3 Big Things Today, December 10, 2020 – Successful Farming

1. Soybeans and Grains Jump in Overnight Trading

Soybeans, corn, and wheat were higher in overnight trading ahead of today’s World Agricultural Supply and Demand Estimates (WASDE) report that’s due out today.

Soybean stockpiles are pegged at 165 million bushels, down from 190 million a month earlier, according to estimates from Dow Jones. Researcher Allendale said analysts are expecting the U.S. Department of Agriculture to shave 22 million bushels off the November outlook.

Corn inventories are expected to decline modestly from last month’s outlook of 1.702 billion bushels, Allendale said.

Corn futures also got a bump overnight after a much-needed sale to an overseas buyer was reported. Mexico purchased 257,071 metric tons of the grain from the U.S. for delivery in the 2020-2021 marketing year, the USDA said in a report on Wednesday.

Also of interest in the WASDE report will be Brazilian production.

The USDA last month forecast output in Brazil, the world’s largest exporter of soybeans, at 133 million metric tons. Analysts polled by Reuters expect the USDA to forecast production of 131.8 million tons in today’s report.

Dry weather dominated headlines early in the country’s growing season, but recent rains have quelled concern about output in Brazil.

Soybean futures for November delivery surged 10¢ to $11.68½ a bushel overnight on the Chicago Board of Trade. Soymeal added $2.40 to $371.50 a short ton, and soy oil gained 0.43¢ to 38.29¢ a pound.

Corn futures rose 3¢ to $4.26¾ a bushel overnight.

Wheat futures for September delivery jumped 11½¢ to $5.94¾ a bushel, while Kansas City futures gained 10½¢ to $5.61½ a bushel.

(Correction: Three Big Things on Wednesday incorrectly stated the WASDE report was due yesterday. It is scheduled for release today, Thursday, Dec. 10, 2020. Apologies for the error.)

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2. Ethanol Production Surges to Eight-Month High, Stockpiles Also Increase

Ethanol output jumped to an eight-month high and stockpiles increased to their highest level since May, according to the Energy Information Administration.

Production of the biofuel rose to an average of 991,000 barrels a day in the week that ended on Dec. 4, the EIA said in a report.

That’s up from 974,000 barrels a day, on average, the previous week and the highest since the seven days that ended on March 20.

In the Midwest, by far the biggest producing region, output was reported at an average of 941,000 barrels a day, up from 926,000 barrels the previous week.

That’s the highest level for the region since the week that ended on March 13, government data show.

Gulf Coast production also increased, rising to an average of 18,000 barrels a day from 16,000 the previous week.

Rocky Mountain output was unchanged week-to-week at 10,000 barrels a day, on average, and West Coast production remained at 9,000 barrels a day.

East Coast production, meanwhile, declined to an average of 12,000 barrels a day from 13,000 barrels a week earlier, the agency said.

Ethanol stockpiles surged to 22.083 million barrels in the seven days through Dec. 4, up from 21.24 million a week earlier.

That’s the highest level in storage since the week that ended on May 29, the EIA said in its report.

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3. Strong Winds Increase Chances of Fires in Parts of Upper Midwest Thursday

Strong winds and low humidity increase the chances of wildfires this afternoon about where South Dakota, Minnesota, Nebraska, and Iowa meet, according to the National Weather Service.

Winds will gust up to 35 mph this afternoon, which “will lead to high fire danger across the area,” the NWS said in a report early this morning.

Starting tomorrow, there’s a chance of snow through the weekend in the region.

“With the bulk of the precipitation anticipated to the south and east … light snowfall is possible mainly across northeastern Nebraska and northwestern Iowa,” the agency said.

Farther east in southern Michigan, northern Indiana, and northern Ohio, a freezing fog advisory is in effect, the NWS said.

Visibility through about 9 a.m. local time is expected to drop to a mile or less and icy spots will form, especially on bridges and overpasses, the NWS said. Driving conditions are hazardous.

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