Sunday night's early strength gives way to profit-taking.

This morning’s grain trade is lower in corrective mode after a higher start Sunday evening on follow-through buying from the reversal seen to the upside after the WASDE crop report. On Friday, grain prices failed to respond negatively to the USDA’s lack of crop production to Brazil’s soybeans and corn, but the USDA increased China’s soybean needs by 3 MMTs to a total of 105 MMTs. Brazil’s CONAB will be out with their crop numbers Tuesday morning, and it’s anticipated they will lower their soybean crop again, likely into the 145-147 MMT range, with corn at 112-113 MMTs. The USDA will have much catching up to do as a fast harvest in Brazil implies a smaller crop alongside dry weather ahead of the safrinha corn planting.

Safras & Mercado estimated Brazil’s soybean harvest to be 53% complete on Friday (Mato Grosso 91% complete). Second-crop corn planting is estimated to be 85% complete, and first-crop corn harvest is 46% complete.

Stats Canada was out with their preliminary seeding intentions and acreage for all wheat was put at 27.045 Mil acres, canola 21.394 Mil acres, durum 6.344 and oats at 3.072 Mil acres. The USDA will release US intended acres on Thursday, March 28 ahead of the Easter weekend.

Russia is reportedly targeting Odessa and its grain export facilities in a series of attacks overnight and on the weekend. Ukraine's attacks on the Russian Black Sea fleet appear to be behind the Russian retaliation. It appears that grain markets have become numb to Russian attacks until it’s clear that Ukraine's grain trade has been adversely impacted. So far since the beginning of March, it’s anticipated that Ukraine has exported 1.5 MMTs of combined grain.

Friday’s Commitment of Traders Report showed managed funds sold 1,537 contracts of corn (net -296,795), sold 11,346 contracts of beans (net -171,999, new record), and sold 9,213 contracts of Chicago wheat (net -65,539).

In South America, below-normal rainfall across Northern and Central Brazil is anticipated for the next 10 days. Heat expands into N Brazil with widespread 90s. Meanwhile, near-to-above-normal rain for Argentina favors late-filling corn/soybeans, with highs there in the 80s/lower 90s.

After bolting higher Friday morning to new three-week highs, live and feeder cattle corrected into Friday’s close. Meanwhile, last week noted negotiated fed cattle were quoted $185-186 in all regions, which was $2-3 higher for the week the choice cutout value gained $1.76 and rose to $307.04, marking the second week above $300. Select picked up $1.69 and is priced at $297.43. Both values are at record prices for early March. Estimated slaughter margins fell by $15/head to $67 as cattle prices gained on beef. Margins are now $90/head less than a year ago and at the lowest since 2017. Live cattle are getting heavier as packers are working to control numbers.

April live cattle have moving average support of $186.00, while April feeders close Friday under moving average support of 254.60 with an outside down session on the charts. Feeder cattle below levels tested seven sessions ago of 252.00 would imply a larger setback is in the makings.