Ethanol Production Levels Remain Unchanged From Previous Week, Inventories Increase
In the week ending on Dec 14, the Energy Information Administration reported that ethanol production was 1.046 million barrels per day, unchanged from last week. Ethanol stockpiles were shown to have grown to 23.873 million barrels, an increase of 983,000 barrels from last week and is now the largest amount of inventories since Oct 19. Green Plains, a major ethanol producer, announced on Tuesday that their 55 million gallon plant in Fergus Falls, MN would be idled due to weak margins. The ethanol industry as a whole continues to suffer through a depressed margin environment.
Soybean Export Sales Soar Past Expectations, Corn Posts Strong Numbers As Well
The USDA’s Export Sales report showed that from Dec 7-13, soybean export sales were 2,835,600 MT, well above expectations and is a crop marketing year high. Top buyers of US soybeans were China, Mexico, and the Netherlands. For corn, the USDA reported export sales at 1,974,400 MT, also a marketing year high and 87% higher than the 4 week average. The largest purchasers for the week were Mexico, Japan, and Colombia. Wheat numbers disappointed, coming in below expectations at 313,600 MT, 58% lower than last week and 42% below the 4 week average. The biggest buyers of US wheat were Japan, Ecuador, and Taiwan.
Export Sales Announcement
Export sales of 204,000 metric tons of soybeans for delivery to China during the 2018/2019 marketing year; and export sales of 257,000 metric tons of soybeans for delivery to unknown destinations during the 2018/2019 marketing year; and export sales of 426,800 metric tons of corn for delivery to Mexico. Of the total, 373,455 metric tons is for delivery during the 2018/2019 marketing year and 53,345 metric tons is for delivery during the 2019/2020 marketing year.
Cattle On Feed Report Released Today At 2 PM CST, Hogs & Pigs Report On Friday
The USDA’s Cattle on Feed report is scheduled for release today, Dec 20, at 2 pm CST. Analysts expect to see that fewer cattle were placed on feed during November 2018 than the same month last year. Traders also expect to see total cattle inventories to have increased by about 1.7% from this time last year, representing around 11.712 million head. The USDA will also be releasing their Quarterly Hogs and Pigs report on Friday Dec 21. Analysts expectations are that the total Dec 1 US swine inventory will be around 2.7% higher than the same period in 2017.
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