3 Big Things Today, May 9, 2024

1. Soybeans, grains higher in overnight trading

Soybeans and corn were higher overnight and wheat surged on concerns about global weather. 

Flooding in the Brazilian state of Rio Grande do Sul has killed around 100 people so far and left another 110 missing, the government said. Parts of the state are still under water. 

Fields are flooded and access to ports from inland farming areas has been disrupted in Brazil, the world's largest exporter of soybeans. 

Grain trucks are having to drive an extra 250 miles to deliver their goods, exporter association Anec said earlier this week. 

In the U.S., meanwhile, rainfall has missed much of the Oklahoma and Texas panhandles in the past seven days, according to the National Weather Service’s precipitation page. 

Stripe rust has been found in 24 Kansas counties so far, according to Kansas State University's Agronomy Department. 

The winter-wheat crop in Kansas is ahead of its normal growth stage, leaving several regions past the window for fungicide applications, the university said in an update last week. 

Soybean futures for July delivery rose 4½¢ to $12.32¼ a bushel overnight on the Chicago Board of Trade. Soymeal added $1.90 to $380.40 a short ton, and soy oil was up 0.03¢ to 43.82¢ a pound. 

Corn futures gained 2¢ to $4.60½ a bushel. 

Wheat futures for July delivery jumped 9¢ to $6.43 a bushel, and Kansas City futures were up 12¼¢ to $6.60¾ a bushel. 

2. Weekly ethanol production, inventories decline

Ethanol output fell and inventories dropped to the lowest level this year in the seven days that ended on May 3, according to the Energy Information Administration.

Production of the biofuel fell to an average of 965,000 barrels a day, EIA said in a report. That’s down from 987,000 barrels a week earlier. 

In the Midwest, by far the biggest producer, output dropped to an average of 914,000 barrels, down from 930,000 the previous week, the agency said. 

Gulf Coast production fell to 22,000 barrels from 25,000 a week earlier, and Rocky Mountain output declined to 8,000 barrels from 11,000. 

East Coast output was unchanged at 12,000 barrels a day, on average, and West Coast production was steady at 9,000 barrels, the government said. 

Ethanol inventories in the week through May 3 dropped to 24.2 million barrels. That’s down from 25.488 million a week earlier and the lowest level since the seven days that ended on Dec. 29, EIA said in its report. 

3. Flood warnings issued in Kentucky, Tennessee

Flash flood warnings and flood watches have been issued in parts of Kentucky and Tennessee, according to the National Weather Service.

As much as 6 inches of rain fell in south central Kentucky overnight and flash flooding is already occurring, NWS said in a report early this morning. 

In central Tennessee, from 5 to 7 inches of precipitation have already fallen, and floods will continue in the area. No additional rainfall is forecast for this morning in some areas, while some counties may see another inch, the agency said.

In western Iowa, meanwhile, thunderstorms likely will fire up starting tomorrow and again on Sunday. 

Storms are possible in northern Iowa and southwestern Minnesota today, though severe weather isn’t expected, NWS said.