By NATHAN STUEDLE
St. Joseph Post
GRAINS:
Corn futures were flat to 4 cents higher at the close, with active two-sided trade and the range holding so far as we watch the outside market rollercoaster. Ethanol margins will see continued pressure from losses in energies.
Soybean futures were1 1/4 to 6 cents higher at the bell on the three nearby contracts, with trade working to consolidate the low end of the range after the late-week washout with a brief sharp rally on positive trade rumors. South American weather looks to remain cooperative for harvest to keep overall harvest pressure easing outside of the trade action.
Wheat futures were 1 to 8 cents higher at the close with light short-covering and weather concerns keeping support in play. The hard red wheat areas look to be mostly dry in the short term with warming temps this week before moisture potential improves the second week. Weekly crop progress is expected to show conditions a bit lower than the last national report last fall with development in line with the 5-year average pace. MATIF wheat is solidly firmer as the dollar weakness eases again today.
LIVESTOCK:
Live cattle futures have continued lower with all contracts now trading under the $200 per cwt threshold that seemed solid just a week ago. Although stock markets made wide shifts through the morning, the inability to hold the temporary gains has led to widespread market pressure redeveloping in nearly all markets. There remains a lot of concern and fear about what the ramifications of tariff levels will have on not only beef markets but the general economy, which is keeping trade under pressure. Cash cattle markets are quiet with bids and offers still undeveloped.
Feeder cattle futures followed the bearish tone seen through other markets on Monday. Very little fundamental market direction is being utilized at this point, and overall market technical factors are being generally overlooked. The main focus across all markets, including feeder cattle trade tariff levels and potential implications to the economy. It is way too early to determine what short- or long-term impact any of this will have on cattle markets and cattle prices, but traders are taking protection if there is no other information available to trade at this point.
Lean hog futures moved lower Monday despite showing some signs of support early in the session. Underlying concerns of tariff levels set and retaliatory tariffs developing have traders unsure of how overall pork demand will be impacted through 2025 and beyond. When faced with uncertainty, traders nearly always take a protectionary stance. This is one of the main drivers of the recent market tumble.
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