The WASDE report is out at 11:00 a.m. CT today.

Markets are seeing final positioning ahead of today’s WASDE update. No major changes are expected, as December reports typically limit adjustments to the demand side, with production left unchanged until January’s final numbers are released.

Given the recent pickup in corn exports and China’s return to the market, USDA may be less inclined to cut demand figures just yet. Likewise, no significant global revisions are anticipated. Once the data is out, trade attention will quickly pivot back to South American weather and U.S. export pace for fresh direction.

China’s move to auction soybeans from reserves may limit near-term import demand, but replenishing those stocks will still require U.S. purchases. Brazil’s fast-approaching harvest will also shift the focus of Chinese buying in the coming weeks.

Outside of the WASDE release, fresh market news is limited this morning. Traders are also awaiting more details on the recently announced $12 billion aid package for U.S. farmers, which could influence longer-term positioning. Corn carryout today estimated at 2.129 Bill Bu, soybeans 308 Mil Bu, and wheat at 889 Mil Bu.

 On the weather front in SA, rainfall over the last 24 hours provided solid coverage across southern Brazil and Uruguay, two areas of elevated concern. Even Argentina’s Núcleo Zone should see improved precipitation into northern Buenos Aires Province. 

After a seven-day explosive rally into last Friday, cattle futures went into corrective mode yesterday, but by the close, prices had recovered some of their losses. The cash feeder Index slipped $0.67 and started the week at $343.06. This coming week is the last full slaughter week of the year for packers, and they’ll probably want to boost kill rates. Last week, the average negotiated carcass price jumped $13 at $343. Meanwhile, the average formula price was off $9, and forward contract sales averaged $12 lower.

Box beef values saw choice slip $0.30, while select gained $1.21. Live cattle are currently in a resistance zone, with 231.00-232.00 as a significant resistance level on the charts. Spot January feeder cattle stumbled just shy of the opening of a large gap at 340-348. The 50% retracement of the $83 decline comes in at 341. This obviously marks 340-342 initial heavy resistance.