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3 Big Things Today, October 12

Soybeans Rise, Corn Little Changed Overnight; USDA Likely to Raise Yield Estimates in WASDE.

1. Soybeans Rise, Corn Little Changed Ahead of Today’s WASDE Report

Soybeans were slightly higher while corn was little changed overnight as investors look ahead to today’s World Agricultural Supply and Demand Estimates (WASDE) report.

The WASDE report is scheduled for noon in Washington, and consensus is that the USDA will raise its forecasts for yield and production from month-ago estimates.

Still, some investors believe the USDA will surprise traders and issue a more bullish report. Demand for oilseeds from the U.S. has been strong as of late, so some believe increased usage will outpace gains in production, analysts said.

Soybean futures for November delivery rose 3¢ to $9.68¼ a bushel overnight on the Chicago Board of Trade. Soy meal added 50¢ to $315.40 a short ton, and soy oil increased 0.17¢ to 33.32¢ a pound.

Corn futures for December delivery rose ¼¢ to $3.46¼ a bushel overnight.

Wheat for December delivery added 1½¢ to $4.34½ a bushel in Chicago. Kansas City gained 1½¢ to $4.29¾ a bushel.

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2. USDA Likely to Raise Corn, Bean Production Forecasts, Lower Stockpiles on Demand

The USDA will likely raise its production and yield estimates for corn and soybeans, though very slightly, in today’s WASDE report, according to analyst projections.

The report is due out at noon in Washington.

The USDA will peg corn production from 14.192 billion to 14.204 billion bushels on yields of 170 to 170.1 bushels an acre in today’s report, according to various analyst projections.

That’s up from a prior government forecast for 14.184 billion bushels on yields of 169.8 bushels an acre.

Corn inventories, however, at the end of the marketing year on August 31, 2018, will total 2.272 billion bushels, down from the prior outlook for 2.335 billion bushels, possibly on increased demand, according to analysts.

Soybean output will likely be estimated from 4.441 billion bushels to 4.447 billion bushels with yields at 50 bushels an acre, according to trade forecasts.

That’s up from the government’s September forecast for 4.431 billion bushels on yields of 49.9 bushels an acre.

Stockpiles will be pegged at 450 million bushels in today’s WASDE report, down from the prior outlook for 475 million bushels, analysts said. The inventories estimate likely will decline amid increased demand.  

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3. Flood Warning Remains in Effect For Parts of Iowa as Midwest Rain Expected This Weekend

Isolated flood warnings are in effect for parts of northwestern Iowa this morning while the threat remains for nonsevere thunderstorms in other parts of the state, according to the National Weather Service.

Farther south, in parts of Missouri, areas of fog are expected to prevail this morning. Starting tomorrow, scattered to “numerous” thunderstorms are expected in several northern counties over the weekend, the NWS said in a report early Thursday.

Central Indiana may see some thunderstorms starting Saturday night into Sunday, but a severe weather outbreak isn’t expected, the agency said. Lightning, briefly heavy rain, and gusty winds are possible this weekend, according to the report.

 

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