Brazil

Jamie Gieseke with Paradigm Futures says the weakness in the grain markets last week and to start this week was tied to liquidation and pricing of basis fixed contracts against December futures before the delivery period starts. Once that’s out of the way what is the next move?

The change reverses part of a July trade action that had imposed elevated import duties on multiple categories of Brazilian goods and is the latest effort by the Trump administration to bring grocery prices down.

Soybean futures closed nearly $.33 higher on the January contract. Craig Turner with StoneX said there was unconfirmed market talk of multiple cargoes of soybeans being sold to China through the Pacific Northwest.

Brad Kooima with Kooima Kooima Varilek says the fear of Brazilian beef tariffs being lowered was part of the selloff in the cattle futures last week. However, Brazil tariffs are still at 66.4% so he says it was already priced into the market.

Cattle market fundamentals remain unchanged while psychology shifts the market due to the President’s comments and industry interference.

Scott Varilek with Kooima Kooima Varilek says the funds continue to liquidate their long positions on the fear of the Mexican border reopening but lower fed cash is also a negative.

DuWayne Bosse with Bolt Marketing says grains are fading the reopening of the government on positioning ahead of USDA’s reports on Friday and the lack of China soybean purchases.

Chuck Shelby with Risk Management Commodities, says grains were mixed positioning ahead of the USDA reports with corn getting some support from lower yields in the average trade estimates.

Live and feeder cattle futures are extending gains after a higher close on Friday. Brad Kooima, Kooima Kooima Varilek, says he is encouraged a low may be forming in both markets.

Soybeans bounced on Friday and were up Matt Bennett with AgMarket.Net says to go back and retest this week’s highs or move to new highs soybeans will need to see proof of China purchases.