Grain markets soared higher as wet weather wreaked havoc on row crop plantings and winter wheat production. Corn and soybeans plantings are at a record slow pace, with the likelihood that millions of acres won’t get planted at all. Winter wheat across the Midwest and plains is experiencing high disease issues due to warm and moist conditions. Harvest is stalled in the south, leading to more quality problems and expected yield loss as well.
Cattle were lower, led by feeders. A new tariff against Mexico created major selling in the feeder cattle market on fears that they would retaliate with their own trade restrictions. Calves, beef and corn are just a few of the major ag products that the US sells to Mexico. Cash markets stabilized and actually showed some strength for the first time in weeks.
Energies and the Dow were pressured on concerns of escalating trade wars, not only the breakdown of talks with China but now Mexico and fears that the new North America trade agreement will fall apart as well.
Evidence of slowing economic growth here in the US is putting traders on alert, wary that the U.S. economy will move the way of slowing global growth.