3 Big Things Today, December 19, 2024

1. Wheat Futures Decline in Overnight Trading

Wheat futures were lower in overnight trading amid favorable weather in parts of Australia. 

Rainfall will be limited in the next 10 days, allowing farmers to get back into fields and continue harvesting their wheat, said Don Keeney, an agricultural meteorologist with Maxar. 

Rainfall will favor parts of Queensland and Victoria into the weekend, the forecaster said. 

Precipitation fell in parts of the U.S. Delta region where soft red winter wheat is overwintering. Rains in northern growing areas likely improved crop prospects. 

Global wheat production in the 2024/2025 marketing year is now forecast by the U.S. Department of Agriculture at around 793 million metric tons, up slightly from 791.2 million a year earlier. 

Russian output, however, is expected to plunge year over year amid unfavorable weather throughout much of the growing season. Production is now forecast at 81.5 million metric tons, which would be down from 91.5 million tons last year, USDA data shows. 

Wheat futures for March delivery lost 9¼¢ to $5.32 a bushel, while Kansas City futures fell 6½¢ to $5.42¼ a bushel. 

Corn futures for March delivery dropped 1¢ to $4.36¼ a bushel. 

Soybean futures for January delivery fell ¾¢ to $9.52½ a bushel overnight on the Chicago Board of Trade. Soymeal lost 60¢ to $285.50 a short ton and soybean oil was up 0.44¢ to 40.37¢ a pound. 

2. Ethanol Production Surges to Highest in Three Weeks

Ethanol output jumped to a three-week high in the seven days that ended on Dec. 13, according to the Energy Information Administration.

Production rose to an average of 1.103 million barrels a day last week, the agency said. 

That’s up from 1.078 million barrels the previous week and the highest output since Nov. 22. 

In the Midwest, by far the biggest producing region, production jumped to an average of 1.045 million barrels from 1.015 million the week prior, EIA said. That was also the highest level in three weeks. 

West Coast production increased to 10,000 barrels a day from 9,000 barrels the previous week.

East Coast output was unchanged week to week at 12,000 barrels a day, on average, and Rocky Mountain production was steady at 14,000 barrels, the government said. 

The Gulf Coast was the only decliner for the week, falling to an average of 23,000 barrels a day from 29,000 barrels. 

Ethanol inventories declined narrowly, falling to 22.636 million barrels from 22.648 million a week earlier. That’s the lowest level for stocks since Nov. 15, EIA said in its report. 

3. Winter Storms Expected in the Northern Midwest

Winter storm warnings and advisories have been issued along a wide stretch of the northern Midwest from western North Dakota east into Michigan, according to National Weather Service maps. 

As much as 7 inches of snow are forecast for central Minnesota today and tonight, making travel extremely difficult, the agency said. 

“Strong winds will also cause blowing snow and potentially reduced visibilities, especially across western and southwestern Minnesota,” NWS said. 

In Wisconsin, heavy snow with accumulations of 7–10 inches are expected starting tomorrow morning. Higher amounts are forecast closer to Lake Michigan where the lake will enhance the amount of snow falling.

“Lesser snowfall amounts will occur over north-central Wisconsin,” the agency said.