Grain futures have corn over $6.00.
Grain futures continued to press higher overnight led by soybeans. Corn has pushed to the highest price since July 1 and is above $6.00, with March soybeans near $13.30. Acute drought stress is occurring across southern Brazil, and Argentina with limited rainfall forecasted over the next 10 days.
Yesterday, Parana’s Deral cut their GD/EX crop ratings by 14% on both corn and soybeans amid the ongoing hot/dry weather. Brazilian corn production is on the decline.
Light showers of .1-.6” fellow crossed and NE Argentina and RGDS on Tuesday. The remainder of Brazil/Argentina was dry. Showers continued across northern Brazil with accumulations of .25-1.25” and coverage of 40%. This area could use some dryness. High temperatures ranged from the 80s to the mid-90s, with the warmest areas across the parched west Parana. The heat is starting to rapidly deplete soil moisture across S Brazil and N Argentina. Forecasts remain dry in these areas through January 4.
January options expire tomorrow, and the CBOT is closed on Friday for the Christmas holiday. Grain markets open up Sunday evening with a full week of trading heading into the new year. Volatility will become heightened Sunday night if there’s a hint of reasonable rainfall.
Cattle futures recovered yesterday with the stock market improvement. Negotiated cash cattle markets were lightly traded in the Texas Panhandle with a small number moving at $135, which was one dollar lower from last week. Cattle in Nebraska sold at $135. This trend looks to hold the remainder of the week. Boxed beef values were lower for Tuesday, with the choice cutout value slipping $0.99 to $261.39, and select value is down $0.75 at $249.92. These values are still at historical high levels for year-end trade.