US weekly export sales entice short covering in grains and improve basis around the US.

Thursday’s weekly export sales ending October 17th announced corn at 141.8 MB for old crop and 22.9 MB for new crop year. Soybeans at 79.1 MB and wheat at 19.6 MB. Mexico was the featured buyer of corn last week at 66.1 million bu for this year’s crop and 22.8 million bu of next years crop with “unknown destinations buying another 45.4 million bu of this years crop.

Beans lead the way higher overnight as corn follows while wheat remains unchanged. US corn has been the cheapest source for the world’s feed importers for quite a few months now, however, that is changing with the recent gains in the CBOT market and barge costs as of late.

China is focusing on ways to cater to their own farmers and achieve their own food security. Since their cost of production for corn is below the cash price, they are slowing on imports as their own production is record large this year.

South American forecasts are showing chances of good rains in the next 10-12 days for northern Brazil. Argentina and S Brazil’s forecast has dried up after 1-3 inches of rain fell, slowing their planting progress. Weather seems favorable for great crop potential for now baring any unseen circumstances.

Cattle on feed report to be released tomorrow, Friday, the 25th. Estimates are showing on feed inventory at 99.7%, placements at 95.8%, and marketings at 102.2%.

Feeder cattle closed lower on Wednesday after another run in with relative resistance at 250. Live cattle endured the same action with a slow run to resistance that was met with selling pressure at the 188 range. Neg. fed cattle markets had no movement with no one showing any interest.