Good Morning!

The grain markets are attempting a mild recovery this morning although trading several cents off the overnight highs. Tuesday’s massive sell-off pushed soybean futures to the lowest level in nearly a decade, trading within a dime of a limit down move before rebounding to close roughly 20 cents lower. The funds are building a noticeable net short position for both corn and soybeans. The next date to look forward to will be July 6th. This is the date Chinese tariffs are set to be implemented.

The average trade estimate for Friday’s Cattle on Feed report has the number of cattle on feed as of June 1st at 103.4% of a year ago. Placements in May are estimated at 95.6%. Marketings in May are pegged at 105.1% of a year ago.

The Trump administration is working on measures that protect agriculture and other critical industries from retaliatory tariffs being threatened by China amid an escalating trade dispute between the two countries.

Brazilian Agriculture Minister said the U.S.-China trade dispute was "very detrimental" to the business interests of the country; the escalation of the trade war could raise local soybean prices but have a negative impact on animal protein producers.

Iran said on Tuesday OPEC was unlikely to reach a deal on oil output this week, setting the stage for a clash with Saudi Arabia and Russia, which are pushing to raise production steeply from July to meet growing global demand. The Organization of the Petroleum Exporting Countries meets on Friday to set output policy amid calls from President Trump and China to cool down oil prices and support the global economy by producing more crude.

The cooling trend will continue across the central US into the weekend with daytime highs running below normal. The cooler temperatures will bring rains of 1 to 4 inches to parts of Nebraska, Iowa and Illinois.

Have fun today and be safe out there!