1. Overnight trading of Soybeans & Corn is a success
Soybean and corn futures plunged in overnight trading on a mix of technical selling and as Brazil’s harvest begins.
Investors who bet on higher prices or were long the market will likely liquidate their contracts in the coming year.
In Brazil, the world’s largest exporter of soybeans, producers began the harvest this week, Reuters reported, an early start to what’s expected to be a record harvest.
According to the U.S. Department of Agriculture (USDA), South American soybean farmers are expected produce 144 million tonnes of soybeans this season, up from 138 millions a year earlier.
The USDA earlier this month stated that exports have been pegged at 94,000,000 metric tons, an increase of 81.7 million last year.
This compares with the U.S. production at 120.4 million tonnes and expected exports at 55.8 million tons, according government data.
Some rain is expected in parts of Brazil, which may improve soil moisture “a bit,” but west-central and southern areas will remain dry, Donald Keeney, an agricultural meteorologist with Maxar, said in a report.
However, Argentina will see a lot of rain and high temperatures.
“Very limited rains and hot conditions in northern and eastern areas through the weekend will maintain notable stress on corn and soy,” Keeney said.
Soybean futures for November delivery dropped 12¼¢ to $13.56½ a bushel overnight on the Chicago Board of Trade. Soymeal fell $2.40 to $405.80 a short ton, while soy oil declined 0.57¢ to 56.34¢ a pound.
Corn futures for December delivery fell 3½¢ to $6.02 a bushel.
Wheat futures for December delivery rose 2¢ to $7.89¾ a bushel, while Kansas City futures gained 2¢ to $8.26½ a bushel.
2. Ethanol production rises narrowly week-to-week
According to the Energy Information Administration (EIA), Ethanol output rose slightly from week to week while stockpiles fell.
The EIA reported that the average production of biofuel rose to 1.059 Million barrels per day over the week ending Dec. 24.
That’s up from 1.051 million barrels a day, on average, the previous week.
The Midwest, the region with the highest production, saw an average output of 1.001 million barrels per day, up from 991,000,000 barrels a few weeks earlier, according to the agency.
This was the sum of all the gains.
The EIA reported that East Coast production was unchanged at 12,000 barrels per day, while West Coast output remained at an estimated 10,000 barrels.
On average, the Gulf Coast produced 23,000 barrels per hour, down from 24,000 barrels last week.
According to the government, Rocky Mountain production declined to an average 13,000 barrels per days from 14,000 barrels.
The week ended Dec. 24, and Ethanol inventories fell to 20.676 Million Barrels, a decrease of 20.705 Million the previous week.
That’s the lowest level since the week that ended on Dec. 3, the EIA said in its report.
3. Winter Storm Watches – Kansas to Illinois
According to National Weather Service maps and reports, winter storm watches were issued for a large area of the Midwest, including western Kansas and western Illinois.
The NWS reported that a mixture of snow, sleet and freezing rain is expected to begin tomorrow in central Kansas.
The agency stated that snow accumulations will exceed 2 inches and that ice buildup will be between.25 and.50 inches. Forecast winds of 35 mph are possible.
In eastern Iowa, western Illinois, and the Midwest, snowfalls of up to 7 inches are expected by Saturday night. According to the NWS snow will begin Saturday morning, and last throughout the day.
Wind-chill warnings have been issued for the western Minnesota and eastern North Dakota regions.
Wind chills as low as -50°F. According to the agency, wind chills of as low as 50 degrees Fahrenheit are expected to be in the area this morning.
“The dangerously cold wind chills could cause frostbite on exposed skin in as little as 10 minutes,” the NWS said.
Source: Successful Farming