The large US harvest may have depressed corn futures again Thursday night. The grain industry expects the USDA to boost its forecast for a record US corn harvest again next Friday. That prospect is probably keeping many in the industry from buying beforehand and giving COBT futures a downward bias. December corn futures dipped 1.5 cents to $4.2675/bushel early Friday morning, while May lost 1.5 cents to $4.46.
The soy complex is caught between competing influences. Anticipation of a huge U.S. soybean harvest also seems to be weighing upon the soybean and meal markets. In contrast, the Asian palm oil markets high a fresh 12-month high due to excessive (and untimely) Southeast Asian rainfall. That strength is spilling over into the soybean oil market and into beans. January soybean futures declined 0.75 cent to $12.655/bushel Thursday night, while December soyoil climbed 0.45 cents to 41.78 cents/pound, and December soymeal slipped $2.1 to $401.5/ton.
The wheat market may be suffering a hangover from Thursday’s export data. Talk of vigorous exports has supported the U.S. wheat markets lately. However, Thursday’s three-week export sales data fell below what seemed like rather modest expectations, thereby undermining that argument. That may be the reason prices continued slumping overnight. December CBOT wheat futures sagged 2.5 cents to $6.65/bushel in early Friday trading, while December KCBT wheat futures fell 6.75 cents to $7.3375, and December MWE futures slumped 1.25 to $7.29.
Cattle futures are surprisingly mixed this morning. Cattle futures traded in decidedly mixed fashion prior to the afternoon release of the monthly USDA Cattle on Feed report. The COF data seemed supportive of December futures and neutral for the deferred contracts, but the nearby contract was little changed last night. Traders may be more concerned about the outcome of this week’s cash trading. December cattle rose 0.07 cents to 132.80 cents/pound in pre-dawn Friday action, while April edged up 0.20 to 133.97. January feeder cattle skidded 0.02 cents to 163.65 cents/pound, and March feeders sank 0.37 to 164.12.
Hog futures posted mixed-to-lower shifts in early Friday trading. Sliding cash prices were likely offset by surprising pork gains Thursday afternoon. However, the results of the monthly Cold Storage report released later in the day also seemed rather bearish. Thus, the slippage seen overnight wasn’t terribly surprising. December hog futures inched 0.05 cents lower to 89.12 cents/pound early Friday morning, while April descended 0.07 cents to 93.30 cents/pound.