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3 Big Things Today, June 10, 2021

Soybeans, Corn Higher Overnight; Ethanol Production Jumps to 15-Month High.

1. Soybeans and Corn Rise in Overnight Trading

Soybeans and corn futures were higher overnight while wheat was lower ahead of today’s World Agricultural Supply and Demand Estimates (WASDE) report.

Analysts are expecting a slight increase in soybean stockpiles, though inventories were already pegged by the U.S. Department of Agriculture in May to be historically low at 120 million bushels.

Estimates for corn ending stockpiles, meanwhile, may decline, giving prices a boost ahead of today’s report.

The weekly export sales report from the USDA also will be released today, along with crop production and world agricultural production reports.

From a fundamental standpoint, not much has changed. Hot weather is expected in large chunks of the northern and southern U.S. into the weekend and drought still reigns in much of North Dakota, the biggest grower of spring wheat.

Dry weather and crop stress will continue in the north-central and west-central Corn Belt, said Donald Keeney, an agricultural meteorologist with Maxar.

Little or no rain has fallen in much of the central Midwest in the past seven days, according to the National Weather Service.

Some precipitation fell earlier this week in parts of northern Minnesota and Wisconsin, with light scattered rains in southern Illinois and Indiana, Keeney said in a report. Still, the forecast is unchanged with rains favoring the southeastern Corn Belt through Friday, he said.

Soybean futures for July delivery rose 6¢ to $15.68¾ a bushel overnight on the Chicago Board of Trade. Soymeal gained 60¢ to $387 a short ton, while soy oil added 0.41¢ to 72¢ a pound.

Corn futures for July delivery added 3¾¢ to $6.94½ a bushel.

Wheat futures for July delivery lost 7¾¢ to $6.74½ a bushel, while Kansas City futures fell 2¾¢ to $6.33 a bushel overnight.

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2. Ethanol Production Jumps to 15-Month High as Midwest Output Hits a Record

Ethanol output rose to the highest level in 15 months last week while stockpiles also climbed, according to the Energy Information Administration.

Production of the biofuel jumped to an average of 1.067 million barrels a day in the week that ended on June 4, the EIA said in a report.

That’s up from 1.034 million barrels, on average, per day the previous week and the highest since the seven days that ended on Feb. 28, 2020, government data show.

In the Midwest, by far the biggest producing region, output reached 1.021 million barrels a day, the highest on record, the agency said.

Last week’s total was up from 985,000 barrels a week earlier and the first time in 15 months that production averaged more than a million barrels a day.

That accounted for the entirety of the week’s gains.

East Coast output averaged 11,000 barrels a day, unchanged week-to-week.

Gulf Coast production fell to an average of 17,000 barrels a day from 18,000 a week earlier, the agency said.

Rocky Mountain output dropped to 8,000 barrels a day from 10,000 barrels a week earlier, and West Coast production declined to an average of 9,000 barrels a day, on average, from 10,000 barrels the previous week, the EIA said in its report.

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3. Heat Advisories Issued in Northern and Southern Plains

Weather maps are lit up this morning as hot, dry weather hits part of the northern Plains and Midwest and the southern Plains simultaneously.

A heat advisory has been issued for much of South Dakota and parts of North Dakota, Minnesota, and Nebraska, according to the National Weather Service.

Heat indexes are forecast to be around 101°F. in parts of central South Dakota today, the NWS said in a report.

The heat advisory is in effect from noon until 8 p.m.

In parts of central Oklahoma, heat index values are pegged from 100°F. to 110°F. today and tomorrow, the agency said.

Those working outside are advised to reduce strenuous activity when temperatures are at their highest.

In much of Kansas, the biggest producer of wheat in the U.S., heat indexes are expected to range from 98°F. to 103°F. this afternoon.

A thunderstorm or two may rumble through northern Kansas late tonight with damaging winds and large hail the main threats associated with the system, the NWS said.  

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