Metals continue to push into new all-time highs.

Overnight trading carried forward the bullish momentum from Monday, with corn, soybeans, and wheat all maintaining modest gains. A key driver this morning appears to be renewed interest from managed money, spurred by a renewed decline in the US dollar. Safe-haven buying has taken hold across multiple markets amid rising tensions between the US and several Central American nations. Gold surged past $4,500 an ounce, and silver surpassed $70, underscoring heightened uncertainty.

In the grain markets, improving export demand continues to underpin support. Corn and wheat exports are running well ahead of last year’s pace, and soybeans are now starting to gain traction. Corn demand is up 30% over last year and year to date has usage at 956 Mil Bu. Ethanol margins are holding at $0.10/gal. There will be no Brazilian exports until July. While volume remains thin, short covering provides additional support to the board.

Traders are also monitoring South American weather more closely this morning, particularly in Brazil, where some models indicate a developing high-pressure ridge next week. At present, conditions are generally favorable, although pockets of stress are emerging, particularly in southern Argentina.

Early soybean harvest has begun in Brazil, but progress is still limited and hasn’t yet affected production expectations. Meanwhile, escalating conflict in the Black Sea is diverting export demand away from the region and toward U.S. suppliers.

Outside markets are mixed: crude oil is range-bound, the U.S. dollar is under heavy pressure, and equity futures indicate a mixed open. Traders will also be watching for the Quarterly Hogs and Pigs report, scheduled for release at 2:00 p.m. today. The market will try to resist the Turnaround-Tuesday pattern that tends to occur, but may struggle with holiday volume.

Live and feeder cattle prices reacted higher yesterday morning to the December Cattle on Feed report, but late in the session softened to settle out near the lows of the day. The cash feeder index increased by $0.73 to $351.91. Feedlots will seek to sell higher this week, but Packer demand will be reduced due to the New Year’s holiday next week.

Box beef values had Choice gaining $1.24 while Select picked up a strong $4.67. It is notable that over the past three years, the spread between select and choice has been more than $30, but this week it is $12.18. Tight supplies have supported the select value, and compared to a year ago, choice beef is up $ $43 while select has climbed $62.