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3 Big Things Today, January 25

Soybeans, Grains Little Changed, Weekly Ethanol Production Falls While Stockpiles Rise.

1. Crops Little Changed Overnight on Brazil Weather, China Trade

Soybeans and grains were little changed overnight as bulls focus on hot, dry weather in Brazil, and bears stay pessimistic about the ongoing trade row between the U.S. and China.

About a quarter of northwestern Brazil’s soybean production, a third of its first-crop corn yield, half of cotton, and three fourths of coffee are being threatened by the heat, Commodity Weather Group said in a report.

Some precipitation is expected in parts of central Brazil before a warmer and drier pattern returns next week, the forecaster said.

Still, the bears are focused on the negotiations between the U.S. and China. Trade talks are scheduled for January 30-31 in Washington, but it’s unlikely an agreement will be reached at the meeting, Commerce Secretary Wilbur Ross said.

Negotiators are still “miles and miles” from reaching a deal, he said in a CNBC interview.

Michael Pillsbury, the director for the Center for Chinese Strategy at the Hudson Institute, who reportedly has the ear of President Trump, also said he doesn’t expect negotiators to come to a trade agreement during the talks.

Soybeans for March delivery fell ¼¢ to $9.15¾ a bushel overnight on the Chicago Board of Trade. Soy meal lost 60¢ to $311.70 a short ton, and soy oil gained 0.08¢ to 29.59¢ a pound.

Corn rose a penny to $3.78 a bushel overnight

Wheat for March delivery fell 2½¢ to $5.19 a bushel, while Kansas City futures declined 2¾¢ to $5.08¾ a bushel. 

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Today’s 3 Big Things from Successful Farming magazine is brought to you by Golden Harvest Seeds.

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2. Ethanol Production Falls in Week Through January 18, Inventories Rise, EIA Says

Ethanol output in the U.S. declined from a six-week high, while inventories increased in the seven days that ended on January 18, according to the Energy Information Administration.

Production of the biofuel fell to 1.031 million barrels a day, on average, last week from 1.051 million barrels a day, which was the highest level since November 30, the EIA said in a report.

Midwest producers, by far the largest in the U.S., saw output drop to an average of 957,000 barrels a day, down from 977,000 the previous week.

East Coast output fell to 24,000 barrels a day from 25,000, while Gulf Coast production increased to 16,000 barrels from 15,000. Rocky Mountain output rose to 14,000 barrels a day from 13,000 the previous week, and West Coast production was unchanged at 20,000 barrels, the agency said.

Inventories rose to 23.501 million barrels last week, the highest level since the seven days that ended on December 14.

Stockpiles grew on the East Coast, the Midwest, and the Rocky Mountain region, but declined in the Gulf Coast and on the West Coast, according to the EIA.

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Today’s 3 Big Things from Successful Farming magazine is brought to you by Golden Harvest Seeds.

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3. Wind Chill Warnings, Watches in Effect in Upper Midwest With Values as Low as -45˚F.

Wind chill warnings and watches are in effect for parts of the central Midwest today stretching from central North Dakota south into northern Missouri and east into Ohio.

In parts of eastern Iowa and western Illinois, a warning is in effect as temperatures are forecast to drop as low as -15˚F., pushing wind chills to -35˚F., according to the National Weather Service.

The coldest conditions will be north of Interstate 80, the NWS said in a report early this morning. Wind chills that low can cause frostbite in as little as 15 minutes.

By about 10 a.m. today, wind chills will “improve” to about -20˚F. and by noon they’re not expected to be a danger.

A separate wind chill warning is in effect in northern Minnesota where it’ll be even colder. Wind chills are expected to fall as low as -45˚F. this morning, creating extremely dangerous conditions.

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