Ag Market Responds to Imposed Tariffs

MORNING AG OUTLOOK

 

Grains are lower. Trump imposed 25 pct tariffs on Canada and Mexico and 10 pct additional tariffs on China imports. Canada was quick to impose $107 billion dollars of US goods. Mexico is considering Plan B retaliation. China said it will file investigation with WTO. US Ag trade will be hit. Canada canola oil supply to US will drop. This is helping soyoil futures. Trump is also looking at trade imbalance with EU and BRIC nations. Ukraine bombed Russia refineries. GSI commodity index is higher supported by higher Crude. OPEC will review curbs with oil prices higher. US Dollar is sharply higher. US stocks are sharply lower. Gold, silver and copper are lower. Coffee is higher. Cocoa, sugar and cotton are lower.

 

NOAA February US forecast with below rains south and above in Great Lakes. Temps above south below north. World Weather suggest warmer temps farther north and rains drier for plains and W Midwest.

 

SOYBEANS

SH is near 10.35. SH is near 20 DMA support. SMH is near 295.7. SMH gapped open lower and below Fridays low. BOH is back above Jan high and near 47.17. Trump imposed tariffs on Canada, Mexico and China imports. N Brazil will see drier weather. Rains are forecast later this week. Rains are forecasted for Argentina. China demand for US soybeans is expected to drop as Brazil harvest nears.

 

CORN

CH is near 4.74. CH gapped below 20 DMA support. Trump imposed tariffs on Canada, Mexico and China imports. Rains are forecast later this week. Rains are forecasted for Argentina. CH tested 4.97. Tariffs could slow US corn exports. If confirmed, RFK Jr could ban use of HFCS.

 

WHEAT

WH is near 5.54. WH is near 20 and 50 DMA support. KWH is near 5.73. MWH is near 6.16. WH range could be 5.30-5.70. Trump tariffs are not expected to impact wheat futures. Still, drop in World buying and currencies could offer resistance. World 2025 weather uncertainty could offer support.

 

 

 

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