Soybeans, Corn Futures Lower Overnight; Ethanol Production Falls, Still At Lofty Levels
(Agriculture.com) – SOYBEANS, GRAINS SLIGHTLY LOWER OVERNIGHT ON FAVORABLE GLOBAL WEATHER
Soybeans and grains were slightly lower in overnight trading after trading higher yesterday on favorable growing weather in South America.
Rain is forecast for the next two weeks in much of northern Brazil, which will aid crop development, according to forecasters. Southern Brazil, however, likely will be dry, which will cause stress in about 10% of the Corn Belt.
The western third of Argentina’s corn and soybean crops also are expected to get rain, which will boost prospects, Commodity Weather Group said.
In Australia, the wheat harvest will get a boost, as drier weather is expected for the next two weeks after a wet spell recently. That should aid recovery, the forecaster said.
Soybean futures for January delivery lost 1½¢ to $9.91 a bushel overnight on the Chicago Board of Trade. Soy meal fell $1.90 to $325.40 a short ton, and soy oil gained 0.34¢ to 34.41¢ a pound.
Corn futures for March delivery fell a penny to $3.52½ a bushel in Chicago.
Chicago wheat for March delivery dropped 3¼¢ to $4.31½ a bushel overnight, and Kansas City futures lost 1¢ to $4.30½ a bushel.
ETHANOL PRODUCTION IN THE U.S. FALLS FROM RECORD, STILL AT RELATIVELY LOFTY LEVELS
Ethanol production fell from a record but still was relatively higher in the week that ended on November 24, the U.S. Energy Information Administration said in a report.
Output of the biofuel averaged 1.066 million barrels a day last week, the second-biggest week ever, down from 1.074 million a week earlier, which was the highest on record, according to the EIA.
Inventories, meanwhile, rose to 22.044 million barrels last week. That’s the highest level since July 14 and up from 21.897 million barrels a week earlier, the agency said.
In other news, exporters reported sales of 263,000 metric tons of soybeans to China in the marketing year that started on September 1, the USDA said in a report yesterday.
Exporters also announced a sale of corn to unknown buyers totaling 101,600 tons, also for delivery in the 2017-2018 marketing year.
STORMS EXPECTED IN PARTS OF SOUTHERN PLAINS LATE WEEKEND, ARKANSAS STILL UNDER FIRE RISK
The weather maps look mostly quiet today, though some storms are brewing in the Southern Plains.
Thunderstorms are expected across parts of Oklahoma and the Texas panhandle starting late this weekend into Monday, according to the National Weather Service. That may help winter wheat in the region.
Drier weather will prevail starting on Tuesday, however, which will elevate the risk of wildfires, the NWS said in a report early Thursday.
Farther east, wildfire risks remain high in parts of Arkansas amid low humidity and gusty winds.
A storm system is expected to move through the state next week, bringing showers and thunderstorms that could help mitigate the risk of fires. That will be followed by colder air by midweek, according to the NWS.
