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3 Big Things Today, October 5
1. Corn, Soybeans Higher Overnight on Rainfall, Strong Bean Demand
Corn and soybeans were a bit higher overnight amid harvest delays and signs of strong demand for soybeans.
Flood watches have been issued for several counties in southern Nebraska, southwestern Iowa, northwestern Missouri, and northeastern Kansas. Rain is expected that might cause streams and rivers to flood low-lying areas.
Precipitation in parts of Minnesota also may cause rivers to rise, but no flooding is expected, the National Weather Service said.
Demand for soybeans has been strong so far in the marketing year that started on September 1. Exporters last week sold almost 3 million metric tons of the oilseeds to overseas buyers, about half to China. The USDA will release its weekly Export Sales Report today.
Corn futures for December delivery rose 1½¢ to $3.49¾ a bushel overnight on the Chicago Board of Trade.
Soybeans for November delivery gained 4¢ to $9.62¼ a bushel overnight. Soy meal futures added $1.40 to $312.40 a short ton, and soy oil rose 0.05¢ to 33.28¢ a pound.
Wheat for December delivery fell ½¢ to $4.41½ a bushel, and Kansas City futures added ¼¢ to $4.36¼ a bushel.
2. Ethanol Production, Stockpiles Rise in Week Through September 29; Export Sales Report on Tap
Ethanol production bumped back above the 1 million-barrel-a-day mark, and stockpiles rose in the last week of September.
Output of the biofuel totaled 1.01 million barrels a day, on average, in the week that ended on September 29, according to the Energy Information Administration.
That’s up from 996,000 barrels a day seven days earlier and marks a rebound back above the million-barrel mark, where it had sat for 13 straight weeks.
Ethanol stockpiles also rose, totaling 21.545 million barrels. That’s up from 20.740 a week earlier and the highest level since August 11, according to the government.
In other news, the USDA’s Export Sales Report is due out this morning. Corn sales are forecast from 500,000 to 700,000 metric tons, soybean sales are pegged from 1 million to 1.5 million, and wheat sales are expected from 300,000 to 500,000 tons, analysts said.
3. Pockets of Heavy Rainfall May Cause Flooding in Several Midwest Counties
Pockets of heavy rain may cause flooding in an area encompassing southeast Nebraska, southwest Iowa, northwest Missouri, and northeast Kansas today, according to the National Weather Service.
The precipitation may cause river and streams to overrun their banks, though for now, it’s just a watch.
In Minnesota, the Mississippi River at Lake City is expected to crest near 13 feet on October 13 due to rainfall north of the area, which is below flood stage. The river isn’t expected to breach its banks, but it will get close in some spots, the NWS said in a report early on Thursday.
Some rain also may fall in parts of Illinois and Indiana today and tomorrow, though any storms will be isolated, according to the NWS.