Wheat futures are lower on large deliveries on the Chicago contract.

Grain futures are mixed this morning, with wheat prices showing losses of 8-$0.10 on large September deliveries. September Chicago wheat had 1,113 contracts delivered, while oats experienced deliveries of 269 contracts, and Kansas City wheat had 168. There were no corn, soybeans, or soy products tendered. The large deliveries and Chicago wheat peeked out new summer lows again for the wheat complex.

Today, Russia said they do not have any progress to report regarding a Putin proposal to ship Russian grain to Turkey for processing and then on to poor nations with Qatar's financial support. The Kremlin blames Western sanctions for African food shortages. IKAR upped their estimate of Russia’s grain production to 140 MMT from 139 MMT in the previous outlook. This includes 91 MMT of wheat, up from 89.5 MMT.

Grain sources indicated that Egypt’s GASC bought a total of 240K MT of wheat in their tender today. This includes 120K MT from France and 120K MT from Romania.

India has confirmed record-low August rainfall, which has harmed oilseed, rice, and cotton crops. The Indian Meteorological Societies are forecasting near-normal rainfall in September, with the seasonal withdrawal of the monsoon slated by late September. Meanwhile, Indian flour and rice prices are holding at historical highs.

Of note is the Australian and South American weather forecasts remain dry for the first half of September. Rain is needed across Argentina and Australia for their winter wheat crops. Soybean planting should start soon across northern Mato Grosso, but delays look likely as they await rainfall. This has the potential for US exports to extend beyond mid-January for soybeans.

All forecast models maintain an extended period of hot and dry weather for the Central US. There is no evidence of a return of near-normal rainfall in the middle of September. August started with an improved rainfall pattern but reverted back to drier on August 14, and forecasts have been arid since. Little or no rainfall is forecasted now through the US holiday weekend, with a few possible showers in the Northern Lakes states at the end of next week. The large crop areas of Central US will stay dry for most of next week with near-record heat daily. Today is the last mile day in the Central US.

Live and feeder cattle futures turned sharply lower yesterday, with a steady weaker opening anticipated. Cash markets were quiet on limited demand, with a small number reported sold in IA/MN on Wednesday. Their sales were quoted at $186, with dressed sales steady at $292-293. Elsewhere in the Plains asking prices are quoted at $181-182. Slaughter through midweek totaled 375,000 head, which is up 11,000 from last week and 2,000 head less than a year ago. Box beef values were mixed yesterday, with choice gaining $0.75 while select drifted $0.15. Cattle futures are following a very congestive pattern since peaking in mid-July. The seasonal tendency for cattle is to flounder into September before strength returns in October.