Soybean oil again weighs on soybean prices.

This morning’s grain trade saw firm corn and wheat during the night session, while soybeans remained under pressure due to losses in soybean oil. Weakness developed in the morning session after President Trump tweeted that China was violating the recently updated tariff rules. This took the momentum out of the overnight strength.

Export sales numbers released this morning were lower than the prior week but still reflect stronger demand than the same time last year. This maintains the expectation that the upcoming WASDE report will necessitate upward revisions to export projections for both corn and soybeans. Soybeans are in the red this morning, with continued pressure from weak soybean oil. Crude oil is also softer today, adding additional weight to the bean oil complex.

There are rumors that the EPA is preparing to decide on the release of Small Refinery Exemptions for 2024. A Reuters report overnight contributed to the decline in soybean oil prices and dropped the value of D6 RINs to $0.90.

Weather models this morning continue to show improving planting conditions in the United States, as well as better harvest progress in South America. In the U.S., market focus remains on the wet Eastern Corn Belt, where corn planting delays are concentrated in Ohio and areas to the south. Although fewer corn acres are expected in that region, reports of increased planting in the Western Corn Belt are limiting market reaction. The prevent plant date for corn is now just one week away, and with current market values below breakeven for many growers, this could become a more significant factor.

In China, the northern plains remain dry and have yet to receive the rain needed as the wheat crop nears harvest. Meanwhile, excessive rainfall is impacting the central and southern regions of the country.

Live and feeder cattle futures saw a strong recovery yesterday, returning to the best levels of the week. The cash feeder index rose by $1.91, reaching $297.75. Cash trade also got underway with higher prices. In the North, dressed sales were reported $6 higher at $368, while live sales in the South were $2 to $3 higher at $222. Post Memorial Day restocking appears to be supportive, allowing boxed beef values to hold firm. Choice cuts added another $0.67 yesterday, bringing the weekly gain to $4. Select cuts made a sharp late-session jump, showing a gain of $2 for the week.

The Actual Slaughter report showed steer carcass weights for the week of May 17 dropped by 7 pounds, matching the annual low of 938 pounds. The year-over-year difference has now narrowed to 17 pounds, the smallest gap so far this year. Compared to the five-year average, carcass weights remain 41 pounds lighter, which is a record difference for mid-May.

The steep discounts between futures and the cash market remain intact, and each week that strength is maintained adds more buying interest to the complex. Bull markets climb a wall of worry—and the cattle market continues to reflect that dynamic.