Grain prices continue their recovery.

Grain futures were higher overnight, with focus now on increasing demand with the supply guesses fully known. Profit margins for soy crushers, ethanol producers and livestock produces as well are greatly enhanced at present prices and are being acted upon. Chinese crush margins are at multi-year highs and will bring back the China as a sizable world buyer with their soy stocks allowed to the bleat as the avoided high soybean prices. This morning over 500,000 MT of beans were sold with most anticipated are to China.

NOPA is out today with its September member crush data, which is estimated to be at 156 Mil Bu, against 158.8 Mil Bu in August. Last year the crush was 161.9. Soil stocks are pegged at 1.66 Bil pounds which is unchanged from August. Due to the improved crush margins, the crush rate is starting to increase.

December Malaysian palm oil futures rose overnight 88 ringgits to 4009 65/MT on new consumer buying. Paris wheat futures moved on to new contract highs to 276 MT, with China scooping up the break that Egypt passed on. Look for Egypt to pay higher wheat prices than what they could’ve received on Wednesday before canceling their tender. Egypt is short bought a needs delivery in November/December. Waiting is not on their side.

Cattle futures moved higher on Thursday with solid gains. The boxed beef market was firm on Thursday with choice gaining $0.30 and select jumping $2. Beef cow slaughter rates have remained elevated in the last half of the year, slaughter since July has been hundred 11% last year with the cumin to figure for the year at 109%. This is the largest since 2011. Relative to the January 1 inventory, 8.5% the herd has been killed, the most since 2011. Moreover, the heifer slaughter data does not show any indication of retention. The groundwork for a longer-term cattle bull market in the new year is being produced.