Oilseed and Grain Crushing
- October Soy crush was a new monthly record as expected at 196.6 million bushels, well above the 187.2 million last year.
- Meal production was also record high at 4.6 million tons, with stocks reported at 374,000 tons.
- End of October bean oil stocks at 1.964 billion pounds were higher than the 1.912 billion expected.
- USDA reported 433 million bushels of corn used for ethanol in October, up from 401 million last month but below 439 million last year.
- The quantity of sorghum used for ethanol was low enough to be practically nil.
FBN’s Take On What It Means: Corn used for ethanol was higher than expected, but seasonally production tends to peak at this time of the year. Soy crush met pre-report expectations and continues to be record high. The relatively low level of meal stocks implies demand is strong, and with fewer DDGs available we would expect this demand trend to continue.
Argentine Soil Moisture Improved
- Rainfall across Argentina during the past week was greatest in the northern and east-central production areas.
- Follow up precipitation overnight and today is expected to boost moisture levels further.
- Precipitation totals in the southern portion of the country were too light to seriously improve soil moisture.
- Net drying is forecast for Buenos Aires into La Pampa
- The forecast for December is for near to below average precipitation.
- Temperatures are projected to be near to above average for the month.
- The current La Niña weather pattern is expected to peak during December and then linger at least into the new year.
FBN’s Take On What It Means: Recent rains in Argentina were much needed to support adequate growing conditions. While the La Niña may reach its peak soon, it is difficult to forecast how strong it will be and how long it will affect ongoing weather patterns. Risk for adverse weather remains and will likely be supportive.
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