Grains ended mixed Monday, with livestock mostly higher.
Alan Brugler, A&N Economics, says soybeans saw significant losses to start the session but reversed with the July contract bouncing off support around $10.50.
Brugler says told crop soybeans followed the strength in soybean oil, which scored new contract highs.
Soybean oil also closed above 50-cents and hit levels not seen since December of 2023.
He says it comes on ideas of EPA raising RVO levels for biomass based diesel in the Renewable Fuels Standard to 5.25 billion gallons.
Plus strong export demand for bean oil and less palm oil and Used Cooking Oil (UCO) being used for biofuels due to the tariffs.
Meanwhile, wheat and corn saw pressure tied to weather.
Dry areas of the Western Corn Belt have received beneficial rains and the extended forecast looks drier for even some of the wetter areas in the East.
Brugler says the market was anticipating corn planting pace to be ahead of normal even with some of the rain interruptions.
Plus, the open weather in early May should allow planting to progress which has fueled the talk of higher corn acreage than the March intentions.
However, wheat has served as a huge anchor for the corn market.
Hard red winter wheat has been under pressure with dry areas of the belt receiving some much needed rains recently which was expected to improve crop conditions.
New contract lows were scored in both Kansas City and Chicago futures on Monday and Brugler says the market looks poised to make new harvest lows from a seasonal standpoint.
Brugler says the markets continue to await the announcement of trade deals but it is difficult to get that many agreements completed before the 90-day delay expires.
He says India and Japan are two important deals the market will be looking for progress on soon.
Cattle futures made more contract highs in both live and feeder futures on the heels of record fed cash trade on Friday and continued tight supplies.
The five area weighted average was a record $216.32, which exceeded the previous record of $212.76 and was also up $4.69 from the previous week.
However, Brugler says the strength in the cattle market is also being driven by higher boxed beef values and continued strong demand from consumers.
Lean hog futures also ended mostly higher and made new highs for the move on stronger cash, cutouts and fund buying.
