Soybeans, grains higher overnight
Soybean and grain futures are looking to end the week and month on a positive note amid concerns about more rainfall in southern Brazil.
Flood waters have started receding in the Brazilian state of Rio Grande do Sul, but there’s a possibility for more rainfall in the region.
The week two outlook shows a potentially wetter pattern in southern Brazil and Argentina, which would increase concerns about fieldwork in the area, Commodity Weather Group said in a note to clients.
More than 150 people were killed in recent flooding in Rio Grande do Sul and over 600,000 have been displaced.
Wheat futures were higher overnight on worries about crops in Russia and Ukraine.
About half of the wheat in the Black Sea region remains stressed and hot weather in southern Russia is threatening crop prospects, CWG said.
Relief in the area will be limited for at least the next 10 days, the forecaster said.
Also underpinning prices is a weaker dollar, which was down another 0.4% overnight. A weaker greenback makes U.S. goods more attractive to overseas buyers.
**Soybeans, grains, rainfall, southern Brazil, flooding, wheat futures, Russia, Ukraine, weaker dollar**
Ethanol output surges to near two-month high
Ethanol output jumped to the highest level in almost two months while inventories dropped in the seven days that ended on May 24, according to data from the Energy Information Administration.
Production rose to an average of 1.068 million barrels a day, up from 1.019 million a week earlier, the agency said in a report.
That’s the highest level since the week that ended on March 29.
In the Midwest, the biggest producing region in the U.S., production rose to an average of 1.007 million barrels a day, up from 964,000 barrels a week earlier.
Gulf Coast output increased to 27,000 barrels from 23,000 a week earlier, and West Coast production was up to 10,000 barrels from 9,000, EIA said.
East Coast production, meanwhile, was steady for a fifth straight week at 12,000 barrels and Rocky Mountain output was unchanged at 11,000 barrels a day, on average, the government said.
Ethanol stockpiles in the week through May 24 were reported at 23.207 million barrels.
That’s down from 24.212 million seven days earlier and the lowest level for inventories since the week that ended on Dec. 15, EIA said in its report.
**Ethanol output, Energy Information Administration, Midwest, Gulf Coast, West Coast, East Coast, Rocky Mountain, stockpiles, inventories**
Storms forecast for central Nebraska, Kansas
Thunderstorms will continue today and tonight in parts of south central Nebraska and north central Kansas, which could produce some localized flooding, according to the National Weather Service.
“The threat for severe weather is low, but some storms could still produce small hail, gusty winds, and locally heavy rain,” NWS said in a report early this morning.
Storm chances will persist in the region through at least the weekend.
Showers are forecast for much of central Iowa through tonight along with gusty wind, the agency said.
Storms may refire on Sunday and again early next week, NWS said.
“A few stronger storms are possible later Sunday, but the severe risk remains low at this time,” the agency said.
**Storms, central Nebraska, Kansas, thunderstorms, National Weather Service, severe weather, small hail, gusty winds, heavy rain**