Grain futures turned sharply lower on Sunday night, as President Trump’s speech in Des Moines did not include any new trade deal announcements beyond Vietnam securing a trade deal with them. No grain-specific purchases were announced in Vietnam other than the fact that Vietnam does not have tariffs on US purchases, encouraging competitive pricing between the US and South America. Our currency weakening helps in our outlook, but not any immediate specifics.

Grain prices are also lower due to improved weather, and the prospects that crop ratings this afternoon should hold steady or possibly even improve. Given that such high ratings still remain early in the season, which will naturally decline later in July, national average yield trends in corn for the first time over 180 BPA are becoming more likely.

US Treasury Secretary Bessent stated that we will have several trade deal announcements over the next several days. Many other countries are being sent letters stating that if they do not have solid plans in place by July 9, their tariffs will go up on August 1. These announcements were made on Sunday when he appeared on several Sunday talk shows.

The weather forecast remains optimal for the Midwest, with no blocking high indicated by any high-pressure ridging that could spark a long period of hot, dry weather into late July. Forecasts for rain have showers across the Midwest and the Plains into July 22. Temperatures are going to more seasonal levels in the 70s-90s. Forecasts for Western Europe are improving, while the Black Sea area remains dry with rising temperatures. Ukraine’s corn production remains in question.

Cattle futures finished strongly last week on Chinese trade announcement hopes and are anticipated to open lower on live cattle this morning, with feeder cattle gauging those losses alongside weakness in corn. Last week’s negotiated trade developed with live trade in the South started soft but mainly ended steady at $224-225. Meanwhile, the North's live sales were $230-234, steady at $4 higher.

Due to the holiday, cattle slaughter was off sharply to 475,000 head, the smallest since USDA began reporting data in 1990. Box beef values did drop last week, with the choice losing $6.74, due to weakness in the loin and rib primal market. Last week’s support continuess to arrive at the 50-day average, presently near 210.