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3 Big Things Today, June 9, 2022

Corn and soybeans down overnight; ethanol output drops as stockpiles jump

1. Corn and soybeans down overnight

Corn and soybeans were down in overnight trading after July soybeans recorded double-digit gains and reached a new contract high during trade on Wednesday.

Ukrainian grain exports almost halved in the first seven days of June compared to the same period in 2021 to 252,000 tonnes, the agriculture ministry's data showed on Thursday.

The Kremlin said on Thursday that no agreement had been reached with Turkey on exporting Ukrainian grain shipments across the Black Sea.

Traders will have their eye on the USDA World Agriculture Supply and Demand Estimates (WASDE) and Crop Production Reports set to be released Friday. Trade estimates for the total weekly USDA export sales report are 200,000 to 900,000 metric tons for corn, and 300,000 to 1,200,000 metric tons for soybeans, says Al Kluis of Kluis Commodities.

“Will the USDA make another early season adjustment to production that will catch traders off guard? The yield reduction for corn in the May report was a surprise. Will we see an adjustment to that number based on crop progress reports?” asks Kluis.

July corn was down overnight at $7.62 with a trading range of 6¢.

July soybeans were down to $17.36 with a trading range of 13¢.

Wednesday’s livestock futures closed mixed. June lean hogs closed down 57¢ at $107.85. June live cattle closed up $3.10 at $136.82. August feeder cattle closed up $3.20 at $175.65.

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2. Ethanol output drops, stockpiles jump

Ethanol output dropped in the seven days through June 3, but remains above the 1 million-barrel-per day mark for the third consecutive week, while inventories rose, according to the Energy Information Administration (EIA).

Production of the biofuel dropped to an average of 1.039 million barrels a day last week, the EIA said. That’s down from 1.071 million barrels a week earlier, the agency said in a report.

In the Midwest, by far the biggest producing region, output plummeted to an average of 985,000 barrels a day from 1.011 million barrels a week earlier.

In the Rocky Mountain region production was unchanged at 15,000 barrels a day for the third straight week, the EIA said.

East Coast output was steady at 12,000 barrels a day for the fourth straight week.

Gulf Coast production plunged week-to-week, falling to an average of 19,000 barrels per day from 23,000 barrels a week earlier, the agency said.

West Coast output was unchanged with an average production of 9,000 barrels a day.

Ethanol stockpiles, meanwhile, jumped to 23.636 million barrels in the week through June 3. That’s up from 22.961 million barrels a week earlier and the highest stocks since the seven days that ended on May 20, the EIA said in its report.


3. Dense fog in southern Wisconsin

A dense fog advisory is in effect Thursday morning for many southern Wisconsin counties, and three counties in northern Illinois, says the National Weather Service. Visibilities may be reduced to a quarter mile or less.

“The dense fog is expected to continue through about 8 am before lifting. Morning commuters can expect rapidly changing and poor visibilities at times. Remember to turn on your low-beam headlights and keep a safe distance between you and the car in front of you,” the NWS said in a report early this morning.

In northeast Minnesota, meanwhile, dry conditions and breezy winds will lead to near-critical fire weather conditions today, the NWS warns.

“Northwest winds of 7 to 13 mph with gusts of 15 to 20 mph are forecast and minimum relative humidity values of 20 to 30% are expected. Together, these conditions could lead to the rapid spread of fires. Check burning restrictions and fire danger before burning,” the NWS says.


 

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