3 Big Things Today, November 15, 2024

1. Soybean Futures Higher in Overnight Trading

Soybean futures were higher amid a weakening dollar after the greenback had risen to its highest level against a basket of global currencies in more than a year. 

The greenback was down 0.2% overnight, a slight reprieve after hitting the highest since October 2023, according to Marketwatch data. 

A weaker dollar makes U.S. goods more attractive to overseas buyers seeking dollar-denominated items including agricultural products. A stronger dollar does the opposite. 

The U.S. currency has been on the rise after Donald Trump was elected president on promises of imposing tariffs on imported goods. That’s considered inflationary and likely would start a trade war with several trading partners including China and Mexico, two of the largest importers of U.S. agricultural goods. 

Futures also were higher on mixed weather forecasts for parts of South America. 

Showers in central Brazil will be limited the next two weeks and moisture levels in west-central growing areas of the country “may slip a bit” for the rest of November, Commodity Weather Group said in a note to clients. 

Still, some rain may reach southern areas where it’s been dry, the forecaster said. 

Soybean futures for January delivery jumped 9¢ to $9.96½ a bushel overnight on the Chicago Board of Trade. Soymeal was unchanged at $287 a short ton, and soy oil surged 1.55¢ to 45.99¢ a pound. 

Corn futures for December delivery added 1½¢ to $4.19½ a bushel.

Wheat futures for December delivery rose 3¼¢ to $5.33½ a bushel, and Kansas City futures gained 2¾¢ to $5.35¾ a bushel. 

2. Ethanol Production Jumps to Record High

Ethanol output rose to a record high in the seven days that ended on Nov. 8, according to data from the Energy Information Administration. 

Production jumped to an average of 1.113 million barrels a day, the agency said. 

That’s up from 1.105 million barrels a week earlier and the highest since recordkeeping began in 2010, EIA said in a report yesterday. 

In the Midwest, by far the biggest producing region, output increased to 1.05 million barrels a day, the highest since Oct. 29, 2021. That marks the region’s third-highest production level of all time. 

Gulf Coast output increased to an average of 28,000 barrels a day from 26,000 the week prior, the government said. 

Rocky Mountain production was unchanged at 15,000 barrels a day, and West Coast output was steady at 10,000 barrels. 

The East Coast region was the lone decliner, falling to an average of 11,000 barrels a day from 12,000 the previous week, EIA said. 

Ethanol inventories in the week through Nov. 8 totaled 22.039 million barrels. That’s up from 22.02 million a week earlier, the agency said in its report. 

3. Freeze Warnings in Effect in Oklahoma, Arkansas

Freeze warnings and frost advisories are in effect this morning in parts of northeastern Oklahoma and northwestern Arkansas, according to National Weather Service maps. 

Temperatures overnight fell into the upper 20s in counties in Arkansas, the agency said. 

For counties under frost advisories, temperatures were expected to reach as low as 35°F, NWS said. 

Storms are expected to move into the north-central Plains early Monday, pushing through eastern South Dakota and Iowa and into Minnesota, the agency said. 

Strong winds, cold air, and precipitation are all forecast with the storm, though it’s not yet known exactly how much rain or snow will fall, NWS said.