Corn futures dipped along with soy prices early Friday morning. Large fall harvest prospects are exerting general pressure on the corn market, but concurrent slippage in the soy complex seemed to weigh on grains as well. A statement from the U.S. Grains Council argued that China forthcoming rule on DDG imports was unworkable may also have triggered selling. September corn dipped 2.75 cents to $3.5875/bushel Thursday night, while December sagged 2.75 cents to $3.6675.
Soy traders may be balancing positions before the weekend. Strong export results and growing talk of August Corn Belt dryness boosted the soy complex at midweek. However, bulls could sustain only a portion of Thursday’s big morning gains, which is apparently triggering profit-taking on recently established longs. On the other hand, traders may want to reduce their short exposure, since weekend weather forecasts might prove bullish. August soybean futures slumped 7.75 cents to $11.9975/bushel early Friday morning, while November futures tumbled 9.75 cents to $10.75. August soyoil declined 0.23 cents to 36.01 cents/pound and August soymeal skidded $1.9 to $393.4/ton.
Bargain hunters are reportedly supporting the wheat markets. Wheat futures suffered from a dearth of overnight news, but traded steady to higher nonetheless. Wire service reports cited bargain hunting for the firmness, 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 stabilized at $5.2875/bushel in early Friday action, while September KC wheat rose 0.5 cent to $6.21/bushel, and September MWE wheat edged up 1.25 cents to $6.21.
Cattle futures advanced again Thursday night. News of fresh cash market price records sent cattle futures soaring yesterday morning, but bulls had a hard time sustaining the move through the end of the day. However, late afternoon news of soaring beef prices apparently offered renewed overnight support. August live cattle climbed 0.77 cents to 157.32 cents/pound as Friday dawned over Chicago, while December gained 0.22 cents to 158.00. Meanwhile, August feeder futures stalled at 217.32 cents/pound, but October feeders slipped 0.30 to 217.32.
Hog futures remain under pressure. The ongoing breakdown in CME hog futures has done great technical damage to the charts. Moreover, persistent cash and wholesale losses continue undermining the footing of bulls looking for a bounce. August hog futures slid 0.22 cents to 122.97 cents/pound, while December fell 0.40 cents to 98.22.
Cotton futures remain weak after Thursday’s breakdown. The weekly Export Sales report seemingly disappointed ICE traders. They pushed prices modestly higher soon after the data were released, then turned bearish after once again failing to penetrate overhead resistance. Underlying support proved vulnerable to a much larger move. Prices are following-through modestly to the down side at this point. December cotton sank 0.24 cents to 65.81 shortly after sunrise Friday, while March futures stumbled 0.27 cents lower to 66.71 cents/lb.