1. Grain and Soybean Futures Drop Overnight
As rain in Argentina is expected, soybean and corn futures fell overnight trading.
Rain fell in parts South American countries and will continue through next week’s first half, Commodity Weather Group reported in a report.
The forecaster stated that any heat will be limited to northern Argentina.
An estimated 1 to 3 inches of rain – more in some areas – likely will eliminate any remaining moisture deficits in 40% of the country, CWG said.
Despite the fact that drought conditions persist in Brazil at 25% and Paraguay at 70%, showers are expected next week.
According to Commodity Weather Group, temperatures in Paraguay and southern Brazil are expected to reach triple digits. This will increase crop stress until the rains arrive next week.
Overnight trading saw wheat futures fall as investors who were long or bet against higher prices, book profits and sell contracts to lower their positions.
Although prices had been rising due to the drought and cold conditions in the U.S. Southern Plains region, technical selling took place during the overnight session.
Tensions between Russia and Ukraine – two of the world’s largest exporters of the grain – also are underpinning wheat prices.
Soybean futures for March delivery fell 7½¢ to $14.18¼ a bushel overnight on the Chicago Board of Trade. Soymeal lost $4.30 to $396.50 a short ton and soybean oil futures added 0.25¢ to 63.13¢ a pound.
Corn futures for March delivery fell 3¢ to $6.08 a bushel.
Wheat for March delivery lost 6½¢ to $7.83¾ a bushel overnight, while Kansas City futures fell 4½¢ to $7.92 a bushel.
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2. Three-Week Record for Ethanol Production
According to Energy Information Administration, Ethanol output shot up to a three-week peak in the seven days ended Jan. 14. Stockpiles also soared to the highest level in 11 month.
Production of the biofuel increased to an average of 1.053 million barrels a day from 1.006 million barrels the previous week, the EIA said in a report.
That’s the highest level since the week that ended on December 24.
The Midwest is the largest producing region. It produced an average of 994,000 barrels per day. This is up from 947,000 barrels a few weeks earlier and also a record three-week high.
According to the agency, West Coast production rose by an average of 9,000 barrels per day last week, compared with 8,000 barrels.
The Gulf Coast output was stable week-to–week at 25,000 barrels per hour, while East Coast production was steady at an average 11,000 barrels each day.
According to the government, Rocky Mountain production decreased by 14,000 barrels per hour, compared with 15,000 barrels during the previous week.
Meanwhile, Ethanol stockpiles jumped to 23.592million barrels in the week that ended January 14.
That’s up from 22.911 million barrels a week earlier and the highest since the seven days that ended on February 12, the EIA said in its report.
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3. Winter Weather Continues to Persist in Most of the Central U.S.
According to the National Weather Service (NWS), winter-weather advisories have been issued for most of the western Dakotas. This is because snow and ice are falling.
According to the NWS, snow accumulations are expected at a depth of about 1 inch, while ice will cover surfaces.
“A light coating of ice will form on roads and bridges and make travel hazardous,” the agency said.
Wind-chill advisories remain in effect in large parts of Minnesota, western Wisconsin, as well as almost all of Iowa, today.
Values are expected to fall as low as -35°F. According to the NWS, this morning was sunny in central Iowa. Frostbite could occur within 10 minutes on skin that is exposed.
In north-central Oklahoma, meanwhile, a wind-chill advisory is in effect this morning as wind chills overnight dropped as low as -8°F., the NWS said.
Source: Successful Farming
