Outside markets rally on reports that Pres. Trump will not remove FED Chair Powell.

Grain futures are mixed this morning despite a firm start last night. Stock markets soared while gold collapsed on the word that President Trump indicated a desire to work with China to reduce tariffs, which, as the Secretary of the Treasury, Bessette, stated yesterday, were unsustainable. Stock markets lifted substantially overnight, and gold broke as President Trump stated that he is not pursuing the removal of FED chair Powell, other than that he has been very disappointed in his lack of timing on interest rate needs.

The stock market pursued substantial gains overnight, climbing substantially above Monday’s losses and challenging last week’s Friday highs. A risk-on mentality is taking place with equities, but it has yet to filter into the ag sector. Pres. Trump says he has many deals in the works that should be announced soon, and the markets are awaiting confirmation of that, along with high-level negotiations being reported with China before putting any stock in improved trade deals.

It’s anticipated that row crop planting will be close to normal with a favorable mixture of rain and dry windows for seeding. Meanwhile, near-above normal temperatures will prevail. Corn seeding is anticipated to reach nearly 25% through Sunday, with soybeans at 20%. This is because new crop corn and soybean futures have retreated over the past few sessions. The one concern that continues to develop is that after the upcoming potential rain events for the HRW wheat belt, moisture looks to evade again and enter into another long stretch of dry weather.

Cattle futures again pushed higher yesterday, with a firm outlook offered early this morning. Yesterday, June cattle marked their second-highest close on record. Meanwhile, April live cattle futures set a new contract high, pricing in a higher cash trade this week. Even the feeder cattle futures moved another two dollars plus higher, but the cash index was down $0.52 to $288.78.

The Packers this week are looking to secure show lists at steady to slightly lower on the week, but the early futures market strength is feedlots looking for higher sales. Box beef values gave back much of Monday’s gain yesterday, with choice dropping $ 1.79 to $331.73 while select lost $1.12 at $317.65.Estimated slaughter margins last week fell $76/head to a 4-week low of $5. This was down $50 from a year ago and the lowest for mid-April since 2015. The Packers will strongly resist paying higher prices this week if they can’t pass on higher cattle costs in the beef market. The box beef market has been trading in a range of $330-340, while cash cattle trade has tried to move higher.