Spread action flips overnight with soybeans firm and grain softer.

This morning’s grain trade reversed last week’s action via spreading. Soybeans are bought, while wheat and corn are sold. We are heading for the first notice day for the December grain contracts, which is Friday, and liquidation is noted on the December corn and wheat. One concern is that there are 271,000 contracts of corn open interest as of Friday, and typically, by first notice day, that open interest is down to 20-40,000 contracts. With sizable liquidation ahead in the next three sessions, corn strength will be revealed by end-users.

Soybeans are finding support as cash trade talk is that China’s SinoGrain was the buyer of US soybeans for February late last week and on the weekend. The trade will be watching the daily flash sales announcements for confirmation. Soybean purchases right now are likely politically tied to the incoming president placing tariffs on China. Some think that if tariffs are placed, China will cancel the soybeans and blame them on Pres. Trump. Soybean oil found support as January Malaysian palm oil bounced 53 ringgits amid rumors that Indonesia may boost its export tax.

President-Elect Trump has finished filling much of his major cabinet positions, with both the Treasury Secretary and Secretary of Agriculture announced late Friday and over the weekend. Scott Bessent, the pick for Treasury Secretary, is a hedge fund manager, having worked as a partner at Soros Fund Management before founding his own global macro investment firm. According to analysts and traders, Bessent has experience investing in China and is seen as a bit of an ‘antidote’ to some of Trump’s more aggressive trade policies. Over the last few years, he has championed a more gradual approach to tariffs and is also considered a steadfast fiscal conservative who will push for reduced government spending.

Our new nominee for Secretary of Agriculture is not who was initially reported, with former Georgia Senator Kelly Loeffler out of the running early Saturday morning and Texas native Brooke Rollins in. Rollins grew up on a farm and participated in 4-H and FFA in her youth before attending Texas A&M and graduating with an ag development degree. Rollins went on to get her law degree before moving into politics and running a handful of influential conservative groups. Though her career experience in agriculture seems to be lacking to a certain extent, her farm roots appear to run deep, as does her desire to push “American First” policies.

Trump’s transition team is wasting little time rolling out policies and plans for day one. This morning, we got some insight into their initial approach to energy policy, with Trump reportedly planning to move quickly on offshore leases for bidding, expediting permits for drilling on federal lands, repealing some of Biden’s clean power plan, focusing on natural gas, with thoughts he will also ‘confront’ the International Energy Agency and their focus on green energy only. In addition, he plans to seek money from Congress to replenish the Strategic Oil Reserve, which Biden used during the initial stages of the Ukrainian invasion but has been somewhat slow to refill.

In other news, weekend developments between Russia and Ukraine were relatively limited, with more drone attacks and hits to Ukrainian ports and energy infrastructure reported. From a cash market standpoint, Ukraine and Russia have been offering grain into the world market at relatively low prices as they work to expedite shipments ahead of winter.

Last week, live and feeder cattle were higher, with nearby December picking up $3.80, while January feeders jumped over $7.00 for the week. The November Cattle on Feed report was deemed slightly bearish, with the placement numbers at 105% versus 103.5%. Initial thoughts of a lower start are being switched as reports of the Mexican government has notified the US over the weekend that he has found incidents of screwworm, which may close the US border to Mexican bovine imports for at least 30 days. Details are awaited for more information.

Last week’s cash trade in the north was higher by $2-3 and quoted at $187-188, with dressed sales mostly at $ 290, which was $one higher. Live trade in the South was $2 higher for the week at $187. Cattle slaughter rose by 25,000 head to 631,000, the most since February and the second-largest weekly kill of the year. Box beef values were sharply mixed last week, with choice gaining $4 while select was off $4.