Brazil data out this morning.
Grain futures have a mixed start Tuesday morning with soybeans holding near Monday's lows. This morning, Brazil's CONAB crop report put the been estimated 140.5 MMT's versus their December gas of 142.9 as yield cuts in Parana and RGDS offset gains in central and northern crop areas. The average guest for Wednesday's USDA yield is 140.54 Brazil. Brazil's summer corn production was cut by 4.3 MMT's to 24.8 MMT's. Safrina production was left unchanged and safrina seedings are already projected to rise 6% to record 15.8 mil Hectares. This leaves total Brazilian corn production at 112.9 MMT's.
Late Monday, the USDA's attaché to Buenos Aries estimated the Argentine soybean production at 46.5 MMT's down from the USDA's December forecast of 49.5 MMT's.
This week's forecast has Argentina trending dryer in key crop areas, with hints that important areas of Cordoba, Buenos Aires and Santa Fe will see little to no rainfall over the next two weeks. The market has digested some of the shift to some weather conditions for Brazil and northern Argentina. Still, the days ahead are critical whether the coming rain is an interlude from the hot dry pattern this week or lasting change. Argentine temperatures peaked at 104-106° by Friday.
Cattle futures are lower to start the week, with April live cattle near significant moving average support above 140.00. Technical damage will increase if April cattle closes under 140.00. Box beef values were sharply higher yesterday with choice gaining $4.22 to $276.04 and select value was $5.40 higher at $266.50. Cash cattle markets were quiet on Monday, but early week strength in the beef market is perhaps sending a message that packers will have to pay to get show lists bought this week. Cattle futures have peaked at the calendar year's opening, which is consistent with the last two decades. Historically the highs from last week will hold through January.