3 Big Things Today, March 9
1. Soybeans, Grains Lower in Overnight Trading Ahead of WASDE Report
Soybeans and grains were lower in overnight trading ahead of a major crop report due out at noon in Washington, D.C.
The U.S. Department of Agriculture is expected to raise its expectations for global carryout in its monthly World Agricultural Supply and Demand Estimates (WASDE) report today. It’s also expected to increase its projection for Brazilian corn production, according to surveys.
Researcher INTL FCStone earlier this week raised its estimate for Brazilian corn production to 109.1 million metric tons, up almost 5 million tons from a prior outlook, according to Reuters.
Soybean futures for May delivery fell 5½¢ to $10.16¼ a bushel overnight on the Chicago Board of Trade. Soy meal lost $1.30 to $329.80 a short ton, and soy oil declined 0.30¢ to 33.24¢ a pound.
Corn futures for May delivery lost 1¼¢ to $3.71 a bushel in Chicago.
Wheat futures for May delivery fell 1½¢ to $4.45½ a bushel overnight. Kansas City futures declined 2¢ to $4.64 a bushel.
2. USDA Expected to Raise Outlook For Global Corn, Soybean Stockpiles
The U.S. Department of Agriculture is expected to raise its outlook for both global corn and soybean stockpiles.
World carryout of corn is likely to be pegged by the USDA at about 219 million metric tons, up from 217.6 million a month ago, according to analysts. The agency’s U.S. inventories estimate is likely to be unchanged at 2.32 billion bushels.
Brazilian production will likely be estimated at about 88 million tons, up from 86.5 million last month, while output in Argentina will probably be unchanged.
Soybean stockpiles globally will be projected at just north of 81 million metric tons, up from 80.4 million last month, analysts said. The USDA’s domestic inventories outlook is expected to decline to 414 million bushels from 420 million in February.
The agency’s estimate for production in Brazil will probably be raised to 106 million metric tons from 104 million a month ago. Output in Argentina is estimated to be little changed from February at about 55.5 million tons, according to industry projections.
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3. Dry Weather Remains in Parts of Midwest; North Expected to See Dangerous Wind Chills
The red-flag warnings for much of the Midwest and Southern Plains are gone this morning after several fires broke out yesterday.
There’s still a small patch of land, encompassing about 18 counties along the borders of Colorado, Nebraska, and Kansas, that are in a fire warning, according to the National Weather Service.
In North Dakota and Minnesota, along the Canadian border, temperatures and wind chills are expected to reach dangerous levels tonight. Wind chills are pegged as low as -40˚F. overnight, the NWS said in a report early Thursday.
“Dangerous wind chill values will persist into Friday morning with an improvement in conditions as the day progresses,” the agency said. “Wind chill values will dip into the -15˚F. to -30˚F. range again Friday night into Saturday morning.”
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