The grain trade this morning is the reverse of yesterday's close.

This morning’s grain trade is reversed from yesterday’s closing, with wheat leading the weakness while soybeans were firm on strength in soybean oil. Veg oils overnight gained, with canola, palm oil, and rapeseed all moving higher on follow-through action from yesterday's strength.

Malaysian palm oil rallied 60 ringgits overnight, scoring another new seasonal high at $0.49/pound. Canola values continued to add to their gains after having made a significant low in mid-September on the Chinese/Canadian EV tariff fiasco. Soybean oil is now 42% of the bean crush, with crush values at $1.70/Bu. Soybean oil has become friendly technically on the charts.

EIA energy data this morning should feature stable weekly US ethanol production of 315-318 Mil gal, versus 306 Mil in late October a year ago. Crude inventories continue to build seasonally, which can continue into February/March. Implied US ethanol export demand stays elevated. Brazilian FOB ethanol is offered at even money in the world with US, which is unusual during the autumn months. Typically, you’d find Brazilian origin much cheaper.

This morning’s US forecast is wetter across the eastern Plains and Midwest, with inundating rain projected from October 31 to November 6. Cumulative totals of 3-5″ look to spread across TX, E OK, E KS, MO, IA, IL, and WI. Up to 7+ inches are possible in E KS and E OK. If the NOAA/model guidance verifies, the drought will nearly end in the eastern portions of Kansas, Missouri, and Iowa, along with Western Illinois.

Live and feeder cattle futures turned lower on Tuesday and closed under heavy selling pressure, with the weak opening anticipated this morning. After December, live cattle set a 3-month high, and early trade turned lower on reduced fund demand. Negotiated cash markets were quiet, but some very limited trade was reported in Nebraska at $189-190 which was steady-$one lower. Significant volumes are not expected until later this week.

Box beef values turned lower on Tuesday, with choice tumbling from $2.89 to $320.61, while select was off $2.22 and $289.96. The choice/select spread was also a little lower at $30.65/CWT choice premium but was still higher for the week. The spread has picked up $19 since its early September low. December cattle have stalled at long-term resistance projected in the $188.25-190.00 range, as fund buying in the last five weeks has been historically large. Technically, a correction is due to such length applied by buyers without intent to take delivery. Strength must come from the cash market or December cattle could correct to the $183-184 range.