China places countervailing tariffs on the US of 84%.

Grain prices were firmer overnight. Then, at 6 AM, when China announced their countervailing tariffs of 84% on US goods, they dipped too unchanged to slightly lower. They quickly recovered and are now headed out near the session's best levels. This marks the third day in a row now that the stock market has ignored collapsing outside equities and energies. They are starting to comprehend the risk of present stock numbers and production capabilities in question with end-user buying prevalent in short covering developing from spec funds.

The US now has 104% tariff on imports in place for China effective as of midnight last night, while China has imposed an import tariff on goods at 84% versus 34% last week. Chinese tariffs will take effect this Thursday, which is weighing heavy on tech and energy stocks which have been hit the hardest.

Grains are firm as supply risks are starting to become prevalent as the forecast calls for a return of rainfall to the Delta and southern Midwest after April 21. If this is realized, further delays in corn and soybean seedings will occur there. Fieldwork will be limited in the short run as overnight lows stay in the 30s and 40s far south as MO, KY, southern IL, southern IN, and OH into April 20. Also, Brazilian weather needs to be watched amid hints that rains exit major crop areas completely beyond the next 8-9 days. Meanwhile, the drought is set to deepen across the southern and central plains, with soil moisture loss there accelerating with temps in the 80s for TX, OK, KO, and pockets of KS and NE.

Live and feeder cattle futures closed mostly lower yesterday, except for spot cattle and feeder cattle contracts. April feeder cattle picked up $2.60 on the day but are still more than $10 under the cash index. Cash feeders yesterday gained $0.53 at $ 290.53. A small number of cattle traded in Nebraska yesterday and Iowa at $ 328 on a dressed basis, down $9 for the week in Nebraska and $7 lower in Iowa. Box beef values had choice down $1.40 while select gained $2.76. June cattle are just above chart-based support at $193.00, which will possibly be challenged this morning in the face of another breaking stock market. Major long-term support is at 189-190.00 if the 193.00 range fails.