Corn stalls under 5.00, wheat stalls at 20-day MA.
Grain prices are mixed this morning, with soybeans seeing follow-through buying interest from yesterday’s strong close, while wheat and corn retreated after corn challenged 5.00, and wheat challenged the 20-day MA on yesterday's strength. Due to low Mississippi River water levels, US soybean exports have moved to the PNW from the Gulf. Barge freight on the rivers is coming down, which is helping to strengthen basis levels.
The September Jobs number released this morning was higher than the 170,000 job increase, coming in at 336,000. The unemployment rate was put at 3.8% on an estimate of 3.7% due to participation. This has analysts thinking the Fed will certainly raise rates in November by a quarter percent, but the US dollar rose back up to the 106.50 range and did not make new highs as of this morning near 107.
Ukraine officials indicated that Russia continued drone strikes overnight in Kharkiv, which destroyed a residential building. Other areas under attack include Odesa, Mykoaiv, and Izmail. Yesterday, a sea mine produced minor damage to a Ukrainian cargo ship in the Black Sea, with the bigger question being rainfall right now is 8244 were up $0.75 already were up hundred 50 bucks whether Russia has mined the late quarter that Ukraine is trying to use or not.
The Australian Weather Bureau indicated that September was the driest on record. Recent rains that just fell across the far SE Australian region did little to aid the deepening drought. Meanwhile, Argentina remains in a dire drought that shows no sign of ending over the next two weeks. Southeast Brazil will endure more flooding rain with the 10-day totals of 3-9.00”. The rain will produce a new round of flooding while below-normal rainfall falls across Northern Brazil as the bean crop continues to see further delays and likely replanting of earlier beans that were put in in mid-September. Spring weather across the southern hemisphere is not starting out for even trend line production potential.
Thursday’s trade for live and feeder cattle was lower, as live cattle made new lows for the move but closed that midpoint of the session. November feeder cattle are held in a narrow range around the 100-day MA. The cash feeder Index was down $0.45 on Thursday at a three-week low of $251.45 and remains above both October and November futures. Negotiated cattle required on Thursday had sales still mostly $1 lower at $182 in the South and $183 in the North, but compared to last year, they are higher by $36-38/CWT. Box beef prices were mixed yesterday, with Choice gaining $1.00 but still below $300, and Select was off a dime. December live cattle may be targeting the 100-day MA near $183.00.