China does loosen Covid policies.
Grain futures recovered sharply overnight along with additional strength in energies, metals and equities as China did move to slightly modify its Covid rules. After denying rumors since last Friday, China moved forward to shorten the quarantine time by two days instead of the present five days for close contacts and foreign visitors. China also ended circuit breaker penalties for airlines, and it said it will stop tracing secondary contacts. The loosening of covert restrictions was the first in nearly 3 years and Asian markets are sharply higher on this. This does not mark an end of China’s 0% Covid policies, as infections are still on the rise and additional lock-downs can be expected in various reasons until late winter/spring.
Meetings have occurred in Geneva, Switzerland with Russian high-level delegates working with the UN and Ukrainian counterparts. Russia is continuing to press for one of its state-owned banks to be cleared of sanctions to facilitate Russian trade and fertilizer in grain. The Kremlin has confirmed that a mutual understanding of the problem, with work underway. The current record or pact expires on November 19 so the negotiation time period is now down to a week.
Weather modeling from both the EU and GFS show a 10-day forecast of near normal rainfall and temperatures across both Brazil and Argentina area following a wet weekend and Argentina a new 5-7 day dry and warm. Begins. This dryness complicates whether an improving weather pattern is evolving for Argentina. The Brazilian forecast is more favorable with daily chances of rain fall through the crop areas into late November. High temperature readings are in the normal range of 80s and lower 90s. Argentina is struggling in a flux with La Niña possibly coming to an end or not, models will have to be closely monitored in the coming weeks.
Live and feeder cattle had a higher trade on Thursday with a mixed open offered for this morning. The break-in corn yesterday allowed feeder cattle futures rally with January closing above technical resistance of the 50-day moving average for the first time since the beginning of September. Negotiated cash trade for Thursday was mostly steady with last week with sales Nebraska quoted at $153 with the IA/MN region seen trades at $153-154. Sales in the southern plains were mostly at $149-150.