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3 Big Things Today, January 13, 2022

Soybeans, Grains Lower Overnight; Weekly Ethanol Production Plunges.

1. Soybean, Grain Futures Lower Overnight

Soybean and grain futures were lower in overnight trading after yesterday’s data dump from the U.S. Department of Agriculture.

Producers harvested a record 4.435 billion bushels of soybeans in the fall, the USDA said.

That’s up from the previous projection of 4.425 billion bushels and last year’s 4.216 billion bushels, government data show.

Corn production totaled 15.115 billion bushels, topping the December outlook for 15.062 billion and the 14.111 billion bushels collected the previous year, the agency said.

Wheat output in the 2021-2022 marketing year is projected at 1.646 billion bushels. That’s unchanged from the month-earlier forecast but down from 1.828 billion a year earlier.

The USDA lowered its outlook for soybean production in Brazil and Argentina amid dry weather in the South American countries.

Output in Brazil, the world’s largest exporter of the oilseeds, is now seen at 139 million metric tons, down from the December outlook for 144 million, the agency said.

Argentina soybean production is pegged at 46.5 million metric tons, down from the previous forecast for 49.5 million.

Corn production in Brazil also was lowered to 115 million metric tons from 118 million previously.

Soybean futures for March delivery dropped 12¢ to $13.87 a bushel overnight on the Chicago Board of Trade. Soymeal fell $4.40 to $411.80 a short ton and soy oil lost 0.08¢ to 59.29¢ a pound.

Wheat futures for March delivery fell 4¼¢ to $7.53½ a bushel, while Kansas City futures lost 7¢ to $7.71 a bushel.

Corn futures for March delivery declined 2¾¢ to $5.96¼ a bushel.

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2. Ethanol Production Drops to Three-Month Low

Ethanol output dropped to a three-month low while inventories continue to climb, according to the Energy Information Administration.

Production of the biofuel fell to an average of 1.006 million barrels in the seven days that ended on Jan. 7, the EIA said in a report.

That’s down from 1.048 million barrels the previous week and the lowest since the week that ended on Oct. 1.

In the Midwest, by far the biggest producing region, output plunged to an average of 947,000 barrels a day last week, down from 989,000 barrels a week earlier, also the lowest since the beginning of October.

East Coast output dropped to 11,000 barrels a day, on average, from 14,000 barrels a week earlier. West Coast production fell to an average of 8,000 barrels a day from 9,000 barrels, the EIA said.

Gulf Coast production declined to 25,000 barrels a day, on average, from 26,000 barrels the previous week.

Rocky Mountain production was the long gainer, rising to an average of 15,000 barrels a day from 11,000 barrels, the agency said.

Ethanol stockpiles, meanwhile, jumped for a second consecutive week to 22.911 million barrels in the seven days through Jan. 7.

That’s up from 21.359 million barrels the previous week and the highest level since Feb. 12 of last year, the EIA said in its report.

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3. Winter-Storm Warnings Issued in Eastern Dakotas and Minnesota

Winter-storm warnings have been issued for parts of the eastern Dakotas into Minnesota and northern Iowa, according to the National Weather Service.

In eastern North Dakota, snowfall will range from 6 to 10 inches starting this evening and lasting through Friday night, the NWS said in a report early this morning.

“Travel will be very difficult,” the agency said. “Areas of falling and blowing snow will significantly reduce the visibility.”

In southwestern Minnesota and a few counties in northwestern Iowa, up to 9 inches of snow is expected through tomorrow night.

Northerly winds with gusts from 25 to 35 mph are expected Friday evening that will cause blowing and drifting snow, the NWS said.

In the Southern Plains, meanwhile, a fire-weather watch will be in effect from 10 a.m.  to 7 p.m. today, the agency said.

Winds will be sustained from 25 to 35 mph with gusts of up to 55 mph. Relative humidity is expected to fall as low as 12% in parts of the Texas panhandle, the NWS said.

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