Corn futures bounced from overnight losses Friday morning. After having rallied at midweek, corn futures apparently declined in response to negative Chinese news Thursday night. However, prices are now rising again, which reportedly reflects industry concerns about flooded fields in the western Corn Belt. Thus, new crop prices are leading the advance. July corn gained 1.5 cents to $4.52/bushel Friday morning, while December climbed 3.25 to $4.5075.
Demand concerns are again weighing on the soy complex. Although the old-crop soybean situation remains very tight, traders now seem much less worried about a potential summer shortage. Meanwhile, news of a sizeable new crop bean sale is supporting deferred futures. Concerns about excessive western Corn Belt moisture may also be boosting new crop prices. July soybeans dove 15.5 cents to $14.0525/bushel in late Friday morning action, while July soyoil sagged 0.18 cents to 40.43 cents/pound, and July soymeal dropped $4.7 to $446.5/ton.
The wheat markets remain under pressure. Wheat futures declined in concert with corn and beans last night, but, unlike the yellow grain market, has proven unable to rebound Friday morning. The domestic situation still seems relatively tight, but traders worry that bearish global developments will drag American prices steadily lower. July CBOT wheat futures stumbled 5.25 cents to $5.8825/bushel just before lunchtime Friday, while July KCBT wheat lost 4.75 cents to $7.245, and July MWE futures sank 7.5 to $6.955.
Cattle are likely evening up before the COF report. The cattle market has clearly performed well lately, with cash and wholesale strength pulling futures upward. However, traders are apparently liquidating longs ahead of this afternoon’s monthly USDA Cattle on Feed report. August cattle plunged 1.22 cents to 146.25 cents/pound around midsession Friday, while December declined 0.57 to 150.20. Meanwhile, August feeder cattle futures fell 1.20 cents to 206.35 cents/pound and October tumbled 1.25 to 204.42.
Hog futures are mostly lower this morning. Recent cash and wholesale strength, as well over spillover cattle gains have boosted hog futures lately. However, today’s midsession reports indicate considerable late-week slippage in the country and in pork prices. Those are probably encouraging long-liquidation before the weekend. August hog futures slumped 0.37 cents to 129.37, while December lost 0.80 cents to 96.20.