An increased production forecast seemed to depressing corn futures Friday. The corn market slipped Thursday night, then moved lower in response to news that the International Grain Council had boosted its global production forecast 4.0 million tonnes to 973 million. Nearby futures also seem to fail at technical resistance. September corn ended the week 2.75 cents lower at $3.59/bushel, while December dropped 4.5 to $3.6475.
The soy complex posted divergent moves Friday. Old-crop demand seemed to boost the expiring bean and meal contracts Friday morning. New crop beans were under pressure, whereas meal quotes edged upward. Meanwhile, losses posted in Asian palm oil prices apparently triggered a fresh breakdown in the soyoil pit. September soybean futures vaulted 15.75 cents to $10.895/bushel before the three-day weekend, while November futures slumped 4.5 cents to $10.2425. September soyoil plunged 0.60 cents to 32.04 cents/pound, whereas September soymeal surged $6.3 to $439.5/ton.
A larger IBC forecast also weighed on the wheat markets. There was little fresh news about the Ukraine-Russia situation, which may undercut Thursday’s late rally. In addition, the IGC also boosted its 2014 global wheat production forecast 11.0 million to 713 million tonnes. Thus, wheat futures moved mostly lower to end the week. September CBOT wheat fell 6.25 cents to $5.5025/bushel at its Friday settlement, while September KC wheat dove 8.75 cents to $6.2625/bushel, but September MWE wheat rose 3.0 to $6.15.
Rising cash bids spurred late CME cattle gains. Although wholesale prices proved quite weak again Thursday, CME futures rallied rather strongly Friday. That almost surely reflected news of steady-higher packer bids for fed cattle before the three-day weekend. October live cattle futures ended Friday 1.32 cents higher at 151.42 cents/pound, while December futures jumped 1.25 to 153.95. Meanwhile, September feeder futures leapt 1.50 to 218.65 and November futures soared 2.45 to 215.37.
Hog traders clearly expect a September cash bounce. Although cash hog prices remained weak Thursday, pork cutout values rebounded modestly from Wednesday’s big losses. They continued rising at midsession Friday, thereby encouraging bullish traders to look for much more of the same in early September. October hogs spiked 2.65 cents to 98.12 cents/pound at their Friday settlement, while December rallied 1.62 to 92.00.