A mixed trade to start Turnaround-Tuesday.

After mostly higher evening sessions, wheat and corn prices turned softer in the early morning hours as French milling wheat fell upon reopening after the Easter Monday holiday. French milling wheat hit a new calendar-year low, dragging our wheat values lower.

As of Sunday, corn plantings were at 11%, soybeans at 7%, and spring wheat at 14%, all slightly above their respective five-year averages. Meanwhile, the winter wheat good-to-excellent condition rating held steady at 40%. U.S. farmers are expected to have 25% of the corn and 20% of the soybeans planted by next Monday.

Although U.S. trade deals have been discussed since the tariffs were imposed, they have not yet been finalized. South Korea is proposing to secure more U.S. soybeans, while Vietnam and Thailand are proceeding cautiously with deals to avoid harming other nations. U.S. farmers are hopeful that non-Chinese export demand will help fill the gap.

Dryness has been worsening across Northern China and the Black Sea region, both of which are now in full drought. Over the next two weeks, arid weather conditions are expected to persist. These areas produce massive amounts of winter grains, including wheat. It is too early for summer row crop concerns, but emerging weather issues must be closely monitored. Wheat prices continue to press lower, with a record fund short position of 450,000 contracts across Chicago, Kansas City, Minneapolis, and Paris wheat futures.

A rain system began pushing across the Upper Midwest this morning, with systems expected every 2–3 days. Broad areas of the Central U.S. will see relief as spring planting continues at a normal pace. The next system will form in the Plains on Wednesday and push eastward through the Midwest, producing 0.5–2.00 inches of rain. Another system will develop over the weekend and early next week, followed by a third system in the opening days of May.

Live and feeder cattle futures closed lower on Monday and are showing a steady tone for the open this morning, supported by a higher stock market. The cash feeder index fell more than $4 to start the week at $289.30. Last week’s five-area average negotiated dressed price was $9 higher at $337, while live sales rose $4 to $212. Negotiated sales volume grew by 15,000 head on higher prices but remained 1,000 head below last year’s levels. The Packers bought 56,088 head for 1–14 day delivery and 11,130 head for 1–30 day delivery. This week’s cash outlook is steady.

Following yesterday morning’s rally, June cattle futures have risen $14 from their low two weeks ago, and May feeder futures have gained $21. Technical targets may have been achieved on Monday, and the cash and box beef markets will need to support any further gains.