The overnight trade had soybeans maintaining strength from yesterday's strong close on hopes of a Chinese breakthrough with the President. Trump’s recent comments that soybeans are at the top of his list currently, alongside other affected minerals, such as rare earth minerals, in his discussions with the President. Xi of China at the end of the month. Corn and wheat retreated, checking its strength from yesterday and creating a Turnaround-Tuesday.

This morning’s grain trade appears to be a continuation of collective positioning following several volatile and choppy sessions earlier in the week. Harvest data continues to trickle in, and a consistent trend is becoming clear: later-harvested fields are showing lower yields than those harvested earlier in the season. This is lending support to futures as expectations for tighter U.S. balance sheets gain momentum. The only uncertainty is when the official revisions might come, especially with the November WASDE report in question due to the ongoing government shutdown.

Across the Western Corn Belt, reports are growing of elevators failing to fill up/ an outcome that contradicts earlier assumptions that bin space would be tight this fall. Even with added on-farm and commercial storage, available space exceeds expectations, reinforcing concerns about disappointing yields. Mild market support also comes from signs of improved U.S.-China trade relations, which are stirring speculation that Chinese demand may soon materialize. Despite the shutdown, official reporting is still paused, but confirmed export activity is taking place, helping underpin the market. China is struggling with excessive rains and cold temperatures, hampering wheat harvesting and planting. This is prompting China also to sell some of its government-stored wheat.

After a rough start Monday morning, cattle futures stabilized and closed higher. Live cattle held firm as Friday’s strong cash trade helped support the recovery. The bottom line is, after Pres. Trump’s comments on Thursday and Sunday, many are asking “Wears though Beef”. Argentina does not have the ability to have its export quotas to the US increased by much to make a significant difference. Brazil is a behemoth in the supply of beef compared to Argentina, and comments of reducing export tariffs on Brazil have not surfaced despite Trump planning a visit also at the end of the month with the President. Lulu.

Last week’s five-area average steer price was up $5 at $240 with the choice cutout value for the week near unchanged at $366. Estimated slaughter margins were off $46 ahead for the week and are at a $94 loss. Seasonally beef prices gain in late October and Packers look to be trying to push margins back to profitable levels. Yesterday, live cattle December held the 240-241 range, and now will likely struggle against resistance on recoveries at recent highs near 248. January feeder cattle closed above 368 yesterday after challenging it significantly on the continuation charts, with here to, resistance will be significant as January feeders try to plug the gap at 376-378 created last Friday.