Most ag markets are seeing pressure early Monday morning, except soybeans and bean oil.
Brad Kooima, Kooima Kooima Varilek, says the initial response was to tariffs imposed over the weekend on imports from China, Canada and Mexico and retaliatory measures announced by those countries.
President Trump is also talking about possible tariffs on the European Union.
However grains rebounded shortly after the day session opening on breaking news that Trump was delaying Mexican tariffs for one month for negotiations, hours before they were to take effect.
Lean hog futures took the tariff news the worst initially as Mexico is the top pork export customer for the U.S. and that market is dependent on strong export demand.
However, it failed to rebound even with the Mexican tariff delays as Canada is also a large export customer and will be putting 25% tariffs on pork and poultry in the second retaliation phase.
The cattle market may be less impacted by possible tariffs as Kooima says the U.S. imports more beef than it exports.
Cattle markets tried to rebound with the friendly numbers in the USDA Cattle Inventory Report, with all cattle/calves at 99.4% and the smallest inventory since 1961.
Kooima says the border is also reopening to Mexican feeder cattle imports but the initial movement will be very slow due to the tightened inspection process.
He says that might eventually be offset if the 25% tariffs on Mexico do go into effect.
Cash cattle traded at record levels again last week and the South led the charge with mostly $208 live sale prices, up $6 to $7 from the previous week.
The North traded at mostly $330 dressed, steady to $2 higher.
