Corn futures were modestly lower Friday morning. The potential for benign midsummer weather is still weighing upon corn prices, since the benign conditions could contribute to a record harvest. However, traders seemed to be reducing short positions before the weekend, since changing forecasts might send prices higher early next week. September corn futures edged 0.25 cent higher to $5.40/bushel around midsession Friday, while December lost 2.0 cents to $4.9875.

The tight old crop situation continues supporting the soybean market. Soybeans are also feeling downward pressure from favorable summer weather, especially with corn leading the way lower. However, the current old-crop shortage is supporting nearby futures, which in turned seemed to spill over into the deferred contracts. August soybean futures leapt 20.24 cents to $14.905/bushel late Friday morning, while August soyoil bounced 0.02 cents to 45.54 cents/pound, and August soymeal climbed $13.4 to $483.8/ton.

Renewed export hopes apparently boosted wheat futures Friday morning. Earlier in the day the USDA announced that a private seller had sold 120,000 tonnes of soft red winter wheat to China, thereby reminding traders that the Asian giant may need a great deal more grain during the coming weeks and months. Some contracts are suffering from the prospect of favorable summer weather, thereby implying a big spring wheat crop later this year. September CBOT wheat rose 4.5 cents to $6.65/bushel just before lunchtime Friday, while September KCBT wheat gained 3.25 cents to $7.055 and September MGE futures added 3.0 cent to $7.5325.

Cattle futures gave back a portion of the Thursday advance Friday morning. Bulls proved able to sustain a portion of the big Thursday rally, which probably persuaded cattlemen to again take steady money for their animals this morning. That is, fed cattle in the Southern Plains reportedly changed hands around $119/cwt (cents/pound) late Friday morning. That steady result likely disappointed CME bulls. Meanwhile, weak corn prices probably encouraged feeder buying. August cattle dipped 0.12 cents to 121.97 cents/pound in late-morning action Friday, while December skidded 0.17 cents to 128.70. August feeder futures rallied 0.52 cents to 152.60 cents/pound, while November inched up 0.35 cents to 158.25.

CME hog prices declined in concert with cattle Friday morning. Bullish hog traders have very likely been hoping resurgent cattle and beef prices would support the hog and pork complex during the coming weeks and months. Thus, the cash cattle weakness, along with slippage in Corn Belt swine values, may help explain the weakness experienced by hog futures this morning. August hog futures slid 0.15 cents to 96.47 cents/pound around midsession Friday, while December sank 0.52 cents higher to 82.02.