Grains end lower on Monday, with cattle mixed and hogs higher.
Mike Zuzulo, Global Commodity Analytics, says grains further corrected with funds liquidating in corn, soybeans and meal due to rains over the weekend in Argentina and more in the extended forecast.
Tariff fears also crept back into the grain markets after the tariff tiff over the weekend with Columbia.
While it ended as a non-event, it reinforced the idea the Trump Administration will impose 25% tariffs on Mexico and Canada on Feb. 1 if they don’t comply with the U.S. demands on border security.
Tariffs would also keep the U.S. dollar strong, which will hurt demand for U.S. exports according to Zuzulo.
China’s economic and manufacturing data was also weak which pressured grains and Zuzulo says leads him to believe it will be difficult for the U.S. to strike a trade deal with China.
Live cattle futures made all-time highs for a fourth straight session on the heels of a fourth week of record fed cash trade.
The 5-area weighted average was calculated at $210.79, up over $7 from the previous week and a new record high.
Feeder cattle futures also made all-time highs early in the session but then reversed to settle lower on the day.
Zuzulo says this has him concerned that the feeder market is running out of bullish steam and could start to correct.
