Corn futures settled 7 to 18 cents lower on Friday. The market closed down on favorable weather and expectations for large corn acreages. Calls for weekend rains across the U.S. Midwest weighed on deferred contracts, while profit taking and long liquidation sent the July contract tumbling. News that the 2012 corn acreage is expected to be higher than the USDA’s 95.9 million estimate added pressure to prices also.
Soybean futures settled mixed on Friday. Old crop contracts ended lower, while new crop contracts traded higher. USDA reported that cancellations of 147,000 tonnes of soybeans to China for the 2011/12 marketing year, which weighed on old crop contracts. However, USDA also reported new sales totaling 382,000 sales, of which 262,000 tonnes were sold to China for 2012/13 marketing year. Reported sales deliverable for 2012/13 supported new crop contracts.
Wheat futures settled 4 to 13 cents lower on Friday. Wheat prices closed the day sharply lower on spillover pressure from corn, despite the lower dollar index. The wheat market continues to mimic the rises and falls in the corn market. This week, both China and Australia reduced their wheat production estimates, which should lend support to the market and possibly increase demand for U.S. wheat. However, overall bearish fundamentals will have kept wheat prices in check.
Cattle futures closed mixed but mostly lower on Friday. Cattle futures closed lower because there was not enough support lift market prices. Cattle futures were pressured by lower cash prices and increased slaughter quantities. Prices in the cash market were reported as $3 to $4 lower than the previous week, adding downward pressure to prices. Beef cutout prices were mixed at midday with choice up 41 cents and select 55 cents lower.
Lean hog futures closed lower on Friday. Hog futures closed the week about $1 lower across all contracts. The fundamentals of the market were fairly favorable. Weekend slaughter is expected to be below 2 million head. Higher pork prices and steady to higher cash prices were all are positive for the market today. However the market turned lower mostly due to profit taking.