3 Big Things Today, October 24, 2024

1. Soybeans, Corn Higher in Overnight Trading

Soybean and corn futures were higher in overnight trading on continued signs of strong demand for U.S. supplies. 

Exporters reported sales of 130,000 metric tons of soybeans for delivery to China and 259,000 tons of the oilseeds to an unnamed country, all for delivery in the 2024/2025 marketing year that started on Sept. 1, the U.S. Department of Agriculture said yesterday.

Sales of 100,000 metric tons of corn were also reported. 

That follows sales of 359,500 metric tons of corn to Mexico that were announced Tuesday and another large grouping of soybean and corn sales reported on Monday. 

Keeping a lid on prices, however, is continued harvest pressure. 

About 81% of U.S. soybeans were collected at the start of the week, up from 67% seven days earlier, USDA said. 

Sixty-five percent of the corn crop was in the bin as of Sunday versus 47% seven days earlier, the government said. 

Soybean futures for January delivery rose 6¼¢ to $10.11¼ a bushel overnight on the Chicago Board of Trade. Soymeal fell 40¢ to $314.60 a short ton, and soy oil was up 0.87¢ to 44.26¢ a pound. 

Corn futures gained 2¾¢ to $4.21¾ a bushel.

Wheat futures for December delivery rose ½¢ to $5.79 a bushel, and Kansas City futures fell ¼¢ to $5.85¼ a bushel. 

2. Ethanol Production Surges to Two-Month High

Ethanol output jumped to the highest level in two months, while inventories declined week to week, according to data from the Energy Information Administration.

Production of the biofuel increased to an average of 1.081 million barrels a day in the week that ended on Oct. 18, the agency said. 

That’s up from 1.042 million barrels a week earlier and the highest level since the seven days that ended on Aug. 16. 

In the Midwest, by far the biggest producing region, output rose to 1.014 million barrels a day, on average, from 985,000 barrels the previous week, EIA said. 

Gulf Coast production surged to an average of 33,000 barrels a day from 23,000 the week prior. East Coast output increased to 12,000 barrels a day from 10,000 a week earlier. 

That was all the gains as Rocky Mountain production was unchanged for a third straight week at 15,000 barrels a day, and West Coast output declined to 7,000 barrels a day from 10,000 the previous week, the agency said. 

Ethanol inventories in the week through Oct. 18 declined narrowly to 22.223 million barrels, down from 22.275 million in the week prior, EIA said in its report. 

3. Frost advisories issued in northwestern Kansas

Frost advisories have been issued for counties in northwestern Kansas and northeastern Colorado, according to National Weather Service maps. 

Temperatures are forecast to fall into the low 30s overnight into Friday, resulting in some frost formation, the agency said. 

Red flag warnings also have been issued for the same area amid dry conditions. 

Winds will be sustained from 20 to 30 mph and gust up to 50 mph this afternoon, NWS said. Relative humidity will fall as low as 17%. 

“Conditions will be favorable for rapid fire spread,” the agency said. “A combination of strong winds, low relative humidity and warm temperatures can contribute to extreme fire behavior.”