Wheat markets found buying support at long term lows, with a quick rally when it became evident that those lows would hold. Wet conditions in the major U.S. winter wheat growing areas are keeping traders in a negative mindset, but concerns are developing in China and the Black Sea region as crops begin to break dormancy and it appears that winter kill was more prevalent than originally thought.

Corn values found some support on growing concerns about another year of delayed plantings as more snow and rains move across the Midwest and northern plains. Flooding in the northern Midwest has producers estimating that the planting season will begin very slowly again this year.

The cattle complex continued to roll to new contract highs, with futures and cash markets at 11-month highs. More rains in the major feeding areas are keeping feedlots in very muddy conditions and cattle under a great deal of stress. Slaughter weights are down significantly, and the resulting decline in beef production hasn’t been able to keep up with the seasonal increase in demand as the barbecue season kicks off across much of the United States. Poor quality corn is contributing to the drop in weights as cattle have simply not been able to convert at a normal pace, making feeding the cattle more expensive and pushing feedlot operators to move the cattle to slaughter at the lighter weights. Feeder cattle have performed very well, too, as they are being supported by the strong live cattle market and increasing demand for grass calves as pastures benefit from the abundant moisture across the southern and central plains.