Grains are consolidating and recovering from early week losses.
Grain futures consolidated overnight and found morning buying interest after recent rains that have passed have forecasts now projecting another lengthy period of dryness for KS, NE, SD, and W IA along with IN. US weather continues to remain important well into the opening days of September, and 1-2 additional rain events are still needed for the C Plains and W Midwest. Even after recent rain in NE and IA, the 30-day precipitation totals are only 20-50% of normal.
As more additional vessels are scheduled to arrive in southern Ukraine, the recent movement of ships is giving confidence to the marketplace regarding the recently established export corridor. Still, many are wondering if European feed importers will begin to view Ukraine as a more reliable exporter of corn via the sea. Inland shipments from Ukraine into E Europe have been ongoing, but it is difficult to match the tonnage made possible by oceangoing vessels. So far, most Ukrainian vessel destinations have been heading towards Africa and the Middle East.
Weather forecasts in Europe which had been hoping for some upcoming rains, are seeing forecasters trimming back the potential. After showers that impact E France and Germany this weekend, totals are now just pegged at .50-1.00”. Warmth and dryness return to the whole of Europe and the Black Sea region in the 6-15 day period, with temps in France, projected back into the upper 80s/low 90s next week.
Rains are now exiting the W Midwest, and a drier pattern starts to resume across Central/Northern Plains and the W Midwest. Fortunately, temperatures in the next week show no extreme heat. Both the EU and GFS models have heavy rainfall impacting the southern Plains and Delta region throughout the next 5-6 days with cumulative totals there of 4-7”. TX/OK panhandles anticipate 1-3”. The 11-15 day guidance keeps an arid pattern intact across the Plains/W Midwest into September 1.
Live cattle and feeder cattle enjoyed a strong performance yesterday, parking close to recent highs with a firm outlook anticipated for Wednesday’s opening. The cash cattle trade was limited in Nebraska, with light sales that were steady to $1 higher at $146. The rest of the Plains cattle remained quiet, but the early week outlook remains firm. Feedyards are anticipating a potential gain of $1-2 this week.