Livestock markets outperformed crop futures Thursday night
Expectations for a large US corn harvest continue weighing upon futures. Talk of surprisingly abundant yields has seemed to exert persistent pressure upon corn prices lately. However, traders also have active exports on their minds. That probably provided the basis for the overnight bounce, which apparently stemmed from talk about rainy Corn Belt weather next week. December corn futures rose 0.5 cent to $4.4075 early Friday morning, while May futures added 0.25 cent to $4.6125.
Soybeans proved surprisingly weak Thursday night. After soybeans and oil posted firm showing in Asian last night, Chicago traders were likely expecting similar gains. And yet soybean futures dipped in the early morning hours. Traders may be paying more attention to the current accelerated harvest pace and strong yields than to ideas that next week’s weather will slow the gather. November soybean futures slid 1.75 cents to $13.08/bushel around dawn Friday, while December soyoil slipped 0.02 cents to 41.11 cents/pound, and December soymeal gained $0.8 to $426.8/ton.
Wheat futures moved mostly higher early Friday morning. The golden grain markets suffered from a general dearth of news overnight, which probably caused traders to look to recent trends for direction. Thus, while talk of improved planting conditions in the Black Sea region may have encouraged bears, louder chatter about tough growing conditions in other areas and strong global demand may have carried the day. December CBOT wheat futures rallied 2.75 cents to $6.9925/bushel Thursday night, while December KCBT wheat futures edged 1.75 cents higher to $7.66 and December MWE futures lifted 1.25 cents to $7.5325.
Cattle futures sustained their recent uptrend. The cash and wholesale strength lately are almost surely encouraging bulls in the CME pit. Thus, while beef values rose only modestly Thursday afternoon, live cattle futures continued their late advance. December cattle climbed 0.37 cents to 133.25 cents/pound in early Friday morning action, while April moved up 0.17 to 135.10. November feeder cattle advanced 0.25 cents to 167.20 cents/pound and January feeders ran up 0.32 to 167.02.
Renewed talk of spreading PEDV infections boosted hog futures again overnight. Although short-term price prospects for the hog and pork complex seem less than encouraging at this point, a recent increase in the number of new porcine epidemic diarrhea virus (PEDV) cases is reportedly powering the current futures advance. December hog futures rallied 0.47 cents to 90.07 cents/pound in early Friday action, while April slipped 0.02 cents to 92.90 cents/pound.
This week’s cotton slump continued Thursday night. As with the other markets, there was little fresh cotton news last night. That seemingly encouraged a resumption of this week’s broad selling. However, traders are probably expecting profit taking and short covering before the weekend, which may have limited losses. December cotton futures sank 0.27 cents to 78.94 cents/pound around sunrise Friday, while March cotton skidded 0.15 cents to 80.65.