Corn futures remained under pressure Friday morning. Prospects for a huge fall crop are apparently weighing upon corn prices again today, especially with Corn Belt rainfall now forecast for the next two weeks. The fact that nearby futures failed at their 10-day moving averages this week is probably exaggerating current selling. September corn slid 1.25 cents to $3.5575/bushel late Friday morning, while December lost 1.5 cents to $3.655.
Improved moisture projections are likely weighing on the soy complex. Soybean and product futures bounced in late July as the Corn Belt dried out, since arid August conditions can significantly reduce the fall harvest. However, the return of rain to short-term forecasts seems alleviated those concerns, thereby triggering renewed CBOT selling. September soybean futures fell 19.0 cents to $10.8075/bushel shortly before noon Friday, while November futures tumbled 19.25 cents to $10.6275. September soyoil slumped 0.53 cents to 35.63 cents/pound and September soymeal dipped $4.4 to $357.6/ton.
The wheat markets posted surprising Friday morning gains. Current weather forecasts, as well as the latest financial market developments (falling stocks and rising dollar) don’t favor grain strength, but wheat futures built upon their overnight advance. That seemingly reflects potential production problems in a few other countries, as well as talk of improved demand for U.S. wheat. September CBOT wheat rallied 8.75 cents to $5.39/bushel around midsession Friday, while September KC wheat surged 12.0 cents to $6.3775/bushel, and September MWE wheat gained 7.0 cents to $6.23.
News of cash losses spurred fresh Chicago cattle sales. As seemed likely after Thursday’s CME breakdown, country cattle producers began taking packer bids near the lower end of last week’s price range this morning. This may have a snow-ball effect if the industry anticipates sustained weakness. October live cattle plunged 1.95 cents to 155.37 cents/pound in late Friday morning action, while December dove 2.30 cents to 155.80. Meanwhile, September feeder futures plummeted 2.45 cents to 218.75 cents/pound, and November feeders crashed 3.82 cents to 217.15.
Hog futures are mixed at midsession Friday. Hog futures have suffered badly from bearish seasonal expectations lately. Concurrent cattle losses are apparently spilling over into the hog pit, thereby depressing the nearby contracts. Deferred futures remained quite firm. October hog futures edged dipped 0.42 cents to 102.75 cents/pound, while December added 0.10 cents to 94.27.