I caught a few coons in my coyote sets last night while it was raining. I re bedded the trap but can't sift mud over it so I blended the set with grass. Will this be ok or do I need to buy peat or topsoil to cover trap?

I would just move the trap to a less muddy area outside the mud pit.

I often cover those muddy remakes with peat. I also spread the peat moss to cover most of the catch circle, i believe it helps to blend in the trap. sort of making the surroundings match the trap bed instead of the other way around. i hate to give up on a catch circle, it is a hot spot with lots of scent, and a dirty trap that then can't be reset until it is cleaned up.