Mexico
Mexico’s president said on Tuesday the country will respond to U.S. tariffs with a 25% tariff on U.S. goods, but she will hold off announcing the targeted products until Sunday.
Jim McCormick with AgMarket.Net says the grain markets made new lows for the move on fund liquidation and technical selling pressure tied to trade retaliation by Canada, Mexico and China.
Shawn Hackett, Hackett Financial Advisors, says the technical selling pressure hit commodity and outside markets and was tied to uncertainty regarding tariffs being placed on Canada and Mexico on March 4 and bearish economic news.
While Canada and Mexico have taken measures to address U.S. concerns, China’s response remains muted, potentially setting the stage for further trade tensions.
Joe Kooima, Kooima Kooima Varilek, says the grain markets bounced overnight and saw a higher opening but funds used that strength to liquidate or sell more contracts.
President Trump says tariffs on goods from Canada and Mexico will now take effect on April 2, 2025.
The look at corn and soybean acreage under current conditions will be among the key focal points during the event, but it will also be key to see how USDA paints an export outlook with so much uncertainty surrounding tariffs and trade.
Trump said Monday that his planned 25% tariffs on all Mexican and Canadian exports to the U.S. “are going ahead on time, on schedule,” meaning the duties would take effect on March 4 at the conclusion of a one-month suspension.
Darin Newsom with Barchart says ag markets continue to ride the roller coaster of headlines about tariffs and policy changes being imposed by the Trump Administration. This is driving fund and algorithm trading.
Kevin Good, Vice President of Industry Relations and Analysis with CattleFax, says the herd is still shrinking and so are slaughter levels and that will mean more record prices in 2025.