3 Big Things Today, April 25, 2024

1. Soybean futures decline in overnight trading

Soybean futures were lower in overnight trading as the Brazilian harvest rolls on.

The harvest in Brazil, the world’s largest exporter of the oilseeds, is about 87% finished, according to consultancy Conab. 

Production in the South American country was forecast earlier this month by the U.S. Department of Agriculture at 155 million metric tons, unchanged from the previous month's outlook. Analysts were expecting the agency to reduce its projection due to adverse weather. 

Exports, meanwhile, are seen at 103 million metric tons, up from 95.5 million a year earlier, USDA said. 

In the U.S., rain is forecast over the weekend in parts of the Corn Belt, which may delay planting of corn and soybeans but improve soil moisture. 

Ethanol production plunged, falling to an average of 954,000 barrels a day in the week that ended on April 19, the Energy Information Administration said in a report. 

That’s down from 983,000 barrels a day the previous week and the lowest level since the seven days that ended on Jan. 19, EIA data shows. 

Soybean futures for July delivery dropped 7¼¢ to $11.74¼ a bushel overnight on the Chicago Board of Trade. Soymeal was down $2.60 to $346.60 short ton and soy oil lost 0.02¢ to 45.25¢ a pound. 

Corn futures were down ½¢ to $4.48 a bushel. 

Wheat futures for July delivery rose 1¢ to $6.14 a bushel, and Kansas City futures fell 1¼¢ to $6.28¾ a bushel. 

2. Red meat, poultry stocks down from last year

Red meat and poultry in freezers last month plunged year over year, according to data from USDA. 

Total red meat stocks dropped 12% from March 2023 to 919.4 million pounds, the agency said. Last month’s total was down 1% from February. 

Beef in storage fell to 432.2 million pounds, down 10% year over year and 3% from the previous month. 

Pork inventories dropped 13% from the same month last year, but were up 1% from February, USDA said. 

Chicken meat in storage in the U.S. dropped 12% year over year and about 2.5% month to month, the agency said. 

The west south-central region led decliners on an annual basis, dropping 25% to 197,643 pounds, the Pacific saw a 21% decline, south Atlantic stockpiles were down 2% and inventories in the east south-central region were up 1%, USDA said. 

Total poultry supplies fell 6% from March 2023, but were up slightly month to month, the agency said in its report. 

3. Red flag warnings issued in the southern Plains

Red flag warnings have been issued for counties in the southern Plains where hard red winter wheat is growing, according to the National Weather Service,

In southwestern Kansas, winds today will be sustained from 25 to 35 mph, and gusts of up to 50 mph are expected, NWS said in a report early this morning. 

Relative humidity will fall to around 13%. 

Winds in the Oklahoma and Texas panhandles will gust up to 55 mph, the agency said. Humidity will fall as low as 8% in some areas. 

Freeze warnings are in effect in parts of several states including southern Wisconsin, much of Michigan and northern Indiana, and Ohio. 

Temperatures in southern Wisconsin and counties in northern Illinois were projected to fall to 26°F overnight, NWS said. 

Freeze warnings will remain in effect in the area until mid-morning.