Grain prices recover from Friday's washout.

The market is seeing a moderate rebound this morning following last Friday’s negative reaction to the November WASDE report. While the numbers were not outright bearish, they fell short of expectations, prompting profit-taking on long positions heading into the weekend.

Although the data wasn’t strongly bullish, the reduction in U.S. soybean carryout to 290 million bushels was supportive. This marks the tightest U.S. stocks-to-use ratio in three years and the fourth consecutive monthly decline in ending stocks. Global soybean carryout also came in below trade expectations, offering additional support. On Friday, the market was just hung up that the flash soybean sales only showed 800,000 MT of Chinese bean purchases so far.

On the corn side, the U.S. yield was trimmed to 186 bushels per acre, a smaller cut than many had anticipated. Still, global fundamentals provided the most support, with world corn stocks down 10 million metric tons from last year and down 34 million over the past two years.

Wheat offered little surprise, with no major changes to shift the narrative. Now that the report is behind us, market attention will shift back to South American production and demand, which will play a leading role in daily price discovery going forward.

With the holiday season approaching, trade is beginning to thin out, and year-end positioning is coming into focus. Attention is also turning toward the final U.S. production and quarterly stocks numbers due out in January.

One other development worth noting this morning is news that the White House plans to roll back some tariffs to help lower consumer costs. While this is seen as a short-term positive for overall market sentiment, it also raises concerns that removing tariffs across the board could undermine previously negotiated trade deals, particularly in agriculture

NOPA releases its October member crush estimates at 11:00 a.m. CT. The forecast should be for a record-large crush at 208-210 Mil Bu, with soy oil stocks around 1,275 Mil pounds.

Even though cattle futures recovered on Friday into the close, it was still a down week on cattle futures. A lower start is anticipated this morning as Pres. Trump removed the 10% reciprocal tariffs on all beef imports, as anticipated on Friday, but the sharply lower open run on Friday was based on the belief that Brazilian tariffs were being completely removed. As of now, that is not the case. The question now is if today’s price action can confirm that 215 is significant support for spot cattle and 310 for January feeder cattle can hold. November feeder cattle expire on Tuesday, with the feeder index still trading north of 340.

Last week’s cash cattle market was lower with sales in the north at $222-225, which was off $ $3-6. Live sales in the South were $3 lower at $228. Cattle slaughter was up 16,000 head at 576,000, the largest weekly kill since June. It was still 33,000 head lower than a year ago. This weighed on box beef prices along with extremely heavy carcasses. Weekly cash cattle prices are on the decline and tend to bottom by the first week of December.