Corn futures dipped along with soy prices Friday morning. Large fall harvest prospects are exerting general pressure on the corn market, but concurrent slippage in the soy complex is also weigh on grains today. A late statement from the U.S. Grains Council argues that China’s forthcoming rule on DDG imports is unworkable; that may also be weighing on prices. September corn dipped 1.25 cents to $3.6025/bushel around midsession Friday, while December sagged 0.5 cent to $3.69.
Soy traders turned mixed in late morning action. Strong export results and growing talk of August Corn Belt dryness boosted the soy complex at midweek. Thursday’s late technical setback persisted overnight, but the market stabilized as Friday morning passed. Traders may be reducing their exposure on both sides of the market, since weekend weather forecasts might spur a move in either direction. August soybean futures gained 4.25 cents to $12.1175/bushel just before lunchtime Friday, while November futures tumbled 2.25 cents to $10.825. August soyoil declined 0.12 cents to 36.12 cents/pound and August soymeal added $1.1 to $396.4/ton.
Bargain hunters are reportedly boosting the wheat markets. Wheat futures are apparently suffering from a dearth of news, which may be one reason they rose Friday morning. Active bargain hunting and short-covering are apparently coming into the markets, which makes considerable sense when one considers the size of the May-July breakdown and the huge short exposure of the trading funds. September CBOT wheat bounced 6.0 cents to $5.3475/bushel late Friday morning, while September KC wheat climbed 5.5 cent to $6.26/bushel, and September MWE wheat moved 3.0 cents to $6.2275.
Continued cash gains are encouraging cattle bulls. The CME cattle market seemed in danger of stalling after cash prices surged to fresh records Wednesday. However, spot quotes jumped to new highs this morning, which in turn supported Chicago quotes. Spiking country values suggest a blow-off top is looming. August live cattle surged 1.12 cents to 157.67 cents/pound as the lunch hour loomed Friday, while December rose 0.22 cents to 158.00. Meanwhile, August feeder futures advanced 0.35 cents to 217.67 cents/pound, but October feeders ran up 0.55 to 218.17.
Hog futures proved surprisingly mixed in late-morning activity. Cash hog and pork values are suffering seasonal losses at this point, which has been reflected by the recent drop in CME futures. However, futures are already valued well below spot levels and probably deriving support from the cattle pit. August hog futures climbed 0.60 cents to 123.80 late Friday morning, while December fell 0.17 cents to 98.45.