Grains opened lower but early in the session bounced, cattle are lower for the first time in eight sessions.
Soybeans Trade China UCO Ban?
Soybeans saw early pressure but quickly found their footing along with soy products as President Trump is now threatening to ban Used Cooking Oil (UCO) imports from China as retaliation for its refusal to buy U.S. soybeans.
Brady Huck with Advance Trading says the threat may not stick or have much overall impact.
So far in 2025 the U.S. has imported only $389 million of Used Cooking Oil from China verses the record high in 2024 of $1.2 billion. So far in 2025 the U.S. has sold only $2.5 billion of soybeans to China verses $12.6 billion in 2024.
China Raises Shipping Fees
Huck says soybeans saw more reaction on Tuesday to China’s move to increase the levy on U.S. ships coming into their ports by $54/ton.
Soybeans Hold Support
Meanwhile, soybeans are holding and have bounced off key support levels in soybeans so the market keeps digesting bearish news.
Huck is hopeful those levels will hold especially as harvest starts to wind down in some areas of the Corn Belt and farmers put soybeans in storage.
Corn Bounces Despite Harvest Pressure
Corn open lower but quickly saw some technical buying off support again on Wednesday.
Huck says the market has been holding up well amid harvest pressure from a record crop.
“Corn has rallied $.40 off the August lows and has received some help from strong demand,” he says.
He adds it would be helpful if the corn market had the benefit of USDA data to know if there was additional demand coming from exports.
Wheat Futures Try to Bounce Off Contract Lows
Wheat futures bounced off contract lows on Tuesday and are shaking off early pressure on Wednesday.
Huck says the market is still searching for a low while winter wheat planting has gone well and many acres have been established for cattle grazing.
While the market is not bidding for acres currently he says producers won’t make the decision of whether or not to continue grazing those acres until Spring.
Cattle Hit Take a Break
Cattle futures took a break on profit taking after the eight day rally which pushed both live and feeder cattle into new contract and all-time highs.
Huck says these corrections are healthy for the market which hasn’t seen a major break and there is no indication technically of one in the near future.
Currently every break seems to be bought as fund traders are adding to their long positions as the charts continue to show a parabolic move higher.
However, he says the cash market for calves and yearlings has been on fire and that should continue to support the market.
