1. Grains and Soybeans Higher in Overnight Trading

Recent trading sessions have shown an uptick in grain and soybean futures, fueled by the U.S. Department of Agriculture’s unexpected reduction in domestic stockpile forecasts.

The agency has significantly lowered corn inventories for both the current and upcoming marketing years. Current year stockpiles, projected to finish on August 31, are now estimated at 1.34 billion bushels. This marks a decrease from the June outlook of 1.365 billion and falls short of analysts’ expectations of 1.353 billion bushels.

For the 2025-2026 marketing year, expectations for ending stocks have also been curtailed, now pegged at 1.66 billion bushels, down from earlier projections of 1.75 billion.

In terms of soybeans, current inventories on August 31 are projected to remain unchanged at 350 million bushels, although this is below the 358 million bushel estimate by analysts. However, the forecast for the end of the next marketing year sees stocks increasing to 310 million bushels, up from 295 million.

Wheat stock forecasts for the end of the 2025-2026 marketing year have also been revised, now expected at 890 million bushels, slightly lower than the 898 million forecasted in June.

December corn futures traded up by 2.75 cents, reaching $4.15 ½ per bushel. In more gain, September wheat increased by 3.75 cents to reach $5.48 ¾ per bushel, and Kansas City futures rose 5.75 cents to $5.30. Soybean futures for November delivery climbed by 4.5 cents to hit $10.11 ¾, while soymeal slipped \strong{30 cents to $283.30 a short ton.

2. USDA Lowers Outlook for Global Corn Inventories

In a surprising move, the USDA has reduced its forecast for global corn stocks for the 2025-2026 marketing year, which begins on September 1.

The updated forecast estimates global corn inventories will be 272.08 million metric tons, lower than June’s estimate of 275.24 million tons and the 277.46 million tons expected in recent surveys.

For soybeans, stocks are now projected to be 126.07 million metric tons, a slight increase from the previous month’s 125.3 million but still trailing behind trade estimates.

Wheat inventories are anticipated at 261.52 million metric tons, down from prior expectations of 262.76 million tons.

3. Storms Forecast for Parts of North Dakota

The National Weather Service has reported potential thunderstorms in parts of north-central and northwestern North Dakota, with the likelihood for severe weather remaining low.

This morning, isolated storms could develop into the afternoon, presenting risks of hail and wind gusts reaching up to 70 mph.

Looking to central Kansas, storms are expected to produce severe weather conditions from tomorrow through Saturday. The region will experience strong to severe thunderstorms along with locally heavy rainfall.

Additionally, central Kansas could see temperatures rise into triple digits on Tuesday and Wednesday, creating a challenging weather situation.