Grain futures end mixed after a firm overnight session.

Grain futures pressed higher again overnight, with corn making new monthly price highs and wheat and soybeans challenging early September highs. Grain prices drifted lower towards the end of the night session on lackluster export sales data along with the dollar that firmed on retail sales data this morning. An active harvest weekend is ahead, and seal start to see hedge related selling towards the end of the week, and corn has rallied $0.40 off its lows since last Friday at 11 AM.

Russia is expected to see less winter wheat based on the existing floating export tax and the rising price of oilseeds and other summer row crops. Russian farmers have already sewn wheat on 7.8 Mil hectares of winter wheat, with a total estimated at 17.2 Mil hectares. Last year, Russian farmers planted a record 17.8 Mil hectares. It is expected that Russia will maintain its floating export tax through the 2022/23 crop year.

The remains of tropical storm Nicholas will slowly churn east and north, heading into the weekend and produce 2-4 inches of additional rainfall across the southeast corner of the US. The Central US will hold in a warm/dry trend with summer like high temperatures in the upper 70s to mid-90s. The heat dryness will push crop maturity. A Ridge of high pressure elongates and progresses east across the Central US through the weekend, with a trough producing rain for the northern Plains and the Northern Lake states late next week. However, the chance of rain for the Central Plains is limited, which will slow the start of winter wheat seeding. The Midwest harvest becomes active this weekend and continues through next week amid the warm/dry weather trend.

Cattle futures consolidated their 2-day recovery gains yesterday and finished slightly lower, while feeder cattle fell 1-$2 on the strength in the corn market. Cash cattle trade on Wednesday was slow on light to moderate demand. Light trade in Texas at $1 24 was steady with last week, as were sales in Kansas at 123-124. Sales in Nebraska were also even $125. Cattle slaughter at midweek totaled 355,000 head, 5000 head fewer than a year ago but slightly above the August average. Boxed beef values plunged on Wednesday, with choice down $3 and select fell close to $7, while choice/select spread’s holds at a historic choice premium at $36. Cattle futures are bouncing from extreme oversold values, but December cattle look to encounter resistance on recoveries to 132.00-133.50.