Corn futures continued sliding Friday morning. Corn futures continued the decline begun after Thursday’s monthly USDA reports, since those held bearish implications for the 2013/14 supply outlook. Bulls’ inability to push most-active December futures above chart resistance probably exaggerated selling. December corn fell 7.5 cents to $4.5875/bushel around midsession Friday, while May lost 7.5 cents to $4.7825.
The soy complex set back from Thursday’s highs in early Friday trading. Although the expiring September bean contract soared as it approached expiration, the rest of the soy complex declined this morning. Thursday’s USDA reports were quite bullish for the legume markets, but traders may now suspect their immediate reaction was overdone. Others may simply be taking profits before the weekend. November soybeans slid 8.0 cents to $13.88/bushel by late Friday morning, while October soyoil dove 0.42 cents to 42.36 cents/pound, and October soymeal dipped $1.3 to $447.9/ton.
The wheat markets turned decidedly lower this morning. Thursday’s USDA reports were generally bearish for the wheat outlook, but surging soybeans seemed to boost golden grain values as well. Unfortunately for farmers, that support evaporated Friday morning, thereby sparking substantial losses at the three Midwest markets. December CBOT wheat tumbled 12.0 cents to $6.41/bushel just before lunchtime Friday, and December KCBT wheat plunged 9.75 cents to $6.92, while December MGE futures sank 7.75 cents to $7.07.
Cash news apparently boosted cattle futures in early trading. Weak prices in the wholesale and futures markets seemed to bode ill for the short-term outlook. However, Thursday evening news that packers had paid steady money for Southern Plains cattle seems quite encouraging. Today’s CME gains almost surely reflect that. October cattle futures rallied 0.32 cents to 125.15 cents/pound Friday morning, while December added 0.22 to 128.85. Meanwhile, October feeder cattle advanced 0.35 cents to 158.95 cents/pound, and January moved up 0.30 cents to 159.40.
The CME hog market also benefited from cash strength. Recent cash strength encouraged hog traders again Friday morning, but the wholesale markets are proving much less supportive. That’s probably why bulls were able to sustain only a portion of the early CME surge. October hog futures had climbed 0.45 cents to 90.65 cents/pound late Friday morning, while December managed a 0.02-cent gain to 87.30.