Grain and livestock futures melt down on Friday in a risk off day.
Shawn Hackett, Hackett Financial Advisors, says the technical selling pressure hit commodity and outside markets and was tied to uncertainty regarding tariffs being placed on Canada and Mexico on March 4.
However, he says economic fears were also tied to the Atlanta Federal Reserve prediction of a -1/5% GDP drop for the first quarter.
Hackett says the grain markets all did technical damage and could see a continued sell off next week unless there is resolution on the tariff front.
July corn broke below $4.50 and the funds are heavily long which could lead to more liquidation.
Hackett says cattle futures also saw pressure on the bearish economic news and lower cash trade.
Light business developed at $197 in the South, down $2 from last week’s weighted average.
Lean hog futures saw follow through selling on concerns about Mexican tariffs and retaliation targeting pork exports.
Funds are heavily long in hogs and also did technical damage to the charts which could lead to further pressure.
