Mixed action reighed over the ag markets Friday morning

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Corn futures dipped in response to Friday’s USDA data. After giving a taste of their long-term data Thursday, the USDA released the full report early this morning. Forecast 2014 corn acreage at 79.5 million acres didn’t change, but the other numbers seemed somewhat bearish. 2014/15 carryout was stated at 2.111 billion bushels. That news was followed by the weekly Export Sales data, which disappointed traders. March corn slid 1.75 cents to $4.54/bushel late Friday morning, while May lost 2.0 to $4.6025.

Talk of South American dryness may be boosting soybeans. The 2014 data on the USDA long-term outlook also seemed to weigh on soybeans in early Friday trading. The USDA reiterated its acreage forecast at 79.5 million acres, with the 2014 crop at 3.55 billion bushels and 14/15 carryout at 285 million. The weekly Export Sales report seemed mixed, with weak bean sales being offset by a big meal number. Ultimately, fresh talk of emerging South America seemed to push beans higher by late morning. March soybeans bounced 5.5 cents to $13.6375/bushel around midday Friday, while March soyoil rallied 0.14 cents to 40.71 cents/pound, and March soymeal rose $2.9 to $453.8/ton.

USDA’s export data probably depressed the wheat markets. The USDA again stated its 2014 wheat acreage forecast at 55.5 million acres at today’s outlook forum, with the forthcoming crop stated at 2.160 billion bushels and 14/15 carryout at 587 million bu. Futures remained weak versus Thursday’s close, then turned even lower after the weekly Export Sales report was released. Having the numbers come in at the lower end of forecasts likely disappointed traders. March CBOT wheat futures skidded 2.0 cents to $6.1425/bushel just before lunchtime Friday, while March KCBT wheat futures sank 3.75 cent to $6.88, and March MWE futures tumbled 6.5 to $6.7525.

Cattle futures may be reacting to country market developments. This week’s wholesale strength and firm opening bids by beef packers boosted CME cattle prices earlier this week. However, prices turned decidedly lower Friday morning. We suspect producers lowered their asking prices slightly, thereby causing market bulls to back away from previously established positions. April cattle futures fell 0.67 cents to 141.20 cents/pound in late Friday morning action, while August dropped 0.52 to 131.17. Meanwhile, March feeder cattle slumped 0.42 cents to 170.70 cents/pound, and May dove 0.60 to 172.00.

Big cash and wholesale gains are boosting nearby hog futures. Bullish hog traders have been anticipating strong increases in hog and pork prices for weeks and are finally getting those late this week. Cash values, as well as pork cutout, jumped Thursday, which is rather obviously causing traders to look for more of the same. April hogs leapt 0.97 cents to 98.80 cents/pound late Friday morning, while June added 0.17 at 107.95.


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