Slumping old crop prices undercut corn futures again Friday morning. The latest weather forecasts remain quite favorable, and continue weighing upon new crop prices as a consequence. However, the growing belief that elevators and users can now bridge the gap to the new crop harvest is depressing country corn and bean prices, which are weighing upon the front end of the futures markets. September corn futures slipped 1.25 cents to $4.9475/bushel Friday morning, while December dipped 1.75 cents to $4.77.
The soy complex was mixed to lower around midsession Friday. More-liquid cash conditions continued undercutting nearby soybean and meal futures Friday morning, whereas the oil market remained under pressure. New crop beans were mixed, while deferred meal future moved generally higher. We suspect traders are thinking meal demand will remain strong into autumn and winter, but they are rather obviously less optimistic about the soyoil outlook. August soybean futures fell 6.75 cents lower to $13.485/bushel late Friday morning, while August soyoil sagged 0.26 cents to 43.55 cents/pound, but August soymeal plunged $18.8 to $429.0/ton. November beans rose 0.25 cent to $12.67.
Wheat futures gave back early gains as noon approached Friday. The wheat markets proved quite firm again Thursday night, with traders seemingly impressed by talk of strong Chinese buying and the passing of the U.S. winter wheat harvest (and the cash market pressure associated with it). However, prices apparently declined in concert with the corn and bean markets as Friday morning passed. September CBOT wheat gained 0.25 cent to $6.50/bushel around midsession Friday, while September KCBT wheat slid 0.25 cents to $6.92 and September MGE futures added 0.5 cent to $7.3825.
Cash market strength boosted cattle futures Friday morning. CME cattle traders have been anticipating a seasonal cash market advance to begin since late June, and have been consistently disappointed. However, wire service reports posted Friday morning indicated that packers had boosted their bids in early trading. That news quickly translated into Chicago gains. August cattle advanced 0.45 cents to 122.10 cents/pound by late Friday morning, while December climbed 0.57 cents to 128.90. August feeder futures surged 0.60 cents to 152.95 cents/pound, while November lifted 0.57 cents to 158.97.
Hog futures proved surprisingly weak in early Friday trading. Despite late-Thursday reports of considerable cash hog and wholesale pork strength, as well as the gains being posted in the cattle pit next door, hog futures turned decidedly lower Friday morning. The dwindling difference between the nearby August futures price and the CME index may have rendered the nearby future vulnerable to selling. Talk of morning cash and wholesale weakness probably added to the pressure. August hog futures tumbled 0.75 cents to 97.82 cents/pound just before lunchtime, while December dove 0.77 cents to 81.82.