Corn futures were powered by the overnight rainfall in most of Midwest as many worried that wet conditions will result in the corn planting well behind the normal. Addition support may stem from the large weekly exports shipments. As far as sales performance, exporters typically sell 82% of final corn shipments by now, this year already sold 97% of USDA’s target, which is above last year at 88%. May corn climbed 2.25 cents to $5.0375/bushel Friday morning, while December rallied 2.0 cents to $5.045.
The soy futures were mixed on Friday morning with higher nearby contracts and lower deferred contracts. As we expected, the weekly export sales were almost none. Rain fell in most areas of Midwest overnight. Bean acreage is likely to increase as wet conditions may delay the corn planting, which weighed on the new crop futures. May soybeans gained 6.25 cents to $14.7825/bushel at their Friday open, while May soyoil edged 0.16 cents higher to 42.75 cents/pound, and May soymeal rose $3.1 to $483.3/ton.
Wheat market posted moderate gains through overnight trading as the tension in Black Sea region moves to a boil. Statistics Canada released its 2014 wheat acreage planting intentions showing that farmers plan to cut wheat sowing this year by 4.8% from last year. However, that was a smaller decrease than expected. May CBOT wheat futures advanced 5.25 cents to $6.9425/bushel on Friday morning, while May KCBT wheat futures gained 2.75 cents to $7.6225, and May MWE futures ran up 3.25 to $7.395.
Cattle futures are lower this morning on pre-report liquidation. Still, rising beef prices have helped cattle futures edge higher this week. Also, June futures in particular are already at a steep discount to recent cash trade. No cash trade has been reported, but the uptick in the beef market could signal steady to higher cash trade this week. Cash traded mostly from $146 - $148 last week. Futures are under pressure early from selling ahead of the Cattle on Feed report later this afternoon, which is expected to show steady to higher placements and cattle on feed about steady with a year ago. June cattle futures are 0.42 cents lower at 135.42 cents/pound, while December is 0.27 cents lower to 140.67. Meanwhile, May feeder cattle are 0.22 cents lower to 179.37 cents/pound, and August is down 0.25 to 183.80.
Hogs futures are mostly lower in early trade led by the nearby May contract. The plant-based cutout softened in afternoon trade on Thursday. That along with a weaker futures close set the stage for the early weakness in hog futures on Friday. June futures are moving toward another test of the 40 day moving average at 124.20. June hog futures are 0.075 cents lower to 125.475 cents/pound while December is 0.15 higher to 91.275.
Cotton futures were mostly lower. Market was impacted by the relative old-crop stock tightness and the latest weather conditions that likely affect the spring plantings. The strong weekly US export data seemed provide a support to a further downward movement. May cotton dipped 1.89 cents to 92.90 cents/pound at early Friday, while December cotton sagged 0.13 to 82.36.