3 Big Things Today, May 12, 2022
1. Soybean Futures Lower in Overnight Trading
Soybean futures were lower in overnight trading as improved planting weather helps farmers trying to get their crops in the ground make up for lost time.
Only some “short-lived showers” are forecast for the central and southeastern Midwest through today, which likely will only cause “minor interrupts” to planting, Commodity Weather Group said in a report.
Showers will lighten in the Dakotas, where it’s been very wet the past few weeks, into the weekend, though other parts of the northern Plains and eastern Canadian Prairies will see widespread rain, the forecaster said.
The northern Plains and eastern Prairies, meanwhile, likely will see some interruptions in planting by next Thursday or Friday, though rains are expected to ease in the 11- to 15-day outlook, CWG said.
About 12% of the U.S. soybean crop was planted at the start of this week, behind the normal pace of 24% for this time of year, the Department of Agriculture said, and 3% had emerged from the ground, down from 4% a week earlier.
Corn planting also was well behind the normal pace as 22% was sown as of Sunday, behind the 50% average, the USDA said. Some 5% of the crop had emerged, trailing the prior five-year average of 15%.
Excessive rain has fallen in much of North Dakota, South Dakota, and northern Nebraska in the past week, according to data from the National Weather Service’s precipitation page.
As much as six times the normal amount of rain fell in the past seven days in eastern Kansas and Oklahoma, much of Missouri, and parts of Arkansas, NWS maps show. Still, drier weather this week likely helped accelerate the pace of planting.
Western Kansas and the Oklahoma and Texas panhandles have seen little or no rain in the past week, the agency said. The dry weather there is underpinning wheat futures.
Soybean futures for July delivery fell 8¾¢ to $15.98 a bushel overnight on the Chicago Board of Trade. Soymeal rose $1 to $398.90 a short ton, while soybean oil futures lost 0.84¢ to 82.61¢ a pound.
Corn futures were down ¼¢ to $7.88¼ a bushel.
Wheat for May delivery lost 5¢ to $11.08 a bushel while Kansas City futures fell 5¾¢ to $11.94½ a bushel.**
2. Ethanol Production Rises to Highest in a Month
Ethanol output rose to the highest level in a month last week while inventories increased for the first time in six weeks, according to data from the Energy Information Administration.
Production of the biofuel rose to an average of 991,000 barrels a day in the week that ended on May 6, the EIA said in a report.
That’s up from 969,000 barrels a week earlier and the most since April 8.
In the Midwest, by far the biggest producing region, production rose to 941,000 barrels a day last week, up from 915,000 barrels a week earlier and the highest for the area since April 1, the agency said.
That was the entirety of the gains, however.
Gulf Coast production was unchanged at 24,000 barrels per day, on average, and West Coast output remained at 9,000 barrels a day for the third straight week.
East Coast production plunged to an average of 5,000 barrels per day, the lowest on record, from 10,000 barrels per day a week earlier, the administration said.
Rocky Mountain output fell to 12,000 barrels a day from 13,000 barrels, the lowest output level since December 31.
Stockpiles, meanwhile, rose for the first time since late March.
Ethanol inventories in the seven days that ended on May 6 increased to 24.14 million barrels from 23.887 million a week earlier. That’s the highest level since April 15, the EIA said in its report.
3. Heat Advisory Issued For Eastern Iowa, Northern Illinois
A heat advisory will take effect today in much of eastern Iowa and northwestern Illinois, according to the National Weather Service.
Heat-index values are expected to climb to about 100°F. for a third consecutive day, the NWS said in a report early this morning.
The advisory will be in effect from 11 a.m. to 9 p.m. local time.
In the southern Plains, meanwhile, red-flag warnings have been issued as extremely dry weather continues.
In western Kansas, winds will gust up to 40 mph today as relative humidity falls as low as 5%, the NWS said.
Winds in the Oklahoma and Texas panhandles will be sustained from 15 to 25 mph with gusts of up to 35 mph, the agency said. Humidity will drop as low as 4% today.