1. Grain Futures and Soybean Prices Drop Overnight
Soybean and grain futures were lower in overnight trading after yesterday’s data dump from the U.S. Department of Agriculture.
The USDA reported that soybean producers harvested a record 4.435 trillion bushels in the fall.
That’s up from the previous projection of 4.425 billion bushels and last year’s 4.216 billion bushels, government data show.
The agency stated that the corn production reached 15.115 Billion Bushels, surpassing the December outlook of 15.062 Billion and the 14.111 Billion bushels recorded the previous year.
The 2021-2022 marketing years are expected to produce 1.646 billion bushels of wheat. That’s unchanged from the month-earlier forecast but down from 1.828 billion a year earlier.
Due to dry weather in South America, the USDA has lowered its outlook on soybean production in Brazil or Argentina.
Output in Brazil, the world’s largest exporter of the oilseeds, is now seen at 139 million metric tons, down from the December outlook for 144 million, the agency said.
Argentina soybean production is now pegged at 46.5 Million Metres, down from 49.5 Million.
Brazil’s corn production was also reduced to 115 million tonnes from 118million.
Soybean futures for March delivery dropped 12¢ to $13.87 a bushel overnight on the Chicago Board of Trade. Soymeal fell $4.40 to $411.80 a short ton and soy oil lost 0.08¢ to 59.29¢ a pound.
Wheat futures for March delivery fell 4¼¢ to $7.53½ a bushel, while Kansas City futures lost 7¢ to $7.71 a bushel.
Corn futures for March delivery declined 2¾¢ to $5.96¼ a bushel.
2. Ethanol Production drops to a three-month low
According to the Energy Information Administration (EIA), Ethanol output fell to a 3-month low, while inventories continue their climb.
The EIA reported that the average production of biofuel fell to 1.006 million barrels per day in the seven-day period ending on Jan. 7.
That’s down from 1.048 million barrels the previous week and the lowest since the week that ended on Oct. 1.
The Midwest, the largest producing region, saw its output plummet to an average of 947, 000 barrels per day last week, a drop of 989,000 barrels a few weeks earlier. This is also the lowest level since October 1.
East Coast output fell to 11,000 barrels per hour, an average of 14,000 barrels per week earlier. The EIA reported that West Coast production decreased to 8,000 barrels per day from 9,000 barrels.
The average Gulf Coast production fell to 25,000 barrels per day, down from 26,000 barrels the week before.
The long-term gainer was Rocky Mountain production, which rose to an average 15,000 barrels per daily from 11,000 barrels, according to the agency.
In the meantime, Ethanol stockpiles jumped for a second week consecutively to 22.911 millions barrels in seven days that ended Jan. 7.
That’s up from 21.359 million barrels the previous week and the highest level since Feb. 12 of last year, the EIA said in its report.
3. Winter-Storm Warnings issued in the Eastern Dakotas and Minnesota
According to the National Weather Service, winter-storm warnings were issued for parts of the eastern Dakotas and northern Iowa.
The NWS reported that snowfall in eastern North Dakota will range between 6-10 inches starting tonight and lasting through Friday night.
“Travel will be very difficult,” the agency said. “Areas of falling and blowing snow will significantly reduce the visibility.”
Up to 9 inches of fresh snow is expected in southwestern Minnesota and a few northern Iowa counties through tomorrow night.
According to the NWS, Friday night is expected to be dominated by northerly winds that can gust up to 35 mph. This will cause snow blowing and drifting.
In the Southern Plains, meanwhile, a fire-weather watch will be in effect from 10 a.m. to 7 p.m. today, the agency said.
Winds will gust up to 55 mph and will sustain between 25 and 35 mph. The NWS stated that relative humidity may drop to as low as 12 percent in certain parts of Texas.
Source: Successful Farming