3 Big Things Today, August 1, 2024

1. Corn, soybeans slightly lower in overnight trading

Corn and soybean futures were modestly lower in overnight trading as rainfall in the northern and central Midwest offset concerns about extremely hot weather in the South. 

Rain fell in parts of Nebraska, Iowa, and Illinois throughout the week and more precipitation is expected. 

More showers and storms are expected today in parts of Illinois, Indiana, Kentucky, and southwestern Ohio, the National Weather Service said in a statement this morning. 

Iowa is free of dry or drought conditions and less than 3% of Illinois is seeing abnormally dry weather, according to the U.S. Drought Monitor, which is scheduled to update its maps today. 

Underpinning prices, however, are concerns about the severity and frequency of thunderstorms that have rolled through parts of the Midwest in recent days. 

More severe weather, including intense downpours and flash flooding, is possible with today’s storms, the agency said. 

“Many of these locations have seen recent heavy rainfall given repeated rounds of organized storms passing through, leading to wetter antecedent conditions more sensitive to additional rainfall,” NWS said. 

Corn futures for December delivery fell 1¼¢ to $3.98½ a bushel overnight on the Chicago Board of Trade.

Soybean futures for November delivery lost 2¾¢ to $10.19¾ a bushel. Soymeal gained 60¢ to $316.30 a short ton and soy oil was down 0.34¢ to 41.98¢ a pound. 

Wheat futures for September delivery gained 2¾¢ to $5.30 a bushel, while Kansas City futures rose 1¾¢ to $5.50¾ a bushel. 

2. Ethanol production jumps to a record high 

Ethanol output surged to a record high in the week that ended on July 26, according to the Energy Information Administration.

Production of the corn-based biofuel improved to an average of 1.109 million barrels a day, the agency said in a report. That’s up from 1.095 million barrels the previous week and the highest level on record. 

In the Midwest, by far the biggest producing region, output increased to 1.045 million barrels per day, on average, from 1.035 million a week earlier. 

Gulf Coast production rose to 29,000 barrels from 26,000 a week earlier, EIA said. 

Rocky Mountain output was reported at 13,000 barrels a day from 12,000 barrels the week prior, and West Coast production improved to 10,000 barrels from 9,000 barrels, the agency said.

East Coast was again unchanged at 12,000 barrels per day. 

USDA said in a report last month that it expects ethanol makers to use 5.45 billion bushels of corn for ethanol production in the 2024/2025 marketing year that starts on Sept. 1. If realized that would be unchanged from the current year, but up from the 5.176 billion bushels used in the 2022/2023 marketing year. 

Ethanol inventories in the week through July 26 increased to 23.973 million barrels, the government said. 

That’s up from 23.723 million a week earlier and the highest level for stockpiles since the week that ended on May 17, EIA said in its report. 

3. Flood warnings, watches issued for parts of Iowa

Flood warnings and watches have been issued for counties in southeastern Iowa as rain continues to fall in the area, according to the National Weather Service. 

“Excessive runoff may result in flooding of rivers, creeks, streams and other low-lying and flood-prone locations,” the agency said. “Creeks and streams may rise out of their banks.” 

Soils are saturated from precipitation yesterday and more storms are on the way, NWS said. 

Heat warnings and advisories will again take effect today for much of the southern Midwest and the Delta. 

In southern Missouri and Illinois, heat indexes this afternoon are forecast to hit as high as 110° Fahrenheit, the agency said. 

Values in northern Arkansas will likely hit 112°, NWS said.