Corn, wheat and hogs are all lower early Thursday with cattle and soybeans higher.
Allison Thompson with The Money Farm, says corn and wheat are reacting negatively to the breaking news that 25% tariffs will not be delayed and will go into effect on March 4 on Canada and Mexico.
Additionally, the Trump Administration announced China’s 10% tariff would be doubling.
Corn and wheat also sold off due to higher acreage estimates in the USDA Ag Outlook Forum.
USDA is pegging corn acres at 94 million acres, up 3.4 million from last year’s final acreage, wheat acreage is expected at 47 million a nearly 1 million acre increase.
However, soybean plantings are projected more than 3 million acres lower than last year at 84 million acres which is supporting the soybean market.
Using trend line yields, USDA raised corn ending stocks for the year by 425 million bu. to 1.965 billion bu.
Soybean ending stocks would be lowered by 60 million bu. to 320 million.
Wheat carryover is projected at 826 million bu. an increase of 32 million.
The liquidation in corn and wheat is also coming as a result of end of the month squaring and hedge pressure before March contracts go into delivery on Friday.
However, Thompson says the selling pressure by farmers is not as heavy as it was a year ago at this time because they have been marketing more orderly and the corn crop was smaller.
Corn and wheat also saw disappointing exports on a weekly basis of 31.3 million bu. and 9.9 million respectively.
Weekly soybean exports were slightly better than expected at 15.1 million.
Cattle are higher early in the session with hogs lower in reaction to tariffs on Mexico and Canada to go into place March 4.
