3 Big Things Today, February 8
1. Soybeans Higher, Corn Lower Overnight Ahead of WASDE
Soybeans were higher in overnight trading while corn was lower as investors square their positions ahead of tomorrow’s World Agricultural Supply and Demand Estimates (WASDE) report.
Analyst said they expect the U.S. Department of Agriculture to lower its estimate of soybean stockpiles from last month amid strong consumption.
The USDA’s corn inventories forecast also is expected to decline slightly month over month, but analysts have said they expect the government to raise its outlook for Brazilian production. Investors including fund managers and hedgers alike also are looking forward to today’s weekly ethanol production and stockpiles reports.
Soybean futures for March delivery rose 8¢to $10.50¾ a bushel overnight on the Chicago Board of Trade. Soy meal gained $2.50 to $338.60 a short ton, and soy oil added 0.17¢ to 34.47¢ a pound.
Corn lost a penny to $3.67½ a bushel in Chicago.
Wheat futures for March delivery fell 1¢ to $4.29¾ a bushel. Kansas City futures rose ¾¢ to $4.40¼ a bushel.
2. Commodity Weather Group Pegs Brazilian Soybean Output at 106 Million Tons
Brazilian growers will produce a record 106 million metric tons of soybeans this year, Commodity Weather Group said in a special statement.
“A combination of favorable soil moisture and good vegetative health” has given the country’s crop a boost, CWG said. Brazil is the world’s largest exporter of soybeans and the second-biggest producer behind the U.S.
Yields are forecast to be records in the country’s largest-producing states as long as weather conditions continue to favor development.
The U.S. Department of Agriculture last month pegged Brazil soybean production at 104 million metric tons. CWG’s estimate is also about 3 million tons above a forecast by Conab, Brazil’s agricultural consultancy.
CWG said there’s potential for another 500,000 to 1 million tons to be added if the weather improves from already-favorable conditions. The only risk to the downside is a dry patch in northeastern Brazil, but that accounts for only about 10% of the Soy Belt, the weather forecaster said.
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3. Winter Weather Advisory Issued For Several States From South Dakota to Ohio
A winter weather advisory stretching in a narrow band from the Black Hills all the way east to central Ohio is in effect this morning, according to the National Weather Service.
In extreme northwestern Nebraska, as much as 5 inches of snow is falling. Periods of light snow are expected through much of the morning, the NWS said in a report early Wednesday.
In central Iowa, the snow may hold off for a few hours this morning before starting again this afternoon, which could lead to the advisory being canceled in the area, the agency said. Snowfall should end by about noon.
Further east into Indiana and Ohio, the advisory will last until at least 8 p.m. local time. Up to 3 inches of snow are expected, and roads are expected to be slippery, according to the NWS.
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