GRAINS:
Ag markets were mixed overall to close the week on Friday as the featured headline across the economy in general was President Trump’s announcement that the administration is planning on going ahead with a 25% tariff on Mexico and Canada on Saturday, keeping in line with the deadline set when he took office two weeks ago. This had the market initially down heavily, but prices rebounded somewhat through the session as many still believe the threat is simply more of a negotiation tactic than anything. President Trump’s indecision regarding whether to include crude oil products in the tariffs is a perhaps a hint toward this. As a result, outside markets have shown a very subdued reaction as equities are slightly higher and again closing in on record highs. Crude oil futures also relaxed on Friday, coming close to trading to the January low set at the beginning of the month. March corn closed down 8 1/4 cents and May corn was down 8 1/2 cents. March soybeans closed down 2 cents and May soybeans were down 2 1/4 cents. March KC wheat closed down 9 cents, March Chicago wheat was down 7 cents, March Minneapolis wheat was down 4 3/4 cents.
For the week:
March corn closed down 4 1/2 cents and May corn was down 3 1/2 cents. March soybeans closed down 13 3/4 cents and March soybeans were down 10 3/4 cents. March KC wheat closed up 19 3/4 cents, March Chicago wheat was up 15 1/2 cents and March Minneapolis wheat was up 20 1/4 cents.
LIVESTOCK:
The live cattle complex has again changed its tune as the market seems more willing to see the merit in this week’s stronger cash cattle trade, which is something traders were blind to throughout Thursday’s sharp descent. Thanks to the additional support of the live cattle complex’s higher trend this morning and the fundamental support of strong fed cattle prices — the feeder cattle contracts are again able to trade higher themselves. Meanwhile, the lean hog complex’s nearby contracts have run into some resistance as the market’s nearby contracts are trading slightly lower while the deferred months are continuing with their rally.
