Grains find buying interest overnight.

Corn, soybeans, and wheat traded higher overnight as selling interest remained limited. While fundamentals continue to offer support, recent sessions have struggled to attract consistent buying. Export demand, however, is showing signs of improvement. Multiple U.S. sales were reported yesterday, including flash sales and additional smaller deals.

A weaker U.S. dollar today could bolster importer interest, further supporting the grain complex. Domestic demand also remains firm, with ethanol production and soybean crush both running ahead of last year’s pace. (Sep soy crush 204.9 mbu, Oct crush a record 237 mbu) However, concerns are emerging around soy product supplies. Soy oil stocks have climbed nearly 12% from a year ago, while soy meal prices remain elevated, roughly $25 per ton above global competition.

Geopolitical developments are back in focus. Tensions are rising in the Black Sea region, and the U.S. seizure of a Venezuelan oil tanker is adding to the uncertainty. Meanwhile, the Federal Reserve cut interest rates by 25 basis points yesterday but signaled hesitation about further easing. Labor market weakness continues to weigh on the broader economic outlook. Mounting concerns about a potential AI-driven asset bubble could also shift investor flows toward safer assets, including commodities.

There should be a conversation about China’s crop stress, as its late plantings will likely impact wheat development. The plantings are a complete 20 days behind normal, and it’s estimated that China’s losses could be up to 25%. Yet you’re not reading this in the media. Why is that?

After a two-day pause, live and feeder cattle futures pushed higher yesterday and are expected to open firm this morning. Feeder cattle are sitting at the doors of the 340 gap. Yesterday’s feeder index drifted $0.47 to $344.03 and is still holding a $6 premium to January feeders.

Cattle slaughter is at 361,000 head so far this week, which is again 7,000 fewer than last week, but still 2,000 fewer than a year ago. Choice cutout values slipped $1.68. As we get underway, negotiated cattle are seeing bids in the north at $225-227, which would represent a $2-4 gain if captured. Next week will be the last full week of slaughter procurement, and Packers are perceived to be short bought on supply.

Feeder cattle have not traded in a $9.00-10.00 range for a few days, but intraday, they still swing $3.00-4.00 within a few minutes, creating that constant daily jitter. Feeder cattle are poised to push higher but have significant chart-based support at 3.40-3.42 before they punch deep into the gap, which carries up to 348. February live cattle look drawn to the 231-232 price range.