3 Big Things Today, October 3, 2019
1. Grains, Beans Little Changed in Overnight Trading
Grains and soybeans were little changed overnight amid uncertainty about trade talks scheduled for next week between the U.S. and China.
China bought another 464,000 metric tons of soybeans from U.S. supplies, the USDA’s Foreign Agricultural Service said in a report yesterday.
The Asian nation has made good on promises to buy more agricultural products as a sign of good will ahead of next week’s negotiations. The USDA reported sales of beans to China for three days straight from September 25 through September 27 and several other sales the previous week.
Still, market-watchers are skeptical that a trade deal will be signed as negotiations have dragged on for more than 15 months without a resolution.
Next week’s talks will be the 13th round of high-level negotiations and will feature U.S. Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He.
Corn futures for December delivery fell ½¢ to $3.87¼ a bushel overnight on the Chicago Board of Trade.
Wheat for September delivery lost 1¢ to $4.88 a bushel, while Kansas City futures declined 3¢ to $4.02¾ a bushel.
Soybean futures for November delivery dropped 1¢ to $9.12¾ a bushel overnight. Soy meal lost 30¢ to $305.30 a short ton, while soybean oil gained 0.01¢ to 29.22¢ a pound.
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2. Ethanol Production Rises Weekly, Still Below 1 Million-Barrel Average
Ethanol production rose week to week but was still well below the 1 million-barrel-a-day average, while inventories rebounded from the previous week’s decline.
Output in the seven days that ended on September 27 averaged 958,000 barrels a day, according to the Energy Information Administraiton. That’s up from the previous week’s 943,000 barrels a day, which was the lowest level in more than three years.
In the Midwest, by far the biggest production area, output averaged 887,000 barrels a day last week, up from 877,000 the previous week, the EIA said in a report.
Gulf Coast production rose to 22,000 barrels a day, on average, from 16,000 a week earlier, and Rocky Mountain output increased to 14,000 barrels from 10,000.
On the East Coast, output declined week to week to 20,000 barrels a day, on average, from 24,000 the previous week, the agency said.
West Coast production was unchanged at 15,000 barrels a day.
Stockpiles, meanwhile, increased to 23.219 million barrels on September 27 from 22.5 million seven days earlier, the EIA said.
In other news, the USDA is scheduled to release its weekly Export Sales Report this morning. Analysts are expecting corn sales from 400,000 to 800,000 metric tons, soybean sales from 900,000 to 1.4 million tons, and wheat sales from 200,000 to 600,000 tons, according to researcher Allendale.
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3. Freeze Warnings in Effect For Eastern Nebraska, South Dakota as Temperatures Drop to Mid-20˚F.
Freeze warnings and frost advisories are in effect in much of western Nebraska and western South Dakota this morning, according to the National Weather Service.
Temperatures fell to as low as the mid-20˚F. overnight due to clearing skies and light winds, the NWS said in a report early this morning. The freeze warning is in effect until 10 a.m. CDT.
In western South Dakota, temperatures overnight reached 27˚F., which can damage plants.
Only 8% of Nebraska corn was harvested at the start of the week, while in South Dakota none had been collected. Six percent of Nebraska soybeans were in the bin, while only 1% was harvested in South Dakota, according to the USDA.
Farther east, more flooding is expected in parts of eastern Iowa and western Illinois due to recent rainfall, the NWS said.
While some rivers are on the rise, there’s limited risk of severe weather in the next seven days, the agency said in its report this morning.