Egypt's snap tenders for wheat overnight.
Grain futures traded mostly firm overnight, except for a volatile lower swing at 2 AM in the morning that reverted back higher on Egypt’s GASC snap tender for mid-December wheat. This tender is due later this morning when they will likely again secure E European or Black Sea wheat in a tender for December 11-20th. Some are wondering if Australia may join the tender with their harvest starting at the end of November. French milling wheat made new contract highs for the year at $288.50 MMTs up $5/MT, while Minneapolis wheat has rallied to 1069.6, a new decade high. Soybean values were as much as $0.12 lower in the evening on disappointing Chinese demand and favorable South American weather.
Corn futures pushed to a new recovery high in the early morning hours following the wheat market. Some traders think fund managers may return to buy corn on the opening day of the month on the backs of the recovery in crude oil back to $84.00. However, there is resistance on December corn at 574, with major resistance at the trendline off the summer highs at 584, which also matches the 62% retracement.
This afternoon’s crop progress reports have estimates of 68-71% of the US corn and 75 5 and 70% of the US soybean harvest completed. This is behind last year and the 5-year average. Favorable harvest weather is ahead now into next weekend.
In the Midwest, rains have finished up across the Eastern Midwest over the weekend with additional totals of up to 1.25” with the heaviest amounts and the eastern and southern areas of the Midwest. The Western Midwest was dry with light showers and even a little bit of snow was falling across Nebraska this morning. The forecast offers an extended drying period with warming temperatures beyond November 6 for Central Canada and the Central US. Temperatures look to return to a much above normal after November 6 with the dry weather trend.
Rainfall fell across Argentine crops on Sunday with totals of .5-2.50”. This rain helps the newly planted corn-soybean crops to germinate. Additional rain is slated to drop across Argentina in the next ten days.
Cattle futures tumbled the last two days of last week, while October cattle expired at $127. The cash cattle trade was higher across the Plains, with cattle selling primarily in the 126-127 range. Boxed beef market confirmed a seasonal low was scored at mid-month, with the choice value rising $2.68 during the week to end the month at $285.72 versus $208 last year. Cattle slaughter last week reached a 20-week high of 660,000 head. The weekly figure put October federally inspected cattle slaughter at 2.793 Mil head, 97% of a year ago and the lowest in 4 years. Significant support for December cattle is at 127.50-128.00 the 50-day MA.