Wheat and beans turn higher in the early morning trade.
After a mixed overnight session, the grain trade firmed in the early morning hours as French milling wheat recovered its losses. Malaysian palm oil futures rallied 129 ringgits, and Dalian soymeal in China was up $5/MT. Turkey purchased 535,000 MTs of Russian-origin wheat at $297-307/MT, including cost/freight. This price reflects a higher price floor over a week ago and suggests Russian wheat is available to neighboring countries despite late spring/summer shipments that are in question after May 17.
Yesterday afternoon’s winter wheat crop ratings across the Southern Plains were mostly steady to lower from the prior week. The crop in KS on Sunday was rated at 19% GD/EX, which was unchanged from the prior week and compared to 32% a year ago. TX crop was lowered from 23% last week to 18% GD/EX, with Colorado at 28% versus 36% last week. It is getting to the point where below-trend HRW yields could become unavoidable as complete dryness and warming temperatures look to be experienced through the end of the 15-day forecast on April 11. There is also a growing concern that the exceptional plains drought could trim corn seedings due to the lack of water for needed germination.
Central US precipitation overnight was confined to the Gulf/SE with current temps in the 20s/30s across the principal Midwest, with single digit/sub-zero lows noted in SD, MD, and MN. Above-normal temps appear to be arriving for the primary Corn Belt beginning Friday, with max temps in IA/IL next week projected in the 60s and low 70s. There is no sign of precipitation of any kind in the southern and Central Planes. Heavy snow returns to the Dakota/MN this weekend and again next Wednesday-Friday.
Live and feeder cattle futures found explosive, strong gains yesterday, with liquidation reported in Friday’s commitment of traders report that index funds had cleared out 28,000 contracts of longs in the prior two weeks of selling while end users accumulated over 25,000. Early week outlook for the cash cattle trade is $1-3 higher. Box beef values had choice gaining $0.48 and select up $0.97. The choice/select spread narrowed to $10.64 choice premium.