This morning, the market is experiencing mild pressure in light, low-volume trade as participants make final adjustments ahead of the USDA’s WASDE report, set for release at 11:00 a.m. CT. No significant revisions are anticipated in the balance sheets, with most of the attention focused on corn. U.S. corn export commitments are currently 2 million metric tons above the USDA’s full-year projection, with nearly two months still remaining in the marketing year. Barring any major surprises in the report, market direction is likely to shift back toward weather developments and crop condition updates.

Weather across much of the U.S. remains generally favorable, though more problem areas are beginning to emerge. Most notably, in Illinois, the corn condition rating has declined for two consecutive weeks. Should that trend continue with next Monday’s update, it could draw more attention from traders.

Trade policy remains a key factor, with headlines this morning confirming that the U.S. will impose a 35% tariff on Canadian imports. This move comes in response to Canada’s retaliatory tariffs, which followed the initial round of U.S. trade restrictions.

For the most part, the forecast for the Central US is nearly ideal as a high-pressure Ridge builds across the SW, keeping the extreme heat located there. A trough holds across the Central US with mild temperatures and frequent rainfall chances. Mild temperatures favor pollinating corn, along with blooming and pod setting for soybeans. Any positive data from the USDA this morning on carryouts will likely find willing sellers on rallies, given the fact that many are now talking a corn yield above 183 BPA, with some as high as 191.

It was a volatile session in live cattle yesterday, with feeder cattle at one time $6.00 higher on the session and then plummeting $8.00 from their highs before leveling off to a higher close in feeder cattle by over $1.00 while live cattle closed softer. Live cattle futures reversed violently around 9:30 am when the president of Mexico stated that the USDA was overreacting, with one animal being found 60 miles farther north of the quarantine area, proving that their tracking is working. Also, there is the threat on August 1 that Brazilian beef imports will be met with a 50% tariff. Brazil is the largest country of origin of US beef imports, accounting for 21% of the total. This has a direct impact on ground meat products.

Yesterday’s cash feeder index climbed $5.08 to $321.84 during the time of year when auction supplies are very minimal. There was a cash fed cattle trade on Thursday, but they were light with dressed sales in the north at $370-382, which was steady to better than last week, and live sales in IA were up $ $3 at $235. Southern Trade is asking $230. Box beef prices again were lower yesterday and were down $2.41 on choice while select gave up $1.79 on retailers slowing purchases.