Friday grain markets are sharply lower as tariffs loom.

As the threatened 25% tariff on Mexico and Canada could be in place as early as Saturday the grain markets are retreating into the weekend as each country is not doing their share with trade imbalances and illegal immigrants. Mexico has been the worlds and US’s leading corn importer.

Wheat futures are gaining some traction from a tighter outlook on Russian supplies and concern over the recent cold snap that may have damaged the winter wheat crop. Wheat futures can struggle due to competition in exports with the strong US dollar making our wheat relatively expensive to other global producers right now.

South American weather is showing a few showers over the weekend in some Argentine areas while others areas remain dry and hot into next week until seasonal temperatures resume. Brazil soy harvest is delayed by plants not being mature enough to harvest quite yet due to delayed planting, however they did have a favorable growing season. We should see the harvest kick into gear next week sometime.

Cattle have had a slight correction over the past two trading days however, today is called for a steady to higher trading action due to the tariff threat against Mexico and Canada. Cash trade was up $6 for the week in the south at $208 and in the north they were steady at $210 live and $329 dressed. All eyes will be on the cattle inventory report released today at 2:00pm CT which will give us a look at any herd growth in 2024.