By NATHAN STUEDLE
St. Joseph Post
GRAINS:
May corn closed down 1/4 cents and December corn was down 1 1/4 cents. May soybeans closed down 18 cents and November soybeans were down 20 1/4 cents. May KC wheat closed up 1/2 cents, May Chicago wheat was down 3 1/4 cents, May Minneapolis wheat was down 1 1/4 cents.
Tariff talk and headlines leaped back into the driver's seat of the market Wednesday evening following President Trump's unveiling of sweeping tariffs across the globe. Traders and investors had been holding out optimism that the trade policies would be much more precise and specific than what was announced, which ultimately included a blanket 10% tariff on all imports to the United States, with more severe duties on countries the Trump administration deemed as the worst offenders. The latter includes a 20% duty on the European Union and an additional 34% tariff on China, in addition to increased action against Vietnam, Thailand, and Japan. The U.S. ag markets reacted as one would have expected, with a gap lower across major U.S. grains and livestock markets Wednesday evening. Since then, corn and wheat markets have stabilized, finding optimism that major trading partners have not yet announced retaliation and in the weakening U.S. dollar's positive effect on U.S. price competitiveness on the world stage. Soybeans, on the other hand, did manage to recover off daily lows but remained under pressure for the session due to the heavy duties against China and China's promise Thursday of a policy response. Stock indices predictably responded to Wednesday's measure with sharp volatility, with the Dow Jones Industrial Average down over 1,500 points at one point on Thursday.
LIVESTOCK:
Live cattle futures have given back all midweek gains and even more as trade and tariff concerns rocking financial markets had a significant impact on livestock trade and the cattle market specifically. Cash cattle markets remain generally quiet, although a few more bids are now on the table. In Nebraska, major packers are bidding $335, while a regional packer has bid $345. Asking prices in the North are still not well established. Southern bids are at $208, which is well below current asking prices of around $212. Packer inquiry should continue to improve as the day progresses, but significant trade volume may be delayed until Friday.
Feeder cattle futures led the market lower with the general pressure on all cattle trade starting in the morning trade. The market has additional concerns about these newly instated tariffs will impact not only short-term trade and buying decisions, but also long-term market activity. The focus on overall economic health continues to be weighed heavily on overall cattle trade which may have a longer-term impact on overall beef demand.
Lean hog futures were mostly lower as the general market tone Thursday remained weak. But compared to the rest of the livestock trade, lean hog futures seem to have worked most of the tariff and demand concerns into the complex. With nearby contracts trading in the bottom half of short-term market levels, it is uncertain just how much more active selling pressure will develop given the current fundamental market support.
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