Soybeans make new lows on the week.
Grain futures are mixed with strength in the wheat led by Iraq seeking a wheat tender this week from either the US, Australia, or Canada specifically, with the limited number of participants invited. The key will be whether Iraq opts to purchase 300,000 MTs, and part of this tender should be filled with US origin. Soybean prices moved lower again on rain returning later today and into the weekend in Argentina, while corn splits the difference on whom to follow, as Argentine rainfall in the latter part of February is needed to be confirmed for the crop to be off to a good start.
The Indian government announced they would offer 3 MMTs of reserve stocks of the domestic market to quell soaring prices as prices have moved to new record highs this past week. Indian wheat inventories will be drawn down ahead of a record crop that begins harvesting in 60 days. India’s spot cash wheat is at $9.50/bu in US dollar terms.
Brazilian storage is now becoming a debate as limited investment has been placed into bins/storage bags in recent years. It’s anticipated that just over half of the crop for soybeans and corn will have bin space, promoting early cash sales. Combined corn, soybean, wheat, and cotton in 2023 will reach over 290 MMT versus 256 MMT a year ago.
Overnight rainfall in the amount of .60-1.20” was recorded in a small area of Santa Fe. It’s anticipated this coming weekend that another 1-2” of rain will fall across Córdoba and Santa Fe in Argentina into early next week before a drier pattern resumes. Additional precipitation will be needed into early March, but it remains that the 10-day totals ending for Jan 30th will reach upwards of 3.00-3.50”, which is near average for the entire month. The improvement of soil moisture also helps prevent the return of heat nearby.
Live cattle extended gains on Tuesday while the feeder cattle market was mixed due to the strong rally in corn prices. A steady start is anticipated again today. Negotiated fed cattle are at a standstill with limited demand. Packers are holding out because of the recent decline in box beef pricing and would like to pick up cattle lower. Box beef values had choice down a $1.80 while select moved lower by $2.10. The choice/select spread rose by $0.30 to $17.25 choice premium.