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3 Big Things Today, July 9, 2020
1. Soybeans, Grains Higher Overnight on Weather Concerns
Soybeans and grains were higher in overnight trading as oppressively hot weather continues in parts of the Midwest.
Temperatures in the triple digits are expected again in parts of Oklahoma and Texas and heat index values are forecast to be above 100°F. in parts of Ohio this afternoon.
Heat advisories have been issued in those areas and anybody working outside is advised to be cautious.
The hot weather is coming at a bad time as much of the corn crop is in the critical silking stage. About 10% of U.S. corn was silking as of Sunday, behind the normal 16% for this time of year, according to the U.S. Department of Agriculture.
About 2% of the soybean crop was setting pods at the start of the week, just behind the prior average of 4%, the USDA said.
Soybean futures for December delivery rose 5¼¢ to $9.02½ a bushel overnight on the Chicago Board of Trade. Soymeal added $2.20 to $304 a short ton and soy oil lost 0.1¢ to 29.11¢ a pound.
Corn futures for December delivery gained 4¢ to $3.58¼ a bushel overnight.
Wheat rose 1¾¢ to $5.18¼ a bushel while Kansas City futures added 3¢ to $4.59¾ a bushel.**
2. Ethanol Production Hits Fresh Three-Month High and Stockpiles Rise
Ethanol production hit a fresh three-month high and stockpiles increased for the first week in 12 in the seven days that ended on July 3, according to the Energy Information Administration.
Output of the biofuel jumped to 914,000 barrels a day, on average, last week, the EIA said in a report.
That’s up from an average of 900,000 barrels a week before and the largest level since the week that ended on March 20, government data show.
In the Midwest, by far the biggest producing region, output was reported at an average of 876,000 barrels a day. That’s up from 862,000 barrels the previous week.
That was the entirety of the gains as East Coast production was unchanged at an average of 12,000 barrels a day and Gulf Coast and Rocky Mountain output both were unchanged at 9,000 barrels a day.
West Coast production declined to 8,000 barrels a day, on average, from 9,000 barrels the previous week, the EIA said.
Stockpiles, meanwhile, rose for the first time in three months to 20.620 million barrels.
That’s up from 20.164 million barrels and the first increase since the seven days that ended on April 17, according to the government.
3. Another Round of Extremely Hot Weather Expected in Parts of Corn Belt
Extremely hot weather continues in parts of the Corn Belt today as temperatures in Oklahoma are expected to hit the triple digits again, according to the National Weather Service.
Temperatures in central Oklahoma are forecast to be around 100°F. with 54% humidity today, according to the National Weather Service.
Heat advisories are in effect for dozens of counties in central Oklahoma and northern Texas.
Hot weather also is expected in much of Ohio and eastern Michigan today. A heat advisory is in effect starting at 11 a.m. as heat values are expected to hit around 104°F. this afternoon, the NWS said.
In Kansas, meanwhile, a flash flood warning is in effect for the east-central parts of the state today as thunderstorms roll through the area, the agency said. In northwestern counties, some severe weather is expected as storms produce large hail and damaging winds.