Grains are consolidating yesterday’s gains heading into the weekend.

Futures are trading mixed/steady this morning as a lack of fresh headlines continues to limit buying interest. While we did see a return of flash sales for corn yesterday, the continued absence of China from the daily announcements is weighing on sentiment.

China did step in to make some soybean purchases following the recent trade agreement, and there have been additional cargoes booked since. However, total reported purchases only amount to about 2.25 million metric tons, still far short of the 12 million metric ton target that was floated in earlier discussions. Adding to the confusion, Treasury Secretary Scott Bessent stated in an interview that the deadline for those purchases is the end of February. His phrasing, “during their season,” has added uncertainty, as it's unclear whether this refers to China’s crop cycle, the U.S. marketing year, or another timeframe altogether.

Until the market gets clearer signals on China’s buying intentions and timeline, it’s unlikely we’ll see sustained strength in futures. Traders are looking for confirmation and clarity, and in its absence, prices remain under pressure.

South American weather remains mixed, with the area in need of rain continuing to expand. In Argentina, corn planting is now running 9% behind last year’s pace, raising concerns about the potential for late-season crop stress.

Positioning is expected to increase today ahead of next Tuesday’s WASDE report. However, December updates tend to be modest, as USDA usually leaves production unchanged. Current trade expectations call for little to no change in corn carryout compared to November, while soybean carryout is forecast to rise by about 15 million bushels. Wheat carryover is expected to see a slight reduction.

The cattle market was led higher again yesterday by feeder cattle, as the Feeder Cattle Index was up $4.02 to $341.80. The Daily number is $347.37. Bids developed yesterday at $218 in Kansas vs. asking prices of $225, while bids are $216 in Nebraska and $335-$340 on a dressed basis vs. $340 plus asking prices.

Boxed beef prices were off yesterday early in the session, but by late in the day, boxed beef was off $0.91, while select gained $2.34. Slaughter numbers as shown as of midweek are off as total for the week at 354,000 head against 369,000 last week and 367,000 head last year.

On the charts, February is breaking away from December, encouraging feedlots to again feed cattle heavier into February and also pricing in a bit of rough weather concerns into the winter. Targets on the continuation chart for February cattle, the lead month, show that a 50% retracement occurs at 226.00. Feeder cattle are on fire and targeting a challenge in the 340-348 range. A 50% correction of the whole $83 correction on feeder cattle puts them at 341.