It’s a mixed morning for trading, wheat again pushed to a new low by a few pennies, just to recover to settle out mixed in the morning. Meanwhile, corn and beans are fractionally softer. The Pro Farmer crop tour continues to find big yields, which is unsurprising. Though they might miss USDA estimates, this is starting to alter managed money's interest in the market. Cash buyers are also paying closer attention to updated yield reports and projections as harvest approaches.

Soybeans were hit hard yesterday by news that the Philippines was suspending its biodiesel mandate, a move that will impact world vegetable oil supply and demand. Fresh news is again limited, keeping a lid on futures this morning. Meanwhile, Bloomberg News also reports that the EPA could soon announce the long-awaited Small Refinery Exemptions for the RVO and US green diesel industry. It went on to state that based on Pres. Trump’s history in his first administration and granting SRE’s, it’s expected that waivers will be provided. The comment period had ended on August 8. Any new EPA SRE ruling will likely be challenged in court.

Day 2 of the PF Crop Tour ventured into Nebraska and Indiana. The Nebraska corn yield is estimated at 179.5 bushels per acre compared to last year’s 173.25 bpa. The USDA currently has Nebraska’s corn yield at 192 bpa. The Indiana corn yield was estimated at 193.82 bpa, up from last year’s 187.5 bpa. This is the highest corn estimate for Indiana since 2003. The USDA currently has Indiana’s yield at 205 bpa. Historically, the crop tour underestimates Nebraska’s yield by 14.1 bpa and the Indiana yield by 4.5 bpa. Soybean pod counts were also higher than a year ago in both states.

The weather is non-threatening, primarily with cooling temperatures starting this weekend for much of the Corn Belt. Cooler temperatures do not mean added precipitation for dry areas, but they will temper evaporation. Crop reports will be key in today’s market movement.

Yesterday, feeder cattle pushed on to new contract highs, encouraged by the cash feeder index, which gained $2.81 to a new high of $344.98. Live cattle did not experience the same push and stalled at recent highs, closing mixed. The market is awaiting Friday’s Cattle on Feed report due out at 2 PM CT with expectations of On Feed 97.8% of a year ago, Placements 89.6% and Marketings at 94.4%.

Boxed beef prices had another strong burst to the upside yesterday, with choice gaining $2.96 to $407.20, and select was also higher by $2.62 at $379.76. This has the outlook for cash this week firm to possibly steady higher prices again. October live cattle continue to struggle against its recent high at 232.75, needing a close above 233 to continue momentum or risk index fund liquidation on lack of momentum compared to the feeder cattle. Meanwhile, October feeder cattle are targeting a measured move of 358+ or minus a few bucks. Intra-day volatility remains high, with $6-7 dollars trading range not uncommon.