3 Big Things Today, January 5, 2024

1. Wheat Futures Higher in Overnight Trading

Wheat futures were higher in overnight trading amid declining spring stockpiles and ongoing tensions in the Black Sea region. 

Spring-wheat inventories as of Jan. 1 dropped to 16.853 million bushels, down from 18.003 million on the same date a year earlier, the Minneapolis Grain Exchange said in a report yesterday.

About 3.252 million bushels were being held in warehouses in Minneapolis/St. Paul and Red Wing, Minn. The remaining 13.601 million were stored in Duluth, Minn., and Superior, Wisc., the exchange said. 

In the Black Sea, meanwhile, two British minesweepers loaned to Ukraine to help ensure safe passage of ships through the waterway were denied entry into Turkish waters. 

Turkey said in a statement earlier this week that it closed its straits to the ships in accordance with an international pact concerning passage of vessels during wartime. 

"Turkey ... maintains its unwavering determination and principled stance throughout this war to prevent the escalation of tension in the Black Sea," the statement said. "Our pertinent allies have been duly apprised that the mine-hunting ships donated to Ukraine by the United Kingdom will not be allowed to pass through the Turkish Straits to the Black Sea as long as the war continues." 

Russia exited the Black Sea Grain Initiative in July, but since then Ukraine has paved a path through the sea to get cargo -- including grain and other agricultural products -- in and out of the war-torn country. 

Still, a Panama-flagged vessel hit a Russian mine in the Black Sea last week, injuring two sailors. 

Wheat for March delivery rose 1 3/4¢ to $6.15 ¼ a bushel overnight on the Chicago Board of Trade, and Kansas City futures added 4 3/4¢ to $6.30 ½ a bushel. 

Corn futures were down 1/2¢ to $4.66 a bushel. 

Soybean futures for March delivery fell 3¢ to $12.63 a bushel. Soymeal was down $4.60 to $371.60 a short ton and soy oil added 0.29¢ to 48.45¢ a pounds.

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2. Ethanol Output Falls, Inventories Hit Eight-Month High

Ethanol output in the last full week of December declined while inventories increased to a fresh eight-month high, according to data from the Energy Information Administration.

Production of the biofuel fell to an average of 1.049 million barrels a day in the week that ended on Dec. 29, the EIA said in a report. 

That's down from 1.107 million a week earlier.

In the Midwest, by far the biggest producing region, output dropped to 995,000 barrels a day, on average, from 1.047 million a week earlier, the agency said.

Gulf Coast production was down to 20,000 barrels a day from 24,000 the previous week and Rocky Mountain output fell to 13,000 barrels from 14,000 seven days earlier. 

East Coast output was unchanged at 12,000 barrels a day, on average, and West Coast production was steady at 10,000 barrels, the government said. 

Ethanol stockpiles in the week through Dec. 29 increased to 23.579 million barrels. 

That's up from 23.517 million the week prior and the highest level since the seven days that ended on April 21, the EIA said in its report. 

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3. Winter Weather Moves Into Central U.S. 

Winter weather is moving into several parts of the central U.S., according to National Weather Service maps. 

In western Kansas and the Oklahoma and Texas panhandles, another inch of snow on top of what's already fallen is expected, the NWS said in a report early this morning. 

Winter-weather advisories also are in effect this morning amid a mix of snow, sleet and freezing rain, the agency said. An inch is expected in most places, though some higher elevations may see more.  

Freezing drizzle is forecast this morning in counties in northeastern South Dakota, southeastern North Dakota and western Minnesota, the NWS said. A glaze of ice is forecast and caution while driving is advised.