French milling wheat pushes another new all-time high again overnight.
Grain futures experienced modest profit-taking overnight from yesterday's sharply higher run, with inflation being the rage and risk on being played across most of the commodity complex except for crude oil. The US government is closed today for our “Veterans Day” holiday alongside Armistice Day being celebrated in Europe for the end of World War I. Export sales data typically released this morning will be out tomorrow morning.
French milling wheat pushed another new all-time high overnight to $298/MT. In contrast, winter wheat contracts domestically corrected yesterday's strong run, with spring wheat continuing to take back a portion of the spread over winter wheat it gave up over the past week. Chinese corn futures for January fell $0.09 to $10.76. Corn prices were lower in China because they are securing corn prices to soften their domestic values. Dalian January soybean meal rose $5/MT to $491.80/MT with active end-user pricing.
Some ethanol producers in the Midwest are producing a $6.00 spot cash corn bid, and cash corn movement is considered tempted as the harvest comes to an end. However, sales are only considered routine currently. Farmers, it appears, are content to store a large portion of the 2021 crop due to historical costs to produce a new one to fill the bins again next year. Grain futures can correct and languish, but corrections will likely be very moderate with China looking for additional corn, especially out of Ukraine, and Brazilian is expected to decide on GMO wheat from Argentina along with Russia raising its export taxes on Friday. Soybeans await South American weather conditions to possibly deteriorate as La Niña is developing in the coastal waters of the Pacific Ocean, creating concern for their winter weather in southern Brazil, Argentina.
Live cattle futures were mixed yesterday with feeder cattle lower on the sharp rally in corn and feed grains. On Wednesday, cash cattle markets began trading with cattle in the South at 2 $3 higher for the week when packers raise bids to $131-132. Live sales in Nebraska were quoted $2 higher for $132 and dressed trades were reported $3-5 higher at $207. These are the highest cash cattle prices on a weekly sales basis since June 2017. Packers are again giving back some of their extensive margins with the choice cutout value down $2.28 at $285.52 and select value fell $4 to $266.62. December cattle look to challenge the $134.00 price range.