Grains are lower for a third day with livestock mixed.
DuWayne Bosse of Bolt Marketing says pressure in the grains is coming from a higher dollar and lower crude oil, Trump’s political appointments and weather.
He says, “The market is coming to the realization that the Trump Administration is appointing individuals that will impose tariffs and are not especially friendly to the bioguels industry and so that is moving the market.”
Soybeans are likely to see the biggest impact from tariffs on China and possible retaliation.
However, soybeans are also trading improved weather in South America and so soybean meal is also hitting more contract lows.
Plus, new EPA Administrator nominee Lee Zeldin has not been a friend of biofuels in the past and even tried to dismantle the Renewable Fuels Standard.
That is weighing on corn and especially the soybean oil market.
Corn is even fading another 27.3 million bushels of flash export sale from Mexico and unknown being pulled down by soybeans and wheat.
Bosse thinks January soybeans can hold $10.00 and the 20 day moving average is at $10.01.
Wheat is hitting more new lows for the move on technical selling after taking out key support but also improved moisture and crop ratings.
USDA pegged winter wheat 44% good to excellent which was up 3% from last week.
Bosse says the higher dollar is also a major headwind for wheat and talk of an end to the Black Sea war.
“President elect Trump has said he is going in to broker a deal with Ukraine,” he says.
Cattle futures trade two-sided early in the session with bearish seasonals and the recent drop in boxed beef being offset by funds defending their long position.
The live cattle futures have held critical lows so far this week but a lot may depend on where cash finally settles out.
Lean hogs futures are seeing profit taking by funds who are record long in the market according to Bosse.
He says farmers may also be hedging after new contract highs on Tuesday and with the lower Lean Hog Index for a third day and lower cutouts.
Carcass value yesterday was down $3.78 and below $100 with an $11.56 drop in bellies.
