Cattle, hogs and corn see early strength Friday with wheat and soybeans lower.
Scott Varilek with Kooima Kooima Varilek says it has been a roller coaster ride on tariffs all week on the markets including yesterday’s delay to Mexican and Canadian tariffs on USMCA compliant products until April 2.
So when do the markets become numb to the ever changing tariff news and go back to trading their own fundamentals?
Varilek says black swan events like the Black Sea war that broke in May of 2022 lead to highly volatile markets but in that case the news and uncertainty became priced in after a few weeks and even today news out of that region rarely moves the market.
The cattle market looks like it could close higher for the week despite the lack of cash news and melt down in the stock market.
Cash has been very light this week but some cattle have sold in the South at $196 to $197, steady to $1 lower than last week and Northern trade has been light at $310-$312 dressed and $198 live.
Shortly after this broadcast some $200 was traded in the North with bids being raised to $201 and passed on.
Packers have been able to pull formula cattle at the start of this new month.
The charts look more constructive according to Varilek with April live cattle able to get above the 100 day moving average at $198.75, so he is hopeful for additional recovery.
Lean hog futures are up this morning with a reprieve on Mexican tariffs and counter taxes that may have targeted pork.
Funds have liquidated a chunk of their length in the lean hogs but are holding together with decent demand as exports yesterday were strong and included Mexico and China as the top two buyers.
Grain futures are mixed with corn trying to extend gains but soybeans and wheat struggling.
Grain markets rebounded nicely the last two sessions on the tariff delays and corrective the oversold market status.
