1. Soybean and Grain Futures Rise in Overnight Trading

Soybean and grain futures were higher in overnight trading on adverse global weather and strong demand for U.S. agricultural products.

Growers in Brazil, the world’s largest exporter of soybeans, are reportedly having to plant into dry ground due to a lack of rainfall in producing states.

Futures also are getting a boost from continued demand for U.S. supplies.

Exporters sold 132,000 metric tons of soybeans to China for delivery in the marketing year that started on Sept. 1, the U.S. Department of Agriculture said yesterday.

An unnamed country also bought 120,000 metric tons of beans, the USDA said.

On Tuesday, the agency reported a sale of 154,400 metric tons of soybeans to an unknown country. Earlier this week, the USDA said Mexico bought 160,020 tons of corn for delivery in the 2020-2021 marketing year.

Since Sept. 1, overseas buyers have committed to purchase 24.6 million metric tons of corn from the U.S., a 154% increase from the same point last year. Importers have also bought 38.1 million metric tons of soybeans since the 2020-2021 marketing year started at the beginning of September, a 169% year-over-year increase, the USDA said.  

Wheat futures rose overnight amid ongoing concerns about winter wheat planting in the U.S. southern Plains. Little or no rain has fallen in the region for the past 14 days, according to the National Weather Service.  

Soybean futures for November delivery gained 11¢ to $10.62 a bushel overnight on the Chicago Board of Trade. Soymeal added $6.40 to $368.20 a short ton, and soy oil fell 0.06¢ to 32.97¢ a pound.

Corn futures for December delivery rose 4¢ to $3.92¾ a bushel.

Wheat futures for December delivery gained 6½¢ to $6.14 a bushel in Chicago, while Kansas City futures were up 6¾¢ to $5.51¼ a bushel.

2.  Ethanol Output Rises Weekly While Stockpiles Lowest in Almost Four Years

Ethanol production jumped to a three-week high in the seven days that ended on Oct. 2 while inventories declined to the lowest in almost four years, according to the U.S. Energy Information Administration.

Output of the biofuel increased to an average of 923,000 barrels a day last week, up from 881,000 barrels a week earlier.

That’s the highest production level since the week that ended on Sept. 11, the EIA said in a report.

In the Midwest, by far the biggest producing region, output jumped to 881,000 barrels a day, on average, last week. That’s the most since the week that ended on Sept. 4.

Gulf Coast production rose to an average of 17,000 barrels a day from 14,000 barrels the previous week, the EIA said.

Rocky Mountain output was unchanged at 10,000 barrels a day, and West Coast production was unchanged at 9,000 barrels a day, the agency said.

East Coast production, meanwhile, plunged to an average of 6,000 barrels a day from 13,000 barrels in the prior seven-day time frame.

Ethanol inventories, meanwhile, declined week-to-week.

Stockpiles in the week through Oct. 2 fell to 19.672 million barrels from 19.691 million a week earlier, the EIA said.

That’s the smallest inventory level since the week that ended on Dec. 30, 2016, the agency said in its report.

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3. Red-Flag Warning Issued in Kansas, Hurricane Delta Takes Aim at Texas, Louisiana Coasts

A red-flag warning has been issued for all of western Kansas and several counties in eastern Colorado due to low humidity and gusty winds, according to the National Weather Service.  

The warning, which begins at 1 p.m. today, is in effect as relative humidity is expected to fall as low as 9% this afternoon, the NWS said in a report early this morning.

Winds are forecast to be sustained from 5 to 15 mph with gusts of up to 30 mph.

“Conditions will be favorable for rapid rates of fire growth and spread,” the NWS said.

Along the Gulf Coast, hurricane, storm surge, and tropical storm warnings are all in effect for parts of Texas and Louisiana as Hurricane Delta bears down.

Winds of up to 110 mph are expected when the storm makes land on Friday, the NWS said in a separate report. Residents in Delta’s path should expect Category 3 hurricane-force winds or possibly higher.

“Remaining efforts to protect life and property should be urgently completed,” the NWS said. “Prepare for catastrophic wind damage.”