Another round of contract highs for wheat overnight.
Grain futures pushed higher overnight, as the Thanksgiving seasonal uptrend continues that typically peaks either today or Friday. French milling wheat and US winter wheat contracts made new contract highs overnight before stalling is the wet five-day Eastern Australia forecast verifies with drier weather due next week. This dry weather will help quantify how much wheat has been reduced to feed quality when harvest progresses into the opening of December.
Soybeans and corn moved higher on the stability of crude oil bottoming earlier this week, with bean oil recovering above 60.00 and corn challenging its downtrend line off the summer highs on the March contract. Favorable South American weather into next week could create a correction in soybeans which remain stalled below the $13.00 value on the March soybean contract, which was a high a week ago. Chinese Dalian corn futures declined another $0.10 overnight to $10.51 while averaging near 10.75 last week.
USDA’s ERS cut their forecast for 2022 US exports $175.5 Bil siding weakening soybean demand from China. This is a hint that future soybean export reports for 2021/2022 could decline another 100+ Mil Bu from the current export forecast of 2,050 Mil Bu.
Weather models agree that near to above normal rains will continue to drop across N and C Brazil while the 10-day totals accumulate to 2.50-5.00″. At the same time, southern Brazil and Argentina will see near to slightly below normal rainfall. There is no indication of any extreme heat into December 10.
Cattle futures closed higher Tuesday with a firm outlook offered again today. Cattle rose to a 3-month high, with January feeder cattle boosting through resistance at 162.00, posting a close at 164.52. Cash cattle trade did get underway on Tuesday, with live cattle trading at $136 with dressed trade in Nebraska and the Western corn belt at $214, which is 4-$5 higher than last week. Boxed beef values were lower on Tuesday, with the choice down $0.61 and select losing $1.06.