Markets struggling with liquidation and lack of friendly input.
A lower night session across the board with only corn trying to find stability, as export sales were strong over the past week for corn in the above expectations of 38.8 Mil Bu fro crop. Weakness in soybeans and wheat is occurring now with the lack of any fresh weather news, and the coming heat and dryness across Central Brazil will become a concern for safrina corn yields if it continues into April. It now comes down to perceptions and estimates for the end of the month Stocks/Seeding's data.
NOAA will release its updated spring and summer US climate forecasts later this morning. Plains dryness in Apr-Jun is expected.
In South America, the weather models agree on the overall pattern and outlay of rainfall, raising confidence in the 10-day forecast. A high-pressure Ridge continues to dominate NE Brazil, producing warm/dry weather for most of Central and Eastern Brazil. This is the primary South American weather pattern feature into early April. Mid-March normally starts a seasonal decline in N Brazilian rainfall, and the forecasts are following thru with that idea. Critical will be rains in April and the first half of May for Brazil's winter corn crop. In Argentina, mostly dry weather will prevail for the remainder of the week before a new system pulls across Argentina on Sunday/Monday, producing .4-1.50″ of rainfall over the northern 2/3's of the crop area. A second system is evident for late next week is weaker and will only produce .1-.7″ across Southern Argentina.
The higher futures trade yesterday for cattle with a firm start anticipated. Cash cattle markets on Wednesday once again traded steady, with sales reported $114 in both the northern and southern markets. The steady trend looks to hold for any additional trade this week. Cattle slaughter at midweek totaled 345,000 head, down 8,000 head from last week and 20,000 head fewer than a year ago. A year ago, packers were raising kills to satisfy the surge in demand at grocery stores. Boxed beef traded mixed with choice gaining $1.54 while select was down $1.18. A low in US beef valuations looks to be forming, with the next seasonal rally to be underway in early April.
NASS will release the March Cattle on Feed report on Friday. Ahead of the report, the average trade estimate calls for a February placement rate of 98% of last year, a marketing rate of 97%, and the March 1 feedlot inventory is expected at 102%. If confirmed, the on-feed figure will be record large for March. Placement rates have accelerated in March.