French Milling wheat and US winter wheat make new contract highs.

Wheat futures posted new contract highs for French milling wheat, Kansas City, and Chicago wheat on concerns over the ongoing wet weather forecast for Eastern Star Australia continues into this week. 1.5-4.5″ of rain is forecasted to fall across E Australia, delaying harvest operations and causing a continuing decline in quality. Corn and soybeans followed the gains in wheat on a protein spread basis. Delivery for the December contract arrives next Tuesday with open interest still 305,000+ contracts of corn and over 66,000 contracts of wheat.

Wheat futures are within $1.00 of their 2012 price highs on new supply worries from a combination of Australian harvest rains and more rains to fall on Canada's southwest coast, causing fresh landslides and more grain transit worries. Exportable world wheat stocks are record low, and the weather is not improving supplies or supply availability. French milling wheat overnight traded at a new historic high of $308.25/MT before retreating to $306.50 before the grain session morning close.

South American weather forecasts have two chances of rain for Argentina and Southern Brazil next ten days. Those totals amount to .35-2.00″, with the 9-15 day forecast returning to dry weather with warming temperatures. Above normal rains continue to persist across N and C Brazil.

Friday's November Cattle on Feed report was neutral relative to expectations, with the NASS reporting October placement number at 102% marketing's 95% and on feed at 100%. Negotiated cash cattle trade last week was higher in all Western markets. Cattle in the south were $1-2 higher for the week at $133, while live cattle North brought $133-135 and live trades in $210 on a hot basis. Boxed beef values continued declining, with the choice dropping $6 last week and select was $6 lower, confirming their seasonal highs. Technically, February cattle are targeting 138.50-139.50.