Grain and cattle futures end mostly lower Monday.
Kevin Duling, KD Investors, says more tariff talk over the weekend from President-elect Trump had fund or managed money traders nervous.
Trump is threatening 100% tariffs on all the countries within BRICS if they move to create their own new common currency or any alternative to the U.S. dollar.
That sent the dollar index higher which was negative for most of the ag markets.
Soybeans ended lower despite positive export news including another 4.9 million bu. of soybeans sold to China.
In fact, the soybean market has failed to rally even though export news has been positive the last several sessions.
Rain over the weekend in key growing areas of Brazil and record crop forecasts for South America are weighing on the soybeans and products.
AgroConsult pegged Brazilian soybean production at a record 172.2 million metric tons.
Wheat futures were mostly lower in all three classes and Hard Red Winter and Hard Red Spring wheat are in contract low areas again on more technical selling following lower Paris milling wheat.
The wheat market has disregarded the lower production and export forecasts from Russia and reports Russia’s export quote starting Feb. 15 to June 30 will be 11 MMT, that’s well below 29 MMT last year.
Duling says wheat prices are undervalued for the fundamentals.
There is a real disconnect between the cash and futures and he thinks cash will have to sort it out as the market bids for quality.
Corn is more of a follower of wheat and even soybeans despite solid domestic and export demand.
Cattle futures set back on rumors of a plant closing in Kansas at a corned beef plant and talk the Mexican border could open to feeder cattle imports sooner rather than later.
The market disregarded the higher cash from last week with the Five Area Weighted Average at $189.97, up $3.56 and higher cutouts at noon.
