The overnight markets reacted positively to Pres. Trump’s comments on Sunday, stating that there are still three weeks to work things out, and he thinks Pres. Xi is an honorable man and will want to work out a deal to avoid a depression in his country. This had metals sharply higher overnight, with silver trading above $50.00 for the first time ever, with gold at 4100, crude oil putting in a mild recovery, while the grain trade did not move very much.

Soybeans are showing a little strength to start the week, while grains are struggling. Wheat is again trading lower this morning and setting new contract lows. Larger world production estimates are weighing on the wheat complex. This includes Russia, which increased its harvest forecast by 600,000 metric tons. Reports of favorable growing conditions for the South American crop also add pressure to wheat. World FOB wheat prices remain weak as record-large South American crops promote a drag. Argentina is now the cheapest wheat exporter in the world at $214/MT.

A firming cash market is mildly supporting soybeans, and concerns that the US crop may come in below current estimates, which are already short of projected new crop demand. Soybean harvest is already winding down across the US, and basis is firming as a result. Corn basis is also starting to firm as farmers show no interest in marketing at today’s values.

The promise of a subsidy package further limits the selling interest. All grains are coming under pressure from escalating trade tensions with China. The most significant issue right now is the new shipping fee, which both countries say will go into effect tomorrow. This will add $1.66 per bushel to the cost of US soybeans for all importers using vessels tied to China.

After a sharply lower run on Friday, feeder cattle futures recovered sharply into the settlement, helping post new contract highs on all 2026 live cattle and all feeder cattle contracts. This helped culminate a $ $26 rally in feeder cattle from the prior Friday low into last Friday's settlement. The cash feeder Index last week gained $5.75.

The negotiated fed cattle market held until the end of the week, with higher sales reported in all regions. The north was quoted $4-5 higher at $234-235, while live sales in the South gained $1 at $235. Cattle slaughter last week was at a 7-week low of 547,000 head, which was off 38,000 from a year ago. Meanwhile, boxed beef prices did climb last week by a few dollars.

The cattle trade is anticipated to start firm this morning, and after Friday's technical breakouts, it looks set to experience further gains. Seasonal price lows for live and feeder cattle appear to have been made, with volatile price swings now favoring the upside.