Wheat futures rose in overnight trading as concerns grew about weather conditions in some global growing regions. Don Keeney, an agricultural meteorologist with Maxar, said dry weather will prevail in much of northern and eastern Europe throughout the weekend. Rain is forecast for parts of France, Germany, and Spain through Monday, providing some relief.
In the U.S., extremely cold weather has lingered over the southern Plains, increasing the chance for winterkill. Some areas have a protective blanket of snow covering overwintering hard red winter wheat plants, Keeney noted. However, parts of the Oklahoma and Texas panhandles have little snow coverage, according to maps from the U.S. Forest Service.
In contrast, snow cover is prevalent in western and southern Kansas and much of eastern Oklahoma. Brazilian farmers are expected to harvest 171.3 million metric tons of soybeans this year, according to AgroConsult, down from the previous month’s projection of 172.3 million metric tons. The USDA forecasted Brazilian soybean production at 169 million metric tons earlier this month.
Wheat futures for May delivery added 5¢ to $6.05¼ a bushel overnight on the Chicago Board of Trade, while Kansas City futures gained 4¼¢ to $6.24¼ a bushel. Corn futures fell ½¢ to $5.12¼ a bushel. Soybeans for May delivery lost ¾¢ to $10.62¼ a bushel.
Soymeal fell $1 to $303.60 a short ton, and soy oil dropped 0.21¢ to 47.58¢ a pound. Ethanol production and inventories rose modestly in the seven days that ended on Feb.
Wheat futures rise amid weather concerns
14, according to data from the Energy Information Administration (EIA). Output averaged 1.084 million barrels a day, up from 1.082 million barrels the previous week. In the Midwest, the largest producing region, output averaged 1.033 million barrels a day, up from 1.023 million barrels the week prior, EIA reported.
East Coast production was unchanged at 11,000 barrels a day, while Rocky Mountain output fell to an average of 11,000 barrels a day from 12,000 barrels a week earlier. The West Coast saw a decline to 9,000 barrels a day from 10,000 barrels previously. The Gulf Coast experienced the largest drop, falling to an average of 19,000 barrels per day from 27,000 the previous week.
Ethanol inventories increased to 26.218 million barrels in the week through Feb. 15, up from 25.692 million barrels a week earlier. The cold weather that has been hovering over much of the central U.S. is expected to give way to more moderate conditions this weekend, according to the National Weather Service (NWS).
In central Nebraska, wind chills were expected to hit minus-25° Fahrenheit overnight. Temperatures are forecast to rise above freezing starting Saturday. “A gradual warm up will continue through the weekend and into early next week,” the NWS stated.
Areas in southwestern Kansas and the Oklahoma and Texas panhandles likely saw temperatures around minus-10°F overnight. Temperatures will moderate this weekend, with highs reaching the 60s, although lows will still drop into the low 20s.