A lower day Friday in the markets, except hogs and wheat.
Shawn Hackett, Hackett Financial Advisors, says corn and soybeans saw risk off profit taking heading into the weekend and have settled into ranges ahead of the end of the month and quarter and before the big USDA reports and more possible tariffs.
What corn acreage is the market currently trading?
Hackett says the corn market has already traded an 94 million acre figure but he thinks its likely to be 95 million or above.
If that is confirmed in the USDA Prospective Planting Report that could push ending stocks near or above the 2.0 billion bu. market, depending on the yield which would be negative for prices.
Hackett also believes the soybean market has already digested the lower acreage USDA projected at the Ag Outlook Forum at 84 million acres.
However, if the drought lingers or there is a production issue late in the season with soybeans it could really tighten the balance sheet in a hurry.
The market is also bracing for the possible tariffs on Mexico and Canada and reciprocal tariffs on the rest of the world on April 2.
So, how will the market handle that?
Hackett says the levies on Canada and Mexico will trump the reciprocal tariffs because of the dependence the U.S. has on those two countries for exports.
So he looks for some major volatility in the markets the first week of April.
Cattle markets ended lower after surging to new contract and all-time highs in futures and cash.
So are these key reversals signaling a blow off top in the market?
Hackett says the cattle still closed higher for the week and so he doesn’t see it as any more than some profit taking heading into the weekend and some producers selling as many had to make margin calls.
Cash hit new highs as well with live Southern live business marked at mostly $210, $7 higher then last week’s weighted averages.
Northern dressed deals were marked at mostly $335, $10 higher than the prior weighted averages. Live prices ranged from $212 to $215, up $3 to $5.
Look for weekly weighted average highs to be broken when summaries are released on Monday.
The Cattle on Feed Report was released after the close and was friendly with the on feed number at 98%, placements at 82%, 4% below estimates and placements at 91%.
