Grains firmer on outside markets and disappointing rain fall in SA.
Light rains totaling under an inch fell across the producing areas of Brazil yesterday. Argentina however received nothing and saw temps up to 105 degrees. Forecasts continue to show light to moderate rains for Brazil but not for Argentina where more rain is much needed.
Outside markets are seeing buying today after being lower yesterday. French milling wheat and French corn futures are all higher on the session. Malaysian palm oil is seeing its highest levels in 8 weeks tugging our soybean complex market along with them.
Brazil has been exporting corn at a record pace for the month of December. Cutting their stocks down to around 4 MMTs. US ethanol demand will start its seasonal downturn soon which will lead to us showing a higher bottom line in stocks than anticipated in the next WASDE report. We are showing that there is less ethanol being produced according to the EIA reports.
The anticipated way below freezing temps are still projected for the plains where there is no snow cover and when wheat will be vulnerable to extreme stress in the coming days with a large warming cycle coming through at the end of month finally.
Feeder cattle recovered its losses yesterday with a firm outlook today. Choice/select spread values widened to a historic level of $31 choice premium. The cattle on feed report on Friday is showing estimates of 101% marketed, placements of 96% and on feed at 97% of last year. This would look to be the largest year-over-year decline in cattle on feed inventory in almost a decade.