GRAINS:
May corn closed down 13 1/4 cents and July corn was down 12 cents. May soybeans closed down 14 1/4 cents and July soybeans were down 14 1/4 cents. May KC wheat closed down 11 cents, May Chicago wheat was down 8 cents, May Minneapolis wheat was down 6 1/2 cents.
Once again Ag futures appeared to be stabilizing in evening trade but once the day session arrived, trade gave way to resumed heavy selling across grain markets. The looming Tuesday start date for sweeping tariffs on Mexican, Canadian, and Chinese imports to the U.S. is the primary catalyst of trade nervousness. It is not yet known exactly what U.S. ag products will be subject to retaliatory measures, although the list the Canadian government released in early February detailing $30 billion in goods to be subject to a 25% is a safe bet to still be valid. That list contained products spanning from beverage alcohols to fruits and vegetables, but notably did not include ethanol which is a welcomed exclusion among U.S. distillers. In a Sunday interview with Fox News, U.S. Commerce Secretary Howard Lutnick even suggested the final levels of the tariffs to go into effect at midnight will be dependent on how negotiations unfold, which are likely taking place throughout Monday, so the situation will certainly warrant monitoring.
LIVESTOCK:
As many assumed, the live cattle complex is following in Friday's wake as the market continues to trade lower. And now that traders have seemed to agree on the fact that the market is at risk for even more downside potential, everyone involved in the cattle complex is gritting their teeth wondering where the next major support plane could be. From a sheer technical standpoint, the next major support plane for the spot April contract is around $188. This week's showlists are higher in Kansas, but lower in Texas, and Nebraska.
Upon seeing the live cattle complex continue in its downward trend, the feeder cattle contracts are also trading fully lower despite the significant gains the market made just last week. Without some support from the live cattle complex, the feeder cattle market will likely remain on edge and skeptical of trading any higher in the immediate future.
After last week's sharp decline, the lean hog contracts are finally finding some technical footing in the futures complex. What's especially crazy about the lean hog market's developments this morning is the sharp rally in carcass prices, which is being wildly inflated by the belly's $31.89 jump. The ham is up $4.75, and the butt is up $3.51, which are both helping push the carcass price higher, but the belly's rally is whiplash worthy.
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