Ag markets diverged rather widely Friday morning

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Corn appeared to follow wheat upward Friday morning. Strength spilling over from the wheat markets seemingly boosted corn futures in Friday morning trading. Persistent U.S. dollar weakness may also be supporting grain values, since that lowers the nominal cost to export customers. December corn futures rose 0.5 cent to $4.4375 around midsession Friday, while May futures gained 0.5 cent to $4.6425/bushel

Traders were apparently disappointed by Friday morning sales reports. The soy complex has been supported by talk of active exports lately. Indeed, the USDA announced large sales to China and an unknown destination early this morning. However, those totals seemingly disappointed CBOT traders, since beans and meal turned decidedly lower soon thereafter. November soybeans sank 4.75 cents to $12.885/bushel just before lunchtime Friday, while December soyoil advanced 0.41 cents to 41.53 cents/pound, and December soymeal skidded $3.8 to $409.2/ton.

Wheat futures rallied on South American news this morning. One report suggested Brazil had recently been very aggressive in the U.S. wheat market lately, while another cited forecasts for a freeze in Argentina, which might badly damage that country’s growing winter-wheat crop. December CBOT wheat leapt 15.5 cents to $7.015/bushel late Friday morning, while December KCBT wheat soared 16.75 cents to $7.6575, and December MGE futures jumped 15.75 to $7.5875.

Cattle futures appeared to suffer from a hangover Friday morning. Live cattle futures took a stunning downward turn after cash cattle prices matched their all-time highs Thursday. And while the expiring October future firmed in early Friday trading, the deferred contracts remained under pressure. Traders may now be anticipating a bout of seasonal weakness. December cattle futures sagged 0.07 cents to 131.70 cents/pound in late Friday morning action, while April slid 0.30 cents to 134.32. Meanwhile, November feeder cattle slumped 0.30 cents to 166.60 cents/pound, and January dipped 0.27 to 166.32.

The hog market declined rather sharply in early trading. Although the current situation still seems quite supportive of hog and pork prices, hog traders have to be aware of the market’s historical tendency for severe weakness late in the year. Worries about a possible breakdown seemed to depress prices Friday morning. December hog futures dove 0.62 cents to 87.82 cents/pound by late morning, while April dropped 0.35 cents to 89.90.

Cotton futures proved unable to sustain Thursday’s surge. Mixed equity index action and U.S. dollar weakness seemingly robbed cotton bulls of momentum Friday morning. Thus, they were apparently forced to focus upon recent talk of surprisingly large yields in the Southeast, as well as rising exchange-registered stocks. December cotton tumbled 0.74 cents to 83.08 cents/pound around midday (EDT) Friday, while March lost 0.89 to 84.06.



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