Corn set for the highest weekly close since mid-June.

This morning’s grain trade is mixed, consolidating recent gains on a Friday settlement. If corn can close over 450, this will be the highest spot weekly close since June. Export sales numbers out this morning were considered strong, with soybeans just under 1 MMT and corn near 1.7 MMTs. Without China buying, corn sales continue to be strong despite thoughts of frontloading ahead of the Trump administration.

In yesterday’s action, open interest in soybeans was down by 10,414 contracts. Soybean meal fell by 15,398 contracts, while soyoil rose 2,435 contracts. A lot of switching of open interest from January to March occurred yesterday.

The January 10 crop report is also on traders' minds for the new year, and the prospect of corn and soybean yields getting lowered again is being debated because of the dry fall. Also, the strong continual export pace beyond frontloading has some thinking that the corn carryout can fall below 1.7 Bil Bu by a combination of yield and export changes.

Weather in Argentina offers below-normal rainfall for the next 10-12 days, with some shower chances early next week. Temperatures will warm to above normal after January 2, and highs will be in the mid-80s to mid-90s, which will quickly increase the need for rain. Argentine crops currently hold soil moisture for vegetative growth but yield concerns will develop after January 10 if rains start to miss.

Yesterday was another strong, explosive day, with feeder cattle leading the way. At the close feeder, cattle are still under strategic resistance at 260.00-260.50. A close above that level is needed to spark renewed technical buying interest. A small number of cattle reportedly traded $1 lower in Kansas at $190, but overall trade was light. Packer bids in the north were quoted at $190 live, which is $5 lower, while dress bids were steady at $305. Feedlots are all passing, and asking prices were quoted at $310 in the north and $192-193 in the South. Box beef values were sharply higher on Thursday, with Choice picking up $4.41 at $320.39 while Select gained $2.02 at $288.77. December cattle closing yesterday at $192.80 indicates the cash trade will occur at higher values this week.