GRAINS:
The holiday week thus far has featured surprisingly high volume trade considering the lack of fresh fundamental news entering the market on any given day. The market did get a soundbite to drive trade Tuesday as U.S. President-elect Donald Trump announced Monday evening his plans to implement a 25% tariff on imports from both Mexico and Canada, with an additional 10% tariff on imports from China on his first day in office, Jan. 20. This, of course, sets the stage for retaliatory tariffs from all three countries, which are likely to target agricultural commodities. The markets were initially slow to react to this news, likely due to the overall sleepy tone in general on a holiday week; but midmorning traders stepped in with a renewed round of selling, which drove prices slightly lower across the ag complex. March corn closed down 5 cents and May corn was down 4 1/2 cents. January soybeans closed down 2 1/4 cents and March soybeans were down 1/4 cents. March KC wheat closed up 1 3/4 cents, March Chicago wheat was up 2 1/4 cents and March Minneapolis wheat was up 3 3/4 cents.
LIVESTOCK:
The livestock complex is traded mixed into Tuesday’s close as the live cattle contracts are trading mostly lower but the lean hog and feeder cattle contracts continue to grind higher. The live cattle complex is trading mostly lower as the market is on edge, waiting to see what develops in this week’s cash cattle market. Still no cash cattle trade has developed, but asking prices are noted in the South at $189 but are still not established in the North. Given that feedlot managers’ pens are current and that they were able to trade cattle higher last week, it’s likely that will want to see prices trade higher again this week. With that being said, it wouldn’t be surprising to see trade delayed until Friday. Even though midday pork cutout values were lower, the lean hog complex continued to charge onward and higher as technical support is ample.
