3 Big Things Today, November 7, 2024

1. Grain, soybean futures higher overnight

Grain and soybean futures were higher in overnight trading amid ongoing demand for U.S. agricultural products.

Overseas buyers have committed to purchase 26.3 million metric tons of soybeans since the start of the 2024-2025 marketing year on Sept. 1, up 13% from the same timeframe last year, according to data from the U.S. Department of Agriculture.

Corn sales since the beginning of September are now at 25.8 million tons, up 41% year over year.

Wheat sales since the start of the grain’s marketing year on June 1 now stand at 13.6 million tons, a 19% increase from the same period in 2023, USDA said. 

Exporters sold 124,000 metric tons of corn to an unnamed country for delivery in the 2024-2025 marketing year, the department said in a statement on Tuesday. 

USDA on Monday reported sales of 150,000 tons of corn to Mexico, 120,000 tons of corn to an unknown destination and 132,000 tons of soybeans to an unnamed buyer. On Friday sales to China, India, Mexico and other countries were reported. 

Corn futures for December delivery rose 1¢ to $4.27 1/4 a bushel overnight on the Chicago Board of Trade.

Wheat futures for December delivery added 4¢ to $5.77 1/4 a bushel, and Kansas City futures gained 2 1/4¢ to $5.76 1/4 a bushel. 

Soybean futures for January delivery rose 7 3/4¢ to $10.11 1/2 a bushel. Soymeal was up $2.60 to $301 a short ton, and soy oil fell 0.21¢ to 46.13¢ a pound. 

2. Ethanol production surges to three-month high

Ethanol output jumped to the highest level in more than three months last week and inventories gained, according to data from the Energy Information Administration. 

Production rose to an average of 1.105 million barrels a day in the week that ended on Nov. 1, the agency said in a report. 

That’s up from 1.082 million barrels a day the previous week and the highest level since July 26. 

In the Midwest, the largest producing region by far, output surged to an average of 1.042 million barrels from 1.023 million a week earlier, EIA said. 

Gulf Coast production rose to 26,000 barrels from 23,000 the week prior, and Rocky Mountain output was up by 1,000 barrels to an average of 15,000 a day. 

That was the entirety of the gains for the week as East Coast production was unchanged at 12,000 barrels per day, on average, and West Coast output was steady at 10,000 barrels, the government said. 

Ethanol inventories in the seven days that ended on Nov. 1 totaled 22.02 million barrels, up from 21.771 million the previous week, EIA said in its report. 

3. Winter storms forecast for southern Plains

Winter storm warnings and watches and weather advisories have been issued for counties in the southern Plains where hard-red winter wheat is growing, according to National Weather Service maps. 

Counties in extreme western Kansas and the Oklahoma and Texas panhandles, the eastern half of Colorado and almost all of New Mexico are facing winter weather through Saturday, the agency said. 

As much as 2 feet of snow are expected in Las Animas County in Colorado, which sits on the northern border of New Mexico and touches the Oklahoma panhandle, NWS said. 

Intense winds are also forecast and will gust up to 35 mph. 

In the Texas panhandle, up to an inch of snow and ice are projected today and tonight along with winds forecast to gust as strong as 35 mph. 

“Roads and especially bridges and overpasses will become slick and hazardous,” the agency said. 

In central Oklahoma and north Texas, meanwhile, flood watches are in effect amid excessive rain that’s expected to fall in the area. 

Several thunderstorms will roll through the area today bringing 1 to 4 inches of rain and leading to flooding, NWS said. 

“Excessive runoff may result in flooding of rivers, creeks, streams and other low-lying and flood-prone locations,” the agency said.