Grains end mostly higher on Monday, with livestock seeing triple digit losses.
Naomi Blohm, Total Farm Marketing, says old crop corn and soybeans rebound as well as the wheat market which have absorbed much of the tariff news.
Of course corn and wheat are USMCA compliant and so that leaves those commodities less impacted by tariffs than soybeans which have been hit by China retaliatory measures.
However, she says corn and wheat were also adding weather premium.
Flooding in the Ohio River Valley and mid-South will cause some replant and planting delays, which the corn market can’t afford with the push to plant 95.3 million acres.
Soft red winter wheat area also saw flooding and there was some freeze damage over the weekend in hard red winter wheat fields.
Wheat also saw some short covering as the funds are still largely short all three wheat classes.
Soybeans also saw some short covering off the lows but may still be vulnerable with possible China soybean cancellations of soybeans left unshipped.
Grains are also positioning ahead of Thursday’s WASDE Report with anticipation of lower old crop ending stocks for corn.
Blohm says demand has been strong for old crop corn and she thinks its possible the carryout could come in below the trade estimate of 1.5 billion bu., which would be bullish.
As far as South America crop adjustments, she isn’t expecting many changes by USDA in this report.
Livestock saw triple digit losses with additional fund liquidation despite a recovery off the lows in the stock market.
Blohm says cattle were due for a correction and have seen fund selling with the plunge in the stock market and recessionary fears.
So the lower close despite a recovery in financial markets off the lower was discouraging.
However, she says so far cattle futures are still holding uptrend lines on the charts.
Lean hog futures also ended lower after some early strength as President Trump renewed threats to increase Chinese tariffs another 50% if Beijing did not lower their retaliatory measures.
