Overnight grain trade finds end-user buying interest. Metals and energies remain explosive.

The grain trade is working higher in the overnight session, as markets begin to recover from Monday’s USDA report. After an initial wave of selling, some bargain hunting is beginning to appear. (there is an old axiom, that when Turn-around Tuesday does not occur, Wednesday picks up the pieces). The selloff attracted renewed buying interest, with technical support holding (415-420 corn, 1038 beans) and export demand picking up as prices softened.

One of the most talked-about items from the report remains the jump in corn acreage, particularly the conversion of silage acres to grain. Many in the trade question the accuracy of the USDA’s methodology, particularly because it relies on survey methods that may be outdated. Adding to skepticism, the response rate for the January survey was only 40 percent, raising doubts about the report's overall reliability.

South American production updates continue to offer mixed signals. Some private analysts are increasing Brazilian soybean crop projections, while others are becoming more cautious on Argentina. Notably, the USDA attaché has pegged Argentine soybean production at 47.5 million metric tons—lower than the official USDA estimate of 48.5 mmt.

Today’s ethanol production data will draw some attention, but the bigger focus is on the U.S. Supreme Court’s expected opinion regarding the legality of President Trump’s tariffs. Current betting odds suggest there’s only a slim chance they’ll be upheld, but any ruling could bring volatility. Pres. Trump has other means to reestablish tariffs, which would take a few weeks.

Outside markets have gold at all-time highs, up $42, while silver again goes to new all-time highs, up over $5.00 in the overnight session having challenged 92.00. Crude oil is challenging 62.00. This is throwing support back to the biofuel side of grains.

Cattle futures pushed higher again yesterday with feeder cattle climbing above 360 and closing at 362 on the March contract, still discounted to the cash index. The Feeder index is at $369.12 and is $8.00 below the record high created last fall. Live cattle pushed back to the top side of the trading range, with deferreds also closing at new recovery highs. It is widely accepted that cash this week will be steady, if not higher.

On the charts, February cattle have major resistance at 239-240 that seems to be a magnet now, while March feeder cattle can target $365 on the continuation chart, which is the 78% retracement of the fall collapse.