3 Big Things Today, October 18, 2024

Soybean futures higher overnight; ethanol output jumps to highest in a month

1. Soybean futures slightly higher overnight

Soybean futures were modestly higher in overnight trading as planting in Brazil, the world's largest exporter of the oilseeds, remains well behind schedule and as drought spreads in the U.S.

Farmers in the South American country were only 8.2% done with planting as of this week, consultancy AgRural said. That's less than half of the 17% that was in the ground at this point last year. 

Extremely dry weather has plagued producers in growing areas so far this season. 

Still, rain has been falling in some regions this week and more is on the way. Widespread precipitation is forecast for next week and will boost prospects for farmers. 

Related: December corn closes lower for second consecutive week | Friday, October 18, 2024

Brazil's soybean crop was projected at 166 million metric tons by national supply company Conab.

That U.S. Department of Agriculture last week forecast output in the South American country at 169 million metric tons. If realized, that would be up from the 153 million tons produced last year and a record high for Brazil. 

Drought has expanded in much of the Midwest in the week, according to the U.S. Drought Monitor. 

About 53% of a nine-state area that includes Iowa and Illinois, the largest producers of both soybeans and corn, were seeing drought conditions as of Tuesday, the monitor said. That's up from 42% a week earlier and only 3.7% three months ago. 

In Kansas, where hard red winter wheat is being planted or growing, 64% of the state is suffering from drought conditions, up from 57% the previous week and 18% three months earlier, the monitor said. 

Soybean futures for November delivery rose 3¢ to $10.01 a bushel overnight on the Chicago Board of Trade. Soymeal added $3.70 to $321.80 a short ton, and soy oil was down 0.12¢ to 42.47¢ a pound. 

Corn futures rose 1¾¢ to $4.09½ a bushel. 

Wheat futures for December delivery fell 1¼¢ to $5.88¼ a bushel, and Kansas City futures were up ½¢ to $5.96½ a bushel. 

2. Ethanol output rises to highest in a month

Ethanol production rose to the highest level in almost a month and inventories climbed in the seven days that ended on Oct. 11, according to a report from the Energy Information Administration. 

Output increased to an average of 1.042 million barrels a day, up from 1.038 million barrels a week earlier, the agency said. That's the highest since the week that ended on Sept. 13. 

In the Midwest, by far the largest producing region, production rose to an average of 985,000 barrels a day from 979,000 barrels, also the highest level since mid-September, EIA said. 

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

That was all the gains as Rocky Mountain output was unchanged at 15,000 barrels a day. 

East Coast production fell by a thousand barrels to an average of 10,000 barrels a day, and Gulf Coast output declined to 23,000 barrels from 24,000 the previous week, the government said. 

Ethanol stockpiles in the week through Oct. 11 were higher, rising to 22.275 million barrels, up from 22.154 million barrels seven days earlier, EIA said in its report. 

3. Dry weather expected in parts of Illinois

Dry weather is forecast for much of central Illinois today and tonight amid gusty winds and low humidity, according to the National Weather Service. 

Winds will gust up to 30 mph at points this afternoon, the agency said. Relative humidity will fall to around 20%. 

"Breezy winds and low humidity will increase fire danger this afternoon, especially during harvest activities," NWS said. 

Storms are possible in the southern Plains this weekend where it's been extremely dry. 

Showers and thunderstorms may make their way across the Oklahoma and Texas panhandles Saturday through Monday morning, the agency said. 

No severe weather is expected, but heavy rain in the panhandles may lead to flooding, NWS said. 

Read the original article on Successful Farming.