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3 Big Things Today, August 8 - Successful Farming

1. Soybeans, Grains Higher Ahead of WASDE Report

Soybeans and grains were higher in overnight trading as investors square positions ahead of Monday’s World Agricultural Supply and Demand Estimates (WASDE) Report.

Analysts surveyed by Reuters said they expect soybean area of around 81 million acres and yield of 47.6 bushels an acre. Production is seen around 3.8 billion bushels. In July, the USDA said it expected planted acreage at 80 million, yield of 48.5 bushels an acre, and total output of 3.845 billion bushels.

Corn acres are pegged at around 88 million with yield of 164.9 bushels an acre, resulting in production of 13.193 billion bushels, the survey showed.

The USDA last month forecast corn planted area of 91.7 million acres, yield of 166 bushels an acre and output of 13.875 billion bushels.

Soybean inventories in the marketing year that ends on August 31, 2020, are expected to come in around 821 million bushels, while corn stockpiles are forecast at about 1.62 billion bushels, Reuters reported.

Weather is mixed with parts of Kansas, Missouri, and Arkansas expecting rain and the Southern Plains through the western Gulf Coast getting extremely high temperatures the rest of the week.

Traders also are keeping an eye on the ongoing trade war between the U.S. and China, which at this point has no end in sight.

Soybean futures for November delivery rose 4½¢ to $8.71¼ a bushel overnight on the Chicago Board of Trade. Soy meal added $1.10 to $301.10 a short ton, while soybean oil gained 0.24¢ to 28.61¢ a pound.

Corn futures for December delivery added 2¼¢ to $4.16¼ a bushel overnight.

Wheat for September delivery rose 4½¢ to $4.92¾ a bushel, while Kansas City futures gained 2¢ to $4.19¾ a bushel.

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2. Ethanol Production Rebounds From Lowest in Three Months, Stockpiles Decline

Ethanol production rebounded from a three-month low last week while stockpiles dropped to the lowest level in almost a month.

Output of the biofuel rose to an average of 1.04 million barrels a day in the seven days that ended on August 2, according to the Energy Information Administration. That’s up from 1.031 million barrels a day, on average, the previous week.

Last week’s production was the highest average since the week that ended on July 12.

The bulk of the increase was in the Midwest, by far the biggest ethanol-producing region in the U.S., where output rose to 961,00 barrels a day, on average, from 952,000 barrels the prior week, the EIA said.

Production in the Rocky Mountain region increased to an average of 14,000 barrels a day from 13,000 barrels a week earlier.

East Coast output was unchanged at 25,000 barrels a day, Gulf Coast production stayed at 24,000 barrels, and West Coast producers left output at 16,000 barrels a day, on average, the government said in its report.

Stockpiles, meanwhile, dropped to 23.117 million barrels in the week through August 2, which was the lowest amount since July 5, the EIA said.

In other news, the USDA is expected to release its weekly Export Sales Report at 8:30 a.m. in Washington today. Analysts are expecting corn sales from 300,000 to 900,000 metric tons, soybean sales from 100,000 to 700,000 tons, and wheat sales from 250,000 to 500,000 tons, according to researcher Allendale.

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3. Strong to Severe Thunderstorms Expected Again in Eastern Kansas Through Arkansas

A grouping of strong to severe thunderstorms is expected across parts of eastern Kansas, Missouri, and Arkansas  tonight, bringing heavy rains, according to the National Weather Service.

Another round of stroms is expected to fire up on Thursday night into Friday morning in the same area, the NWS said in a report early this morning.

“There is potential for multiday rainfall totals of several inches from roughly southeast Kansas into northern Arkansas with flooding and flash flooding a threat,” the agency said in its report.

Flash flood warnings, flood warnings, and flash flood watches already are in effect for much of eastern Kansas this morning, weather maps show.  

Parts of the Great Lakes and Ohio Valley regions also may see severe weather, including heavy rainfall the rest of the week.

In the Southern Plains and parts of several states including Texas, Louisiana, and Arkansas. Meanwhile, hot and humid conditions are expected with daytime highs forecast to top 100?F. Heat advisories are in effect as indexes are expected to top 110?F. for the next few days.


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