3 Big Things Today, December 18, 2024

1. Soybean Futures Drop in Overnight Trading

Soybean futures plunged overnight as expectations build for a bumper crop from Brazil. 

The South American country, the world’s largest exporter of the oilseeds, is expected to produce 169 million metric tons of soybeans in the 2024/2025 marketing year, the U.S. Department of Agriculture forecast last week. 

That would be a record high and up from 153 million metric tons a year earlier. 

Rainfall is expected to return to northern Brazil in the next two weeks, keeping moisture levels “stable” in the area, Commodity Weather Group said. 

Wetness is southern Brazil and Paraguay likely will ease, increasing yield prospects, the forecaster said. 

The National Soybean Processors Association said in a report yesterday that November soybean crush dropped in November, but that was from a record high the previous month, Reuters reported. It was still the largest crush on record for the month of November.

Soybean futures for January delivery dropped 10¾¢ to $9.68 a bushel overnight on the Chicago Board of Trade. Soymeal lost $2.80 to $290.80 a short ton and soybean oil was down 0.82¢ to 40.13¢ a pound. 

Corn futures for March delivery rose 1¢ to $4.44½ a bushel. 

Wheat futures for March delivery gained 1¾¢ to $5.46¾ a bushel, while Kansas City futures added 1¾¢ to $5.54¼ a bushel. 

2. Ethanol Industry Celebrates Year-Round E15 Provision

The ethanol industry is celebrating a provision in the House of Representative’s stopgap funding bill that allows year-round sales of E15.

Renewable Fuels Association President Geoff Cooper said the organization is “very pleased” the provision was included in the bill.

“This language would finally remove an outdated, red-tap regulatory barrier, and we remain hopeful that the continuing resolution will move swiftly through Congress and to the president’s desk for a signature,” he said. 

E15, which is gasoline blended with up to 15% ethanol, is selling at about a 9% discount to E10, which saves about 26¢ a gallon, RFA said. 

Allowing sales of E15 will benefit farmers, retailers and consumers, Cooper said. 

“We thank the many bipartisan ethanol supporters in the Senate who have worked tirelessly on the issue over the past several years, and we look forward to them quickly taking up and passing the (continuing resolution),” he said. 

3. Windy, Wintry Weather Forecast for the Dakotas

Intense winds are expected in parts of South Dakota today, while winter weather is forecast for much of North Dakota, according to National Weather Service maps.

Winds in South Dakota are expected to be sustained from 40 to 50 mph and gust up to 55 mph, the agency said. 

“High winds may move loose debris, damage property, and cause power outages,” NWS said. 

In North Dakota, meanwhile, winter weather advisories have been issued for the southwestern quarter of the state while winter storm watches are in effect for the rest. 

Freezing rain is expected in southwestern North Dakota along with blowing snow, the agency said. About 2 inches of snow are forecast for the area along with winds gusting up to 55 mph. 

In eastern North Dakota, heavy snow, and blowing snow are possible, NWS said. There’s a 60% chance the state will see at least 6 inches of snow. 

“Widespread blowing snow could significantly reduce visibility,” the agency said.