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Grain futures experienced a notable increase in overnight trading, driven largely by escalating tensions in the Black Sea region.
Overnight Grain Futures Surge
Recent Russian attacks on Ukrainian ports and vessels have heightened concerns, particularly affecting agricultural exports.
Reports indicate that six individuals lost their lives and eight others sustained injuries during ballistic missile strikes targeting ports in the Odesa area of Ukraine. Notably, a Panamanian-flagged cargo ship, the Shui Spirit, suffered damage from these attacks.
In another incident, the Paresa, a vessel flying the St. Kitts and Nevis flag and carrying 6,000 tons of corn, was attacked on Monday. Fortunately, no injuries were reported from this particular strike.
Compounding the situation, Algeria has barred French companies from participating in wheat import tenders, reflecting strained diplomatic relations. According to Reuters, Algeria purchased over 500,000 metric tons of wheat during a recent tender on Tuesday.
As a result of these developments, wheat futures for December delivery rose by 9¢ to $6.08 a bushel on the Chicago Board of Trade. Additionally, Kansas City futures increased by 8¢, reaching $6.16¾ a bushel.
Corn futures also gained 2¢, settling at $4.23 a bushel. In contrast, soybean futures for November delivery fell 1¢ to $10.19¼ a bushel, with soymeal decreasing by 60¢ to $320.60 a short ton. Soy oil saw a minor dip, down 0.14¢ to 42.92¢ a pound.
Ethanol Production Hits Three-Week High
Ethanol production has surged to its highest level in three weeks, alongside a decrease in inventories, according to the latest data from the Energy Information Administration (EIA). F
or the week ending October 4, production averaged 1.038 million barrels per day, up from 1.015 million barrels the previous week. This marks the highest production level since September 13.
In the Midwest, which remains the largest producing region, average production climbed to 979,000 barrels per day, compared to 961,000 barrels the week before.
The East Coast saw a rebound in output following Hurricane Helene, with production rising to an average of 11,000 barrels a day from 6,000 the week prior.
Meanwhile, Rocky Mountain production increased to 15,000 barrels, up from 13,000 the previous week. However, Gulf Coast output decreased to 24,000 barrels a day from 26,000, while West Coast production also fell to 9,000 barrels from 10,000.
Ethanol inventories for the week through October 4 totaled 22.154 million barrels, a decline from 23.459 million barrels the week before and the lowest inventory level since December 8, as reported by the EIA.
Hurricane Milton Impacts Florida
Hurricane Milton made landfall overnight on Florida’s West Coast as a Category 3 hurricane, bringing with it several tornadoes before reaching the state.
The storm is currently moving across eastern Florida, generating hurricane-force winds and heavy rainfall, according to the National Weather Service (NWS). Milton is anticipated to move out into the Atlantic Ocean later today.
In the northern regions, particularly Minnesota and Wisconsin, extremely dry conditions coupled with low humidity—dropping to around 25%—are creating tinderbox-like scenarios.
The NWS has highlighted that breezy conditions may elevate the risk of wildfires. They noted, “Near-critical fire weather conditions and near-record temperatures are possible this afternoon.”