3 Big Things Today, February 17, 2022
1. Soybeans, Wheat Higher in Overnight Trading
Soybean futures rose in overnight trading amid strong global demand for U.S. supplies and wheat was up amid the ongoing Russia-Ukraine crisis.
Exporters reported sales of 132,000 metric tons of soybeans to China for delivery in the 2022-2023 marketing year, the U.S. Department of Agriculture said in a report.
On Tuesday, the USDA said exporters reported sales of 101,000 metric tons of soybeans to Mexico, about half for delivery in the current marketing year and the rest for delivery in the 2022-2023 year.
The agency will release its weekly export sales report today.
In Brazil, some rain is expected but likely not enough to make a difference for some crops.
Showers forecast next week into the 11- to 15-day period will begin to trim crop stress, Commodity Weather Group said in a report. Still, precipitation likely will gradually become less frequent in northern Brazil after this week.
In Argentina, rains this week landed in about two-thirds of growing areas, but hot weather returns today, the forecaster said.
Wheat futures were higher overnight, though they saw only modest gains.
Russia has said it will respond to U.S. proposals offered in a bid to prevent an attack on Ukraine.
Moscow had said that some of the 100,000 troops it has on the border with Ukraine have pulled back and returned to their bases, but global leaders have expressed skepticism.
NATO said Russia continues to build its forces near the border. Russia said it wants guarantees that Ukraine won’t be allowed to join NATO, a proposal that was rejected. Still, talks are ongoing in attempts to prevent war.
Russia is the world’s biggest exporter of wheat and Ukraine ranks third.
Soybean futures for May delivery rose 11¢ to $16.02¼ a bushel overnight on the Chicago Board of Trade. Soymeal was up $5.30 to $452.60 a short ton and soybean oil futures lost 0.09¢ to 66.95¢ a pound.
Corn futures for May delivery rose ¼¢ to $6.46 a bushel.
Wheat for May delivery added 3¢ to $7.89¼ a bushel, while Kansas City futures gained 4¼¢ to $8.16¼ a bushel.**
2. Ethanol Production Rises in Week Through February 11
Ethanol output jumped in the week that ended on February 11 while inventories also increased, according to the Energy Information Administration.
Production of the biofuel rose to an average of 1.009 million barrels a day last week, up from 994,000 barrels the previous week, the EIA said in a report.
In the Midwest, by far the biggest producing region, output rose to an average of 949,000 barrels a day.
That’s up from 939,000 barrels a day a week earlier, the agency said.
Gulf Coast output surged to an average of 25,000 barrels a day from 24,000 barrels a week prior. That was the entirety of the gains.
East Coast production was unchanged week-to-week at 12,000 barrels a day, the EIA said.
Rocky Mountain output declined to 14,000 barrels a day, on average, from 15,000 barrels a week earlier.
West Coast production was down to an average of 8,000 barrels a day from 9,000 barrels the previous week, the agency said.
Ethanol stockpiles also were up for the week, rising to 25.483 million barrels in the seven days through February 11.
That’s up from 24.799 million barrels a day the previous week, the EIA said in its report.
3. Winter Weather Expected From Oklahoma to Maine
Winter storms are moving through a wide chunk of land stretching from northern Oklahoma all the way northeast to Maine, according to National Weather Service maps.
In eastern Kansas, a winter-storm warning is in effect until 6 p.m. this evening as up to 6 inches of snow and a glaze of ice are expected, the NWS said in a report early this morning.
Winds will gust as high as 40 mph.
“Blowing and drifting snow could significantly reduce visibility, especially on Thursday. The hazardous wintry conditions will have the greatest impact on the Thursday morning commute,” the NWS said. “The combination of gusty winds and the weight of snow and ice could bring down tree branches and lead to scattered power outages.”
It’s much of the same in eastern Missouri and western Illinois.
Moderate to heavy snow fell overnight and is expected to continue through early afternoon, the agency said.
Up to 8 inches of snow is forecast along with a glaze of ice. Winds will gust up to 40 mph.
Flood warnings have been issued for much of northern Indiana and southern Michigan today due to snowmelt and as much as 2 inches of rain that fell overnight.
“In addition, these rises (in river levels) could also shift ice in the rivers that could lead to ice jams,” the NWS said.