Grain and livestock markets are mostly lower except feeder cattle early Friday.
Joe Kooima, Kooima Kooima Varilek, says the grain markets bounced overnight and saw a higher opening but funds used that strength to liquidate or sell more contracts.
He says the uncertainty of possible tariffs on top trading partners Mexico and Canada and additional levies on China are overwhelming the market.
Mexico is a top customer for U.S. corn, wheat and pork.
And China looks set for retaliation planning for additional U.S. counter tariffs next week “with all necessary measures.”
Even soybeans are lower as the lower acreage figures from USDA are not even holding up the market.
Corn, soybeans and wheat all need to hold key moving averages headed into the weekend or there could be more technical selling.
Kooima says live cattle are lower with a lack of cash news.
Light cash trade has been mostly weaker at $198-$199 live in the North and $311 to mostly $313 traded dressed, but volume has been light.
Feeder cattle are the only market trading higher with help from lower corn prices, strong cash markets and the possibility of 25% tariffs on Mexican feeder cattle tightening supplies even further.
Lean hog futures were down $3 to $4 Thursday on the tariff news and tried to stabilize early but are struggling.
Mexico is the top customer for U.S. pork and so a trade battle and higher taxes on U.S. exports would be devastating to the market.
Kooima says so far there hasn’t been massive liquidation by the funds but that may change if no deal is worked out over the weekend.
He says currently hog slaughter is down over 500,000 head in the first six weeks of 2025 and cutouts are near $100 which are both strong fundamentals.
Cutouts were up $4.30 yesterday as pork bellies surged nearly $27 higher.
