3 Big Things Today, November 2
1. Soybeans, Corn Rise Overnight on Dry Weather in Brazil, Further Delays in U.S.
Soybeans continued their march higher overnight after solid gains yesterday on threats of drier weather in Brazil and rainfall in the eastern U.S. Midwest that may further delay the harvest.
Northern Brazil is expected to be drier this week, which makes rainfall forecast for next week criticial, said Commodity Weather Group in a morning report. Showers tapered off “abruptly” in corn- and soybean-growing areas of northern Brazil, the forecaster said.
They’re expected to return next week, but the lack of moisture this week makes precipitation important for production.
In the U.S., rainfall is forecast for much of the eastern Corn Belt for the remainder of the week, according to the National Weather Service. Thunderstorms are forecast for much of Indiana today and tonight, and again during the weekend, the NWS said.
Soybean futures for January delivery rose 2½¢ to $9.93¾ a bushel overnight on the Chicago Board of Trade. Soy meal added $1.50 to $315.10 a short ton, and soy oil fell 0.21¢ to 34.69¢ a pound.
Corn futures for December delivery rose 1¢ to $3.49¼ a bushel in Chicago.
Wheat for December delivery gained 3½¢ to $4.21½ a bushel in Chicago. Kansas City futures added 4¢ to $4.19¾ a bushel.
2. Ethanol Production Rises to Highest Level Since First Week of September, Stockpiles Rise
Ethanol production rose to the highest level in almost two months in the seven days that ended on October 27, a good sign for corn demand.
Output of the biofuel jumped to an average of 1.056 million barrels a day last week, the highest since the seven days that ended on September 1, according to the Energy Information Administration. The total was up from the prior week’s 1.039 million barrels, EIA data show.
Stockpiles of ethanol also rose, jumping to 21.474 million barrels, according to the government. That’s up from 21.034 million barrels the prior week and the first weekly increase since the end of September.
Rising output may mean increased demand for U.S. corn by processors, though the increase in stockpiles may limit purchases.
In other news, total soybean crush demand in September totaled 145.4 million bushels, slightly above a forecasts for 145 million and up 5% from the same month a year ago.
3. Rainfall Expected in Eastern Midwest, Snowstorms Forecast in North Dakota
More rainfall is on the way today and tonight in parts of the eastern Midwest, according to National Weather Service maps.
That may further slow the harvest at least through the weekend, the NWS said in an early Thursday forecast.
Farther west, a cold front is expected to move through parts of Iowa and Illinois, which will sweep away dense fog that’s reportedly formed overnight.
Thunderstorms are possible in the region starting Sunday afternoon and evening, mainly along and just east of the Mississippi River, though it’s still too early to determine whether the storms will be severe, the NWS said.
In the Dakotas, snow is forecasts for much of western North Dakota starting tomorrow morning. The snow will accumulate all day and night Friday and continue Saturday north of Highway 200, while a wintry mix is expected in the south.
Snowfall is expected to top out at about 6 inches in northern counties, while 1 to 3 inches are forecast in southern parts of North Dakota, the NWS said.