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3 Big Things Today, September 12
1. Soybeans, Grains Higher Overnight Ahead of WASDE
Soybeans and grains were higher in overnight trading ahead of today’s World Agricultural Supply and Demand Estimates (WASDE) Report.
Analysts polled by Reuters said they expect the USDA to peg soybean output at 3.577 billion bushels on yield of 47.2 bushels an acre in its report. That’s down from USDA’s August estimate for 3.68 billion bushels and yield of 48.5 bushels an acre.
Corn production is forecast at 13.672 billion bushels on yield of 167.2 bushels an acre, Reuters said. That’s also lower than the government’s August outlook for 13.901 billion bushels on yield of 169.5 bushels an acre.
Scouts on the Pro Farmer Crop Tour estimated national corn yield well below the government’s projections at 163.3 bushels an acre and production at 13.358 billion bushels. Soybean yield was seen at 46.1 bushels an acre with output at 3.497 billion bushels.
Soybean futures for November delivery rose 7¢ to $8.73½ a bushel overnight on the Chicago Board of Trade. Soy meal added $2.10 to $296.80 a short ton, while soybean oil gained 0.07¢ to 28.90¢ a pound.
Corn futures for December delivery rose 1¼¢ to $3.61¼ a bushel.
Wheat for September delivery gained 3¢ to $4.80½ a bushel, while Kansas City futures added 2¢ to $4.00½ a bushel.
2. Ethanol Production Up Slightly Week to Week, Stockpiles Fall to Lowest in Two Months
Ethanol production rose slightly week to week, while stockpiles fell to the lowest level in more than two months, according to the Energy Information Administration.
Output in the seven days that ended on September 6 averaged 1.023 million barrels a day, up from the previous week’s average of 1.013 million barrels a day, the EIA said in a report.
In the Midwest, by far the largest-producing region, output rose to 949,000 barrels a day, on average, from 934,000 barrels the prior week.
That accounted for all of the week’s regional gains as East Coast production declined to an average of 25,000 barrels a day from 26,000 barrels a week earlier, Gulf Coast output dropped to 20,000 barrels a day from 24,000, and Rocky Mountain production fell to 13,000 barrels a day from 14,000.
West Coast output, meanwhile, was unchanged at 16,000 barrels a day, on average, the agency said.
Stockpiles of the biofuel in the seven days that ended on September 6 totaled 22.499 million barrels, the EIA said in its report.
That’s down from 23.801 million barrels the previous week and the lowest level since the seven days that ended on June 21, government data show.
Senator Charles Grassley (R-IA), who has been advocating on behalf of the ethanol and farm industries, said Wednesday that he is frustrated that the ethanol fight has become solely focused on Iowa when several states grow corn and produce ethanol.
“How come this whole thing, discussion with the White House and the EPA and everybody else, just seems to be an Iowa discussion when there’s at least 14 states that are big corn-growing states, and every one of those states, I’ll bet, has ethanol in it,” he said on his weekly conference call, according to the Cedar Rapids Gazette.
3. Strong Storms in Northern Nebraska Leads to Flood Warnings, Watches in Effect Farther East
Strong storms continue to hit northern Nebraska this morning as flash flood warnings are in effect in several counties, according to the National Weather Service.
Heavy rain was reported early this morning in the region, and excessive runoff from the precipitation will cause flooding of creeks, streams, highways, and streets along with other low-lying areas, the NWS said in an earlier report.
As much as 6 inches of rain, locally higher in some areas, have fallen in the past few days, which is causing some rivers to flood.
The Elkhorn River is at 6.5 feet, still below flood stage of 9 feet, but it’s expected to rise to almost 10 feet by Saturday evening.
Flash flood watches are in effect for much of southern Minnesota, the southern half of Wisconsin, and northeastern Iowa this morning, as well.
Heavy rainfall that could come at a rate of 1 to 2 inches an hour is possible through tomorrow morning, which could cause flooding in the regions, the NWS said.