GRAINS:
For the most part ag markets were quick to shrug off the recent wave of trade concerns stemming from President Trump’s announcement of a 25% tariff on steel and aluminum imports to the U.S. Ag markets thus far through the recent weeks whirlwind of trade headlines has made it out unscathed for the most part. For this week, Ag traders will have their attention drawn to the more immediate February World Agricultural Supply and Demand Estimates (WASDE) report, due out from the USDA at 11 a.m. CST Tuesday. In outside markets to start the week, equities were firmer, while the U.S. Dollar took advantage of the tariff trade to post a third straight session higher, which pressured Ag markets slightly. Gold futures continue to surge further into all-time highs, surpassing $2900 per ounce Monday on President Trump’s announcement. March corn closed up 4 cents and May corn was up 4 cents. March soybeans closed unchanged, and May soybeans were unchanged as well. March KC wheat closed down 7 1/2 cents, March Chicago wheat was down 3 1/4 cents, March Minneapolis wheat was down 2 1/4 cents.
LIVESTOCK:
The live cattle complex continued to build upon the support that was established last week after the market endured significant down-pressure. It’s somewhat relieving to see the spot April contract maintaining its position above the market’s 40-day moving average. Still, with only a thin hairline margin standing between the two price points, traders will continue to monitor that closely. It’s still too early in the week for any cash cattle business to have developed, but with packers having to buy cattle cheaper last week, they’ll likely fight tooth and nail to keep the cash market’s trend headed in the same direction this week. The added support of the live cattle market’s higher trend has thankfully helped the feeder cattle contracts regain some gusto as all the contracts are trading above $1.50 higher into Monday’s noon hour. For most of the morning, the lean hog complex traded higher but as the noon hour approached, some technical pressure settled into the market. One would think that the substantially stronger pork cutout value this morning would help ease some technical pressure, but traders are uncertain about what direction to send the market at this junction. I think it’s worth noting that this morning the carcass price isn’t being inflated by simply one cut’s gain, but rather instead by the vast majority of the cuts trading higher.
