

Thursday’s Drought Watch Report indicates that much of the affected area, including Creek, Okmulgee, Tulsa and Wagoner counties, is currently experiencing severe D2 drought or worse. Livestock in the region are stressed, dryland crops are severely reduced and pasture growth is stunted.

Nationwide, 224.5 million acres of crops are experiencing drought, the National Integrated Drought Information System (NIDIS) said Thursday. More than 26 million beef cattle are experiencing drought in 646 U.S. counties.

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