3 Big Things Today, October 25, 2024

1. Soybean, Grain Futures Lower in Overnight Trading

Soybeans and grains were lower overnight on favorable weather in parts of South America. 

Rainfall in southern Argentina has “eradicated” most of the dryness in the region, Commodity Weather Group said in a note to clients. 

Dry areas have been reduced to less than 10% of corn and wheat areas, the forecaster said. 

Another round of precipitation is expected in northern Brazil, giving a boost to crop prospects, CWG said. Still, the week-two outlook is drier. 

“Recent drier spots in southern Brazil corn (and) soy linger, but occasional showers limit concerns,” Commodity Weather Group said. 

Keeping prices from falling further, however, are signs of strong demand for U.S. supplies. 

Soybean sales to overseas buyers in the seven days that ended on Oct. 17 rose 26% from the previous week and 47% from the prior four-week average to 2.15 million metric tons, the U.S. Department of Agriculture said. 

Corn sales jumped to 3.6 million metric tons, up 62% from the week prior and noticeably from the average, the agency said.

Wheat export sales were reported at 532,900 metric tons, up 6% from a week earlier and 38% from the average for this time of year. 

Soybean futures for January delivery lost 8¼¢ to $9.96¾ a bushel overnight on the Chicago Board of Trade. Soymeal fell $2 to $308.40 a short ton, and soy oil was down 0.42¢ to 43.91¢ a pound. 

Corn futures fell 3¾¢ to $4.17¾ a bushel.

Wheat futures for December delivery dropped 7¾¢ to $5.73¾ a bushel, and Kansas City futures lost 7¼¢ to $5.79¾ a bushel. 

2. Red meat output increased in September, USDA Says

Red meat production in September rose year over year as both beef and pork output saw gains, according to data from the Ag Department.

Production of red meat in the U.S. last month totaled 4.45 billion pounds, up 2% from the same month a year earlier, the agency said in a monthly report. 

Beef output was reported at 2.2 billion pounds, up 3%, USDA said. 

Cattle slaughter, however, fell 1% to 2.57 million head, and average live weight was up 44 pounds to 1,406 pounds. 

Pork production gained 2% year over year to 2.23 billion pounds, the government said. 

Hog slaughter was up narrowly to 10.5 million head, and average live weight was up 4 pounds to 285 pounds, USDA said. 

Veal output plunged on an annual basis, dropping 16% to 3.1 million pounds. Lamb and mutton production gained 4% to 10.6 million pounds. 

Red meat production in the first nine months of 2024 was reported at 40.8 billion pounds, up 1% from the same timeframe a year earlier, USDA said in its report. 

3. Freeze, frost alerts issued in Kansas, Colorado

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

Freeze warnings are in effect as temperatures overnight fell to about 27° Fahrenheit overnight, the agency said. 

Temperatures in surrounding areas dropped to around 34°, leading to the frost advisories, NWS said. 

The freeze warning will again take effect tonight into Saturday morning. 

Cold weather also is forecast for the southern Plains where hard red winter wheat is growing as frost is possible in the Oklahoma panhandle overnight, the agency said. 

“Cold air is expected to arrive tonight and bring some areas in the (northern Oklahoma panhandle) down to the mid-30s,” NWS said. “Moisture at ground level is expected to be favorable for frost formation.”