After corn futures moving up nearly 75 cents per bushels in a few days this week, prices pulled back a little on Friday. The extreme heat is expected to moderate by early next week, although rainfall amounts are expected to be light across the dry areas of the southwest, central and eastern Corn Belt. Continued timely rain is expected for the Dokota’s, Minnesota, and Wisconsin. USDA will update monthly supply and demand projections on Wednesday, July 11.
Soybean futures settled lower on Friday. Weather forecast maps continue to project that the Midwest will finally get a break from the record breaking heat. Cooler temperatures are in prospect by early next week. Rains are still a question mark, but forecast maps released around noontime contained more rain in the outlook in the Ohio River Valley. That was a source for selling pressure. Another factor was disappointing news on employment. Crude oil price fell sharply, and that was a weight on soybean oil. In late trading, soybeans were off 16 to 21 cents, soyoil was off about 90 points, and meal was down about $5.
Wheat futures closed sharply lower on Friday in a profit-taking selloff evident in all the grains. Traders with large profits in long positions were not willing to go through the weekend without ringing the cash register and taking those profits, especially with at least “some” rain and “some” let-up in temperatures forecast for parts of the parched Midwest through the weekend and first part of next week. At the same time, few were willing to buy futures after such a sharp, steep rally into the weekend and some drought relief in the forecast. It was a classic imbalance of buyers and sellers and the market was terribly overbought and ripe for a downward “correction.” Chicago spot wheat closed 31 ¾ cents lower at $8.06 ¼; KCBT spot wheat closed 34 ½ cents lower at $8.08 ½; MGE spot wheat closed 25 ¼ cents lower at $9.05 ½.
Cattle futures managed modest gains on Friday as the market focused on solid weekly export sales. However, weakness in the outside markets on lower than expected jobs data in June held cattle futures in check. Cash trade was still evolving with reports of steady trade in Nebraska.
Lean hog futures settled mixed on Friday with light trade volume. There was pressure from outside markets with declines in the stock market and lower corn prices. The fact that the cash price index is well above futures prices supported nearby contracts. The August contract settled 43 cents higher at $93.30. October was 3 cents higher at $82.25.