Grains Consolidate on EU Tariff Fears: Cattle Try to Recover

Grains ended lower on Tuesday with cattle higher and lean hog futures mixed.

Grains See Risk-Off Selling

Grains futures consolidated on Tuesday with risk-off selling tied to outside market concerns regarding possible EU tariffs and retaliation according to Oliver Sloup with Blue Line Futures. Over the weekend President Trump threatened to impose 10% tariffs on goods from eight EU countries starting Feb. 1 if Europe does not sell Greenland to the U.S. That tariff rate would go up to 25% on June 1. The EU fired back with talk of retaliatory measures. Sloup says the rising trade tensions caused a lower day in the equity markets which spilled over to the grain futures. The weaker dollar and higher crude oil futures were not able to help stem the tide.

Corn Stops at Resistance Despite Strong Export Inspections

Grain futures ended higher on Friday before the holiday weekend but were also unable to extend gains despite strong export inspections of 58.4 million bu. Corn futures ran up into chart resistance with March corn struggling at the $4.25 mark says Sloup.

“Right now, what we’re looking at for resistance $4.25 to $4.27. That’s going to be the big hurdle for the bulls to get out above, maybe spur some technical momentum. Above that, you’re looking at tacking on potentially a dime or so in a relatively short amount of time. That was old support and the breakdown point from last week’s WASDE report. So that would be the level to keep a very close eye on. On the flip side, if the bulls can’t get out above that, $4.17 1/4, $4.19 1/2, that was last Tuesdays lows. So we’re just kind of sandwiched there.”

After the WASDE report the corn market has established a new lower trading range and to break out of that it will take a big catalyst. He says that could come from technicals, South American weather or a shift out of corn acreage in 2026.

Low Volatility in the Grain Markets

Sloup says the grain markets saw relatively quiet day overall with low volume and low volatility which is also allowing the market to drift without any bullish news.