Ukrainian air defense missiles were to blame from Poland strike.
Grain futures tumbled overnight, giving back the explosive rise that was created late in Tuesday’s session on fears Russian missiles landed into Poland, killing two civilians, and would trigger a NATO response. It’s been reported overnight that the missiles that caused the damage were Ukrainian air defense missiles that were misdirected. This heightens the headline risk that the grain trade has constantly been flipping nearly daily over. The extraction of premiums from the grain trade reflects that the Safe Grain Corridor is still in the works. Note that French milling wheat made new 60-day lows overnight.
Russia did indicate at the G20 meeting that it favors extending the Ukraine grain export corridor with progress being scored. The market is working on the assumption of the continuation of the corridor. Still, it is being determined about additional Ukrainian ports being added and whether the agreement will be extended for a year rather than 120 days.
Weather forecasts in South America shows the Brazilian forecast continuing to improve, with most crop areas being wet into December. Argentina has a chance of rain this weekend with totals of .2-1.50”, but most amounts will be under 1.00”. High temperatures are in the 80s and low 90s, which is seasonal.
Live and feeder cattle continued weak yesterday, with a steady opening anticipated. The sharp rally in the grain trade during the noon hour ahead of the cattle close pressured feeder cattle to significant losses, which may find recovery rallies today. Limited demand for Fed cattle was shown on Tuesday, with show lists in the South being offered at $151-152. Cattle slaughter for Monday and Tuesday put the mid-month cattle kill at 1,596 Mil head, up 3% from last year and the largest mid-month slaughtered rate since 2001. Despite the large kill, the choice cutout value is still the second highest on record for mid-November.