Overnight trade was mixed, with grains finding some selling pressure while soybeans posted slight gains. However, all contracts are firming as the session closed. Fresh market-moving news remains limited, with the bulk of attention centered on the ongoing U.S. harvest and early planting efforts in South America.

Harvest activity across the U.S. is advancing, yet basis levels are already beginning to show strength. Even in areas where harvest is underway, country movement is falling short of buyer expectations. Corn basis is firming throughout the Western Corn Belt and in the river markets, while soybean basis in the Eastern Corn Belt is also trending stronger. These signs suggest that demand remains steady despite the lack of official sales announcements.

The continued U.S. government shutdown is restricting the flow of market information. The monthly WASDE report, originally scheduled for release this Thursday, now appears highly unlikely to be published on time. Similarly, daily flash sales have been suspended, although private sources indicate commercial business is still taking place behind the scenes. Strengthening basis across key regions is lending credence to those claims.

Weather in South America is also being closely watched, particularly in Brazil. Rainfall is forecast for the drier regions, which should allow planting efforts to resume. Overall, Brazilian planting progress remains ahead of normal, and total acreage remains above average. Where conditions are favorable, fieldwork is progressing quickly.

Today, market participants will continue to watch for any developments in U.S. government negotiations and monitor outside markets for broader macroeconomic cues. Today we should also hear about the USDA Farm package being put together in lieu of China boycotting US grain.

Sharp gains were posted in feeder cattle yesterday, alongside the strength of the live cattle, as support that was prevalent late last week prompted the return of buying interest. Despite a phone call yesterday between President Trump and President Lulu of Brazil, the call was considered cordial, but no action was taken on reducing or removing any tariffs at this time. A meeting is planned at the end of the month.

Yesterday’s feeder index gained $0.90 and is at $363.47. Last week’s average live price was off $2, while dressed sales were lower by $5. Packers picked up fewer numbers at the lower prices, and volume was at a 13-week low. The Packers purchased 42,667 head for 1-14 day delivery and 10,779 head for 15-30 day delivery. Meanwhile, box beef finally showed gains, with the choice cutout picking up $1.07 while select jumped by $2.59. Another animal was found with the New World screwworm infestation in Mexico, 170 miles south of the US/Mexican border. Protocols are actively seeking out infestation.