Grain markets were under heavy pressure the past two weeks. Improving weather in the Midwest will help both corn and soybeans perform well through the critical pollination season and production estimates are stabilizing after a very difficult planting season. Wheat prices were pulled lower by corn and by the ongoing Northern Hemisphere harvest, which is showing much better yields than last year despite a late heat spell in Europe and the Black Sea that did shave off some top-end yields.
The live cattle futures market was little changed after chopping sideways the last several sessions. Cash markets improved while boxed beef held steady. Feeder cattle were slightly lower even with lower corn. Feedlots expect a heavy run of cattle into feedlots during August after a slow placement period during July due to extended good grazing conditions.
The Dow ran into notable selling after the Fed lowered interest rates but hinted there wouldn’t be more cuts soon. More selling ensued from the announcement of additional 10 percent tariffs on Chinese goods. The tariff announcement stoked fears of further slowing economic growth both abroad and domestically, which pressured the energy complex. Precious metals were supported by fears of increasing inflation from the trade war and mounting military tensions with several adversaries.