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3 Big Things Today, November 3, 2022

Grain Futures Lower in Overnight Trading; Ethanol Production Rises Week-to-Week

1. Grains Continue to Fall After Resumption of Ukraine Deal

Wheat and corn futures continued their descent after resumption of the agreement allowing ships to move agricultural products out of Ukraine.

Russia agreed to resume participation in the so-called Black Sea Grain Initiative after negotiations with Turkey.

Around 9.52 million metric tons of grain and other ag products were shipped from the time the agreement was implemented on Aug. 1 through Oct. 30, according to data from the United Nations.

Russia over the weekend suspended participation in the deal after attacks on ships in its Black Sea fleet, saying it could no longer guarantee the safety of civilian vessels.

After talks between Russian President Vladimir Putin and Turkish President Recep Tayyip Erdogan, the agreement was back in place, though somewhat tentatively. Discussions with officials from the UN also helped spur resumption of the agreement, according to media reports.

Putin said yesterday that Russia reserves the right to again exit the agreement, or only allow ships sailing from Ukraine to head to Turkish ports.

No vessels were schedule to leave Ukrainian ports on Wednesday, the United Nations said, and it's unclear whether ships will again sail today.

Wheat futures for December delivery dropped 14 1/4¢ to $8.31 ¾ a bushel overnight on the Chicago Board of Trade, while Kansas City futures declined 10 3/4¢ to $9.29 ½ a bushel.

Corn for December delivery lost 5 1/4¢ to $6.81 ¾ a bushel.

Soybean futures for January delivery fell 14 1/2¢ to $14.39 ½ a bushel. Soymeal dropped $4 to $420.50 a short ton, while soybean oil lost 0.61¢ to 75¢ a pound.

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2. Ethanol Production Jumps to Near Three-Month High

Ethanol output rose to the highest level in almost three months while inventories declined, according to data from the Energy Information Administration.

Production averaged 1.04 million barrels a day in the week that ended on Oct. 28, the EIA said in a report. That's up from 1.033 million barrels a day the previous week and the highest level since July 29.

In the Midwest, by far the largest producing region, output increased to 981,000 barrels per day from 974,000 barrels, the agency said. That's also the highest since late July.

Gulf Coast production rose to 25,000 barrels a day, up from 23, 000 barrels a week earlier. That marks the highest output level since the week that ended on Sept. 9, the EIA said.

East Coast output was unchanged week-to-week at 12,000 barrels a day, Rocky Mountain production remained at 15,000 barrels a day for a third consecutive week, and West Coast output stayed at 8,000 barrels a day, the agency said.

Ethanol inventories, meanwhile, declined to 22.232 million barrels in the week through Oct. 28.

That's down from 22,291 million barrels the previous week, the EIA said in its report.

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3. Storms Forecast For Parts of the Southern Plains, Eastern Midwest

Thunderstorms are expected in parts of the southern Plains tonight, with some storms becoming severe, according to the National Weather Service.

The storms are forecast to fire up after 10 p.m. in southwestern Kansas, the NWS said in a report early this morning.

"Marginally severe hail" about the size of quarters and wind gusts of up to 60 miles an hour are expected.

Temperatures in the region will drop Friday with rain and snow in the forecast, the agency said. Warm weather, however, will return next week.

Further east, rain and storms are forecast in parts of southern Kansas and Missouri overnight. More widespread showers are expected tomorrow.

"Damaging wind gusts up to 60 miles per hour and hail up to the size of quarters are the primary hazards," the NWS said. Winds will gust from 30 to 45 miles an hour late Friday into Saturday.

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