Crop markets seemed to be waiting for Friday's early reports
Corn futures bounced slightly in early Friday trading. After declining to three-week lows Thursday, the corn market seemed ready for an early-morning rebound this morning. Traders were probably unwilling to extend positions ahead of the looming release of the weekly USDA Export Sales report and the monthly Employment report at 7:30 AM CDT. December corn edged up 2.0 cents to $4.63/bushel around dawn Friday, while July added 1.75 cents to $4.905.
The soy complex posted modest overnight gains. The short-term weather outlook still seems likely to continue hurting the productive capacity of the current soybean crop, so it wasn’t surprising to see futures trying to build upon Thursday’s late rally. The fact that nearby bean futures surged after partially filling the August 26 chart gap seems technically important as well. November soybeans rallied 4.25 cents to $13.7175/bushel early Friday morning, while October soyoil jumped 0.44 cents to 43.70 cents/pound, and October soymeal climbed $0.7 to $435.3/ton.
Wheat futures rose in concert with corn and beans Friday morning. Overnight news seemed supportive of the wheat market, particularly with Egypt buying some U.S. grain after having relied upon Eastern European origins in recent weeks. Strength spilling over from the corn and soy markets didn’t hurt either. December CBOT wheat gained 3.75 cents to $6.44/bushel in early Friday trading, while December KCBT wheat rose 3.75 cents lower to $6.93 and December MGE futures moved up 4.25 cents to $7.155.
Cattle futures continued their recent decline Thursday night. Beef prices dipped yesterday, thereby contradicting the widespread belief that rising cash and wholesale values will power a seasonal cattle/beef price advance during the days and weeks ahead. Traders are now concerned about the potential for another cash market decline this week. October cattle futures dipped 0.10 cents to 125.12 cents/pound around sunrise Friday, while December slumped 0.22 cents to 128.90. October feeder cattle fell 0.60 cents to 158.20 cents/pound, and January lost 0.67 cents to 157.60.
Hog futures moved lower in early Friday trading. Both the cash and wholesale markets had recently proven quite strong, so hog traders have been hoping recent slaughter reductions and firm post-Labor Day demand will power a sizeable September rally. However, yesterday’s late reports indicated sharp country and pork market losses, which extended Thursday’s bearish CME reversal. October hog futures settled were steady at 89.40 cents/pound early Friday morning, while December dropped 0.22 cents to 85.70.
Cotton futures followed the crop markets higher in overnight action. The recent dearth of cotton news has been even worse than that for grains, but that didn’t prevent prices from rising with them this morning. Ultimately, traders seem unwilling to buy aggressively until they see some fresh bullish information. They might get that when the weekly USDA Export Sales report is released later this morning. December cotton futures inched up 0.07 cents to 82.37 cents/pound just after sunrise Friday, while March added 0.06 to 81.95.