This morning’s grain trade is higher, with December corn trading over 400 despite the USDA’s big, beautiful 16.742 billion bushel corn crop forecast. Demand is the focus, and the world stocks to use for corn is 9.2%. It's not exactly comfy if South America has difficulties this winter. Demand is noted on corn this week, with thoughts that the USDA will lower the yield in the next report.

Yesterday CONAB and ABIOVE updated their Brazil production estimates with larger numbers, especially on corn in Brazil. Even with an increase in production, forecasters do not see elevated Brazil corn exports though interior demand consumes this added production.

The NOPA soybean crush report (Crush est 191.59 mbu) will be released today at 11:00 a.m. CT, and trade expects a build in usage from June.

Weather forecasts are adding in heat for the Midwest, bringing a little risk to buying the market this morning. Market bears have a prominent position to defend and will need a steady supply of news to maintain market pressure. We are starting to see a little more attention on demand, giving futures some much needed support.

This morning, all eyes are on the scheduled meeting between President Trump and President Putin in Alaska. While not directly tied to commodities, developments could impact the outside markets, pressuring commodities in turn.

The Pro Farmer crop tour is next week, August 19-21. The trade will be looking for consistency and potentially large corn and soybean crop yields. With such a large acreage base, the yield is more than just central Illinois and central/eastern Iowa; it’s about the fringe states producing record yields to help attain a 188.8 BPA on beans and a 53.6 on beans.

Live and feeder cattle futures opened steady-firm yesterday but softened during the day. A late session break occurred when it was announced that Secretary of Agriculture Rollins would be having an announcement today at 11:00 a.m. to give an update on the New World Screwworm and how it affects the US/Mexican border and the importation of feeder cattle in the future. The outcome of a timeline will affect deferred feeder cattle as to any anticipated opening date and how fast numbers are expected to increase on a monthly basis, with likely extreme protocols for protection.

Yesterday, the negotiated fed cattle trade was steady-higher in the north, with live sales quoted at $245, which was $1-2 higher than last week. Bids in the South are at $233, which is $1-to lower than last week, and for now are being passed. Box beef prices had choice jumping $3.30 to $293.79, and select was $1.08 lower at $366.88. A close below 340.00 on the September feeder cattle would put the contract below last Friday’s close and Monday’s supportive reversal recovery close. This would set up a larger decline and imply Thursday, August 7, put in a significant high at 350.20. October live cattle closing below 226 would attain the same negative technical result.