Focus Shifts More Toward Policy

Posted on 03/09/2017 10:19 AM

Grain and livestock markets have been mostly focused on supply/demand fundamentals, but that changed this week as President Donald Trump started to push the tougher trade policies he promised during his campaign. That shifted focus more to the policy side, which resulted in price pressure on the grain and livestock markets amid trade jitters. Corn futures pushed to their highest level since August, but rolled over and are showing signs of a short-term top. Soybeans pulled back further from the January high as the trade jitters and needed drier weather in Argentina caused funds to trim their long exposure. Wheat followed corn and soybeans lower.

Pro Farmer Editor Brian Grete highlights this week's Pro Farmer newsletter below:

Cattle futures declined despite steady to firmer cash cattle trade and are hinting at a short-term top. Volatility was high in the hog market, a potential sign of topping action after a strong price recovery from the fall lows. We recommend you get current with sales and hedges to protect against further downside risk.

We look as volatility prevails after Trump's first week in office -- and much more -- in this week's Pro Farmer newsletter.

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