Wheat prices return to last Friday's values.

Grain futures again found selling for the third day across the board overnight in wheat and corn, as liquidation continues from the spike high in the Tuesday session to new contract highs for the hard wheats. The lack of export interest for wheat and corn at this past week’s elevated prices is creating liquidation.

Soybeans are the friendly tone to the market now, while it struggles with the resistance noted at the 17.00 value. Beans stay strong as soybeans FOB out of Brazil are now quoted at $2.40/Bu over the July contract for August delivery versus just $2.15 a week ago. There are no offers available from September forward. Exporters only have to average .5 Mil Bu/week to meet the USDA’s 2021 export forecast.

Malaysian palm oil futures rallied 40 ringgits overnight as Indonesia has replaced its ban on palm oil exports with just a domestic sales rule that mandates 10 MMTs of production must be kept in the country. Indonesian palm exports resume next week, but restrictions will keep shipments below year-ago levels during the upcoming summer months.

French wheat conditions were lowered to 73% GD/EX from last week’s 82% and 89% in early May. Lite/moderate showers will pass over the northern part of France over the next 72 hours, but the overall net soil moisture loss pattern will likely continue into the first week of June. Record-high temps in the low/mid-90s are forecast in parts of Francis weekend. France accounts for near 25% of total EU wheat, corn, and rapeseed production.

Central US weather forecasts maintain a slightly drier pattern across the Western Plains and wetter in the Delta, Central and Eastern Midwest into May 28. Widespread shower activity will impact nearly the whole Midwest this weekend. A more organised rainfall pattern sweeps across S Plains and the Midwest Tuesday-Thursday, with 10-the accumulation, is high as 3-5” in OK, E KS, AR, MO, IA, IL and WI. Additional showers return to the N Plains and upper Midwest in the first week of June.

Live cattle produced a mixed trade on Thursday with a steady outlook offered for early trade today on firmer outside markets. Liquidation pressures over the last two weeks have been primarily directed towards the hefty premiums that have been built into deferred futures. December cattle has fallen back to the 200-day MA, while June cattle try to hold technical support at 131.00 ahead of the cattle on feed report out this afternoon. Box beef values yesterday had choice gaining $1.23 and select higher by four cents.

The May Livestock Slaughter report showed a total April cattle slaughter of 2.813 Mil head, 93% of March and 99% of a year ago. The average carcass weight for all cattle killed was 827 pounds, up 4 pounds from last year and record heavy for April. Today’s COF data expects 101% on feed, 96.5% placed, and 98% on marketings.