Grains are mostly lower early with mixed trade in livestock.
Randy Martinson, Martinson Ag, says grains are not seeing follow through buying after the strong closes on Tuesday as the market is trading tariff fears.
Wednesday has been proclaimed as “Liberation Day” by the Trump administration but few details are known.
The President is scheduled to make an announcement at 3pm Central Time but early indications suggested 20% tariffs on imports from most nations.
Already Mexico, China and the EU have indicated they will provide counter measures.
The fear is overshadowing some of the supportive features of the grain market including weather with areas of the Delta and Southeastern Corn Belt expected to get several inches of rain which could slow corn planting.
That brings into question the ability to plant 95.3 million acres of corn this spring.
Areas of Southern Brazil are also seeing hot dry conditions persist and that may impact the second crop corn yields, plus StoneX also lowered the Brazilian soybean crop estimate by .8 MMT.
Soybeans and soybean oil also got a push Tuesday from news a deal on higher blending mandates in the Renewable Fuels Standard for biomass based diesel are near.
However, this morning the fear of further tariff retaliation by China is weighing on futures.
The wheat market is mostly lower with corn and soybeans due to tariff fears and forecasted rains in the Southern Plains.
However, Martinson says the extended outlook turns back drier for hard red winter wheat areas.
Wheat also got a boost yesterday with the Australian crop expected to be down 16%.
Cattle futures were two sided early in the session but at least live cattle have found their footing and look poised to retest contract highs.
Choice boxed beef was nearly $7 higher on Tuesday.
Supplies have continued to be tight and tariffs would actually be positive for cattle, slowing imports of beef.
