1. Corn futures remain stable, soybeans are up ahead of USDA-WASDE report
In overnight trading, corn futures are steady while soybean futures are up 6 cents. Wheat futures also rose 1¢-4¢ ahead of today's USDA WASDE and Crop Production reports.
Ahead of these reports, traders are not expecting any major changes in corn and soybean yields or production numbers compared to the previous month.
However, the trade is expecting some big changes in quarterly stock data compared to last year, says Bob Linneman of Kluis Commodity Advisors. Corn stocks may be the highest in five years, while soybean stocks may be the lowest in the last three years. Quarterly wheat inventories are expected to be the largest in three years.
“Will the dynamic change once the knee-jerk reaction to the report is expressed? Will bears take advantage of a bearish report and start covering shorts? “This report has been a key turning point for prices more than once,” says Linneman.
With the Martin Luther King Jr. holiday upon us, grain markets will trade normally through today's close. To mark MLK Day, there will be no trading on Sunday evening or during the day on Monday. Grain trading will resume on Monday evening.
In the night markets, the March corn trading range is 2¢, with prices holding steady at $4.58
March soybean prices are currently up 6¢ to 12.43. In the night markets the trading range was 8¢.
CBOT wheat is up 4¢, while Minneapolis wheat is up 2¢ and Kansas City wheat futures are up a penny.
Cattle futures closed higher on Thursday. February Lean Hogs closed up 52¢ at $72.60. February Live Cattle closed up $1.05 at $171.80. January Feeder Cattle closed up $1.65 at $226.27.
2. Lower commodity prices lead to tighter budgets for corn and soybean farmers
In updated crop budgets, agricultural economists Nick Paulson and Gary Schnitkey estimated the 2024 corn crop would sell for a seasonal average of $4.50 per bushel and this year's soybean crop would bring in an average of $11.50 per bushel, in line Cash bids, futures markets, and USDA forecasts. “These prices represent significant downward revisions” from August crop budgets of $4.80 for corn and $12.80 for soybeans, they said.
Read more about expected cost reductions in fertilizer and land leases in Successful Farming's latest coverage.
3. The Midwest and Great Lakes region are bracing for another round of snowstorms
Dangerously cold Arctic air will spread southwards across the country into the weekend. An extremely active weather pattern will continue, producing heavy snow and blizzard conditions across the Midwest and Great Lakes. This energetic jet stream will drive multiple storm systems across the country.
Moderate to heavy snowfall is expected to spread from the Missouri Valley toward the Great Lakes on Friday. Parts of Wisconsin and Michigan are likely to see more than a foot of snow Saturday night. In addition to the snow, wind gusts of up to 50 mph are expected to make travel nearly impossible during the first part of the weekend. As of Friday morning, blizzard warnings, winter storm warnings and winter weather warnings were in effect for parts of both states.
Bitterly cold temperatures in the Northern Plains will spread to the Central Plains on Friday and reach the Mississippi Valley/Southern Plains on Saturday. The NWS expects several cold weather records to be set this weekend as low temperatures approach -45°F. are forecast for Saturday morning. At the same time, the Central Plains will likely see highs in the single digits.
Wind chill will be a problem across the Plains, bringing the risk of frostbite to exposed skin within minutes. These temperatures and wind chills can be life-threatening for stranded motorists.
The NWS recommends preparing your vehicle with an extra flashlight, food and water if you must travel. Plan for dangerous road conditions with limited visibility. If you become stranded, stay with your vehicle.
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