Grain prices find renewed buying interest overnight.
The commodity world recovered overnight from yesterday’s thrashing with crude oil lifting over $1.00 barrel, metals firmer, and grain pricing also finding bargain-hunting in the recent sharp decline. However, the three-day weekend coming up will heighten volatility with the never-ending Black Sea political tensions, and potential moisture for S Brazil and Argentina forecasted for late next week.
Russia is back in the news again, if not anything, to keep ratings rolling for the attention-getting media. Overnight it was reported that Russia was in fact, not removing troops from the Ukraine border area but was re-positioning them. This put the algorithm headline buying machines back into play last night after 8 PM. The Biden administration and media have been crying wolf now for a week over an imminent Russian invasion of Ukraine. After this three-day weekend, the wolf cry will need new energy to create excitement.
The South American forecast has dryness that continues to be maintained in S Brazil and Argentina for the next eight days while extreme heat of highs in the 90s to lower 100s will be endured. Soybeans are podding now in the second corn crop is pollinating and filling. Rain showers with the heaviest totals of .5-1.50” are forecasted for Buenos Aries while the remainder of Argentine crops receives traces to .6”. As a result, Argentina and S Brazil crops will continue to decline while the market awaits hopeful forecasted rains late next week.
On Tuesday, cash cattle markets were quiet, with offers quoted at $142-143 across the south while a few hundred head did move at $142. The cash outlook remains steady to $2 higher this week. Box beef prices were sharply higher on Tuesday, with the choice cutout gaining $3.59 at $270.37 while select was lower by $0.93 at $267.82. The choice/select spread is now at $2.55. April live cattle technicals appear to have placed a short-term top at 148.50 with correction potential to 143.50-144.00, which is just above the 50-day MA.