Wheat futures lead overnight advance.
Grain futures turned higher from the onset of the opening last night, with wheat being the leader. Rising Russian export taxes for wheat, with Russia setting this coming week’s export tax at $67/MT and corn at $49.70/MT. News that Egypt will be seeking a wheat tender, which they had canceled last week, will soon be in and paying a higher price. Kansas wheat declined $0.20 off its contract high into yesterday’s low and is back at contract highs this morning alongside Minneapolis wheat, just under $10.00. Paris wheat futures are making new contract highs overnight to $280/MT.
The US dollar is lower again today and is likely to close lower for the 2nd week in a row. China’s Evergrande real estate group will avoid another default by paying its 83.5 million interest payment due tomorrow.
The Eastern Midwest looks to be in for another round of heavy rain, further delaying the harvest and raising yield risks. Rain is anticipated into November 1 with 2.5-4.00” of rainfall that will drop across the Eastern Midwest over the next ten days. Cooling seasonal temperatures also appear to be occurring into November, with highs in the 50s/60s.
South American forecast continues the same, with Brazil receiving beneficial moisture, while Argentina remains dry with elevating temperatures into the 90s. Argentina drought concerns are starting to build the forecast looking more arid into the future as the crop is over 1/3 planted.
Yesterday feeder cattle and live cattle were lower along with the commodity trade complex as the cash cattle markets went quiet on Thursday. The boxed beef market is trying to forge a low with the choice cutout holding within a one-dollar range. On Thursday, choice gained $0.63, and select box was down $0.08. USDA cattle on feed report out after the close today at 2 o’clock. The placement number is watched to see if it makes 101% of last year or higher. Drought in the Northern Plains forced more placements off pasture than normal.