Corn futures are 1 to 3 cents higher. December futures tested Thursday’s low at $3.915 in the overnight trade, but have moved to the plus side early this morning. Futures have compiled a losing streak of eight consecutive lower closes. The most recent leg down began with USDA’s reports on June 30. Could USDA’s next report, a supply/demand update at 11:00 am CDT today, mark a near-term low? USDA is expected to raise raised projected ending stocks for 13/14 by about 85 million bushels to 1.232 billion and 14/15 ending stocks by 50 million to 1.774 billion. USDA may boost their yield estimate from their current estimate of 165.3 b/a based on historically high crop ratings. September corn is 1.5 cents higher to $3.8775/bushel, while December is 1.25 cents higher to $3.94.
Soybean futures rebounded led by nearby contracts on Friday morning in response to some buying interests after the recent sharp declines. The new-crop November contracts struggled to stabilize around the psychologically key $11 level. However, the pressure is mainly from the possibility that the harvest will set a new production record due to the beneficial weather. Thursday’s export sales for new crop were above trade expectations. Soyoil might be depressed by the lower palm oil values. USDA will issue its July supply and demand report at 11:00 central time and we are expecting higher ending stocks for the 2014/15 crop year. August soybeans gained 3.5 cents to $12.3625/bushel, and November advanced 1.25 cents to $10.94. August soyoil fell 0.15 cents to 37.33 cents/pound, while August soymeal surged $3.2 to $402.5/ton.
Wheat futures were mostly lower in overnight trading. KC hard red winter wheat futures dropped nearly 1 percent in the fourth straight session on Thursday as harvest in key winter wheat state Kansas is wrapping up in a week if weather permits. Surging supplies and poor demand weighed on the markets. In today’s WASDE report, USDA is expected to boost all wheat production to 1.972 billion bushels from June forecast at 1,943 million bushels with spring and durum wheat at 544 million and 59 million respectively. September CBOT wheat remained unchanged at $5.485 bushel, September KCBT wheat futures dropped 0.25 cents to $6.47/bushel and September MWE futures skidded 0.25 cents to $6.4075.
Cattle futures are mixed. August futures have plunged nearly 7 cents/pound over the past three days as a wave a profit-taking from the trading funds and speculative sectors hit the market. The selling pressure was triggered as futures fell below near-term chart support levels which sparked additional selling. Cash cattle sold at $156 in Nebraska, down $1 to $2 from Wednesday and down $2 from last week. In Kansas, fed cattle traded at $156, down $2 from last week while Texas cattle were $2 to $3 lower at $155 to $156. Futures are garnering support from higher beef prices. The Choice cutout was up again Thursday, climbing $1.60/cwt to $252.17, another new high. Even with the lower cash trade, futures are at a steep discount to the cash market. August live cattle are 0.20 cents higher to 148.35 cents/pound while December is 0.35 cents lower to 152.05 cents. Meanwhile, August feeder cattle are 1.62 cents lower to 208.97 cents/pound.
Hogs futures moved lower along with the overall weakness exhibited in cattle futures. Although some gains appeared in the cash market, losses in whole sale market probably depressed the futures. Hog traders seemingly decided that last week’s big gains were overdone. Anticipation of roaring supplies has probably weighed on the market. August hog futures were down 0.4 cents at 127.55 cents/pound and December was down 0.9 cents to 103.05 cents.
After bottomed out to the two-year lows on Thursday, the cotton futures continued sliding on early Friday morning. Bulls appeared to be discouraged by the market expectation that USDA will boost the 14/15 US cotton supply. However, the concurrent US currency weakness posted opposing effect. December cotton lost 0.43 cent to 68.12 cents per pound. March cotton dipped 0.37 cents at 69.02 cents/lb.