Grain, Hog and Dairy Markets End Lower on Tariffs: Cattle Rebound Pre-Report

Bryan Doherty with Total Farm Marketing says most markets had a negative reaction to to the 25% tariffs on Mexican and Canada starting this weekend and possible retaliation.

Ag markets ended mostly lower except cattle on Friday.

Bryan Doherty with Total Farm Marketing says most markets had a negative reaction to to the 25% tariffs on Mexican and Canada starting this weekend and possible retaliation.

He says corn also saw some pressure on end of the month profit taking and slightly better weather in South America moving forward.

Corn had a lower weekly close which may be a signal, according to Doherty, for the funds to liquidate part of their massive long position.

Soybean futures were also lower on tariff concerns and South American weather, but the big rally in soybean oil keep the losses limited.

Soybean oil rallied sharply in reaction to possible tariffs on canola/canola oil imports from Canada.

Wheat futures were also lower on tariff fears on Friday but ended higher for the week and may be putting in some risk premium on the lower Russian crop and exports.

Cattle futures rebounded with higher cash at $208 in the South on Thursday and $330 in the North dressed.

However, it also got a bump from bullish anticipation of a bullish USDA Cattle Inventory Report.

All cattle and calves came in at 99% at 86.7 million head, down 500,000 from a year ago.

Beef cows and beef cow replacements were down one percent as well.

All calves under 500 pounds were also one percent below a year ago.

This confirmed the smallest beef inventory since 1961.

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