Soybeans lead overnight sell-off.
Grain futures worked lower overnight, led by the soybeans, as rain moved southward into northern MGDS/Sao Paula/N Parana overnight, bringing rains of 1-2”. The heavier rains were more of a localized event. This weekend, there is still the potential of rains in these same areas. Otherwise, there is no change in the overall American weather pattern.
Russia set its export tax for FOB wheat in the January 12-18 period at $98.204/MT, corn at $67.7/MT, and barley at $8 6.12/MT. This wheat export tax sets a record high as it pushes closer to $100/MT. Russia will not export any corn and 2022 due to the soaring export tax. WASDA still has Russia exporting 4.5 MMT’s of corn, which will have to come partially from the US.
China will be auctioning off 500,000 MTs of reserve million wheat stocks on January 5 that can only be purchased by wheat flour processing companies and cannot be resold into the cash market feed compounders or other millers.
In South America, rains did fall across some of the dryer regions of southern Brazil, while high temperatures still range from the mid-80s to lower 100s. The balance of southern Brazil crop areas along with Argentina remains dry. There is limited rainfall forecasted for this weekend for S Brazil/Argentina. In the upcoming 6-9 day, Parana/MGDS will see widely scattered rain of .5-2.50”. RGDS/Santa Caterina and all of Argentina will hold in a dryer trend with just .1-.6” a potential rainfall. Dryness returns to all of S Brazil/Argentina in the 11-15 day., While northern Brazil continues to battle forecasts of 5.00-12.00” of rain over the next 10 days. These rains in northern Brazil are delaying the early harvest of soybeans.
Cattle futures closed higher on Wednesday, while cash cattle markets were quiet. Late business this week was limited to Nebraska and the Western Midwest with higher prices for the week. Cattle slaughter so far this midweek has totaled 358,000 head, 3000 head less than a week ago, and 5000 head more than a year ago. Box beef prices were higher, with the choice gaining $1.05 and the select value was $1.00 higher. The choice/select spread is now $8 .62 choice premium.