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3 Big Things Today, November 1

Soybeans Lower Overnight, Grains Rise; Ethanol Production Hits Highest in Two Months.

1. Soybeans Slightly Lower, Grains Higher Overnight

Soybean futures were slightly lower overnight, while corn and wheat were modestly higher.

Beans declined on more reminders of the ongoing trade dispute between the U.S. and China after a cargo of soybeans heading to the Asian nation was forced to switch destinations. The ship, called the Star Laura, reportedly was carrying 36,000 metric tons of soybeans from Seattle to Qingdao, but shifted to a Korean port, according to a Reuters report.

At least two other ships have changed course in the past month.

Chinese government data show imports of soybeans from Brazil in September surged 28% year over year. U.S. exports to all countries since the start of the marketing year on September 1, meanwhile, are down 35% from the same period last year, according to the USDA.

Soybeans for November delivery fell 2½¢ to $8.49¼ a bushel overnight on the Chicago Board of Trade. Soy meal futures dropped $1.40 to $305 a short ton, and soy oil fell 0.04¢ to 27.98¢ a pound.

Corn futures added a penny to $3.64¼ a bushel in Chicago.

Wheat for December delivery gained 2¼¢ to $5.02¾ a bushel overnight, while Kansas City futures rose 2½¢ to $4.95¾ a bushel.


2. Ethanol Production Jumps to Highest Level in Almost Two Months

Ethanol production jumped to the highest level in almost two months, while stockpiles plunged in the week that ended on October 26, according to the Energy Information Administration.

Output last week rose to 1.059 million barrels a day, on average, from 1.024 million seven days earlier, the highest since August 31, the EIA said in a report. That’s also up from an average of 1.056 million barrels a day during the same week last year.

Stockpiles, meanwhile, dropped to 22.746 million barrels in the seven days through October 26, the lowest since September 21, the government said. Inventories the prior week totaled 23.897 million barrels, and were at 21.474 million barrels at this time in 2017, according to the EIA.

In other ethanol news, the EPA has sent its proposal for blending volumes in 2019 to the White House for final review. The deadline to issue the final rule is November 30.

The EPA had originally issued a blending mandate of 19.88 billion gallons next year, up 3% from 2018, while conventional ethanol blending was set at 15 million gallons under the original proposal, according to Reuters.

It’s not yet known what levels were suggested under the proposal recently sent to the White House.


3. Storms Causing Flooding in Parts of Western Kentucky, Southern Illinois, Indiana

Storms are hammering parts of western Kentucky, southern Illinois, and southern Indiana this morning as more flood warnings have been issued in the area, according to the National Weather Service.

As much as 3 inches of rain fell in a short amount of time overnight, leaving some areas flooded, the NWS said in a report.

“Minor river flooding will likely occur as runoff from this heavy rain event drains into the larger rivers,” the agency said.

Behind the rain will be strong north winds that will feature gusts of up to 40 mph, mostly across southeastern Missouri, southern Illinois, and southwestern Indiana. The winds should diminish by this afternoon, the NWS said.

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