Grains trade mixed overnight.

Mixed grain trade for this morning, as export sales data typically released at 7:30 a.m. on Thursdays, is delayed until Friday because of the Independence Day holiday. The grain trade is trying to gauge how much improvement there will be to the US corn, soybean and spring wheat crop conditions next Monday following recent rains. The uncertainty over Central US weather in yield prospects do the variability is keeping the market choppy.

South American FOB corn premiums have been rallying since Friday, July 30, Brazilian August/September corn premiums have rallied $0.40-$0.50/Bu on record large export demand. Argentine offers have followed Brazil, with US Gulf offered at $0.70 over. The $0.20/Bu difference between the new crop Brazilian corn and US Gulf corn spread is the narrowest for this year, which helps support corn values below Wednesday’s lows. This should produce solid support in the $4.80 range for the time being.

Brazilian soybeans for September are offered at three cents over the board versus the US Gulf at $1.20 over. US soybeans and products are not competitive in the world marketplace compared to Brazil until October.

Growing concern on crop stress is worsening through the Canadian Prairies and the Dakotas amid the weather forecast of limited rainfall, but cooler temperatures than normal are helping crops, but rain needs are immediate with the reproductive stage at hand. Oats futures were sharply higher yesterday and overnight, and support in the hard wheat values was also prominent in the night session.

Live and feeder cattle futures closed lower on Wednesday, with a steady to weaker outlook offered for today’s session. Live cattle were under pressure from the outlook for weaker cash prices this week, and corn prices found a value just under 5.00, which weighed on feeder cattle. Negotiated fed cattle markets are quiet, with the outlook no better than steady for the rest of the week. Box beef values were lower on Wednesday, with choice down $6 and select down $2. As corn prices declined, the nearby cattle/corn spread has rallied to an all-time high in recent weeks. The spread between nearby corn and deferred live cattle futures has swelled to more than $2000/head this week.