Cotton the exception to the bullish ag market rule Friday morning

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Friday’s soy surge exaggerated the morning corn bounce. Corn futures bounced from Thursday’s lows, with technical factors seem like the main driver of the gains. The rise was apparently exaggerated in late-morning action as soybeans surged in response to an industry report confirming diminished Brazilian production. March corn rebounded 7.0 cents to $4.55/bushel late Friday morning, while May ran up 6.25 to $4.6075.

Soybeans reacted strongly to the latest Brazilian crop estimate. The soy complex seemed set to decline in the wake of Thursday’s huge reversal. However, the respected Brazilian firm Safras and Mercado essentially confirmed last week’s low Oil World figure, stating Brazil’s 2014 soybean harvest at 86.1 million tonnes, which is well below the latest USDA figure. That sent the soy complex mostly higher. March soybeans climbed 12.5 cents to $14.06/bushel around midsession Friday, while March soyoil rallied 0.47 cents to 41.37 cents/pound, and March soymeal rose $2.0 to $466.0/ton.

The wheat markets are also staging an impressive comeback. Thursday’s Egyptian announcement of a big wheat tender and the indicated U.S. shutout depressed futures, but prices firmed technically in early Friday action. The Brazilian soybean news and the bean market’s bullish seemingly exaggerated the wheat resurgence. March CBOT wheat futures leapt 15.0 cents to $5.9725/bushel just before midday Friday, while March KCBT wheat futures surged 12.75 cents to $6.75, and March MWE futures soared 15.5 to $6.71.

Surging beef prices appeared to encourage cattle market bulls. Cattle futures seemed to lose their upward momentum after cash trading got started this week. Traders may have thought that marked a market top. However, wholesale beef prices are surging again today, which probably persuaded bulls that the peak may not be in yet. April cattle futures surged 0.97 to 145.42 cents/pound Friday morning, while August advanced 0.47 to 133.07. Meanwhile, March feeder cattle gained 0.20 cents to 172.02 cents/pound, and May added 0.12 to 174.10.

Bulls remain in control of the hog pit. Ongoing cash and wholesale pork gains spurred hog futures sharply higher again Friday morning. Bullish expectations built upon robust demand and seasonally tightening supplies are rather obviously firing bullish imaginations. April hogs rocketed up 2.90 cents to 106.75 cents/pound late Friday morning, while June spiked 2.10 to 112.02.

Chinese news undercut cotton futures Friday morning. Cotton futures bounced from technical support Thursday, with equity market gains and U.S. dollar weakness contributing to the rise. However, futures reversed to the downside overnight in reaction to talk that Chinese officials will soon cut the asking price for fiber being sold out of state reserves. A surge in supplies of that low quality cotton could undercut markets rather badly. May cotton dropped 0.71 cents to 87.10 cents/pound just after noon (EST) Friday, while December cotton sank 0.26 cents to 77.58.

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