End-user buying a feature overnight.

Grain futures are higher overnight as end-user buying stepped into the overnight session. USDA confirmed yesterday that the Eastern Midwest corn and soybean crops are record large but not big enough to offset the Plains and Western Midwest losses. The world is coming to the rationale that there is not a hefty harvest to help hold down feed/wheat flour/veg oil prices.

The Pro Farmer Crop Tour starts next week to confirm or deny the NASS yield estimates. Since the tour will spend considerable time in the E Midwest, it could be anticipated that yield reports will be high and offer the current grain rally a pause ahead of harvest. The NASS September crop estimate is the benchmark in terms of actual 2021 US corn/soybean yield ideas. Also, the FSA data argues that NASS could find an extra 500,000-1.0 Mil acres of planted corn in the October report when all the FSA program acres are tallied. US farmers likely seeded more corn than what NASS indicated in June. This was the reason for the late corn sell-off from the highs yesterday at 1:00 PM.

December corn will look to have heavy resistance in the 5.90-6.10 range, while November soybeans will find price target resistance at 13.85-14.10. French milling wheat has multiyear resistance at 275-280 a metric ton. This translates to resistance on Kansas City wheat at 7.80-8.00 and Minneapolis at 9.85-10.00. An upcoming demand led bull market will find rising support on price corrections.

A generally dry Central US weather pattern will prevail for the next 6-7 days with ill-defined Plains and W Midwest rains in the 8-14 day period. Showers have pushed southward along a front which will produce rain from E Kansas into Virginia thru the weekend. Rain totals are estimated at .5-2.00″ with locally heavier amounts. The Midwest and the N Plains stay dry into mid next week with showers in the 7-10 day period. The rain is desperately needed in the N Plains. Heat will persist across the Plains and the W Midwest with high temps ranging from the upper 80’s to the lower 100’s for another 3-4 days with cooler temps after that. The E Midwest is warm with high temps ranging from the 80’s to the lower 90’s. A cooler 9-14 day forecast is offered for Aug 25-29th. Better rain is suggested in the 10-15 day period, but confidence in these rains is low.

Cattle futures were higher yesterday on slow light demand in Nebraska. Live cattle moved at hundred $23-hundred 26 versus 125 the week before. Dressed sales developed steady for the week at hundred $98, with more business to be done this week. The outlook holds firm to finish the week out. Boxed beef prices continued to climb on Thursday. The choice-value jumped $7.13 to $317.93 (up $22 this week), and the select value gained $2.32 to $290.31 (up $13 this week).