South American weather becomes focus.
Grain futures were mostly higher overnight with corn mixed as holiday reduced volume continues to come into play while index funds completing their re-balancing yesterday. This is the last full trading week of 2021, with the next two weeks being shortened to four-day weeks. Open interest data shows that funds and traders are expanding their positions in reaction to the deepening Southern Brazil and Argentine developing drought.
Outside of weather there is not much in fresh news available to dictate pricing directions. Taiwan is tendering for 110,000 MTs of US high protein wheat. Talk continues that China is asking for offers on US corn, but export interest will thin into the holidays. It is still anticipated that Egypt will return soon to tender for wheat to be delivered in February. Egypt lately has been doing tenders over the weekend.
South American weather maintains sunshine and dry weather across southern Brazil and Argentina with high temps ranging in the upper 70s to mid-90s with most of the heat focused on the dry areas of Western Parana. Scattered showers continue to in N Brazil where rainfall has been plentiful. The high-pressure Ridge, which is blocking moisture, appears to hold through December 27 across N Argentina-S Brazil. The Ridge spawns heat with daily highs reaching into the 90s and lower 100s.
Cattle futures ended firm yesterday after finding support against the 100-day MA. Cash trade was limited on light packer demand for Thursday. Early week sales had cattle in Kansas selling $2 lower at $138, while light sales in the Texas Panhandle were down $4 to $136. So far this week, the dressed trade in Nebraska has been $2 lower to $218. The boxed beef market had choice rising $2.71 to $269.82, and select was higher by $0.69 to $248.14. Now into summer.