Soybean futures rebound into the close on Friday
Corn futures traded lower on Friday. The bullish momentum in the market was lost after hitting four-week highs early on Thursday. Futures were pressured by strength in the dollar and weakness in crude oil and equity markets. Further losses were prevented by USDA’s projections for tight ending stocks of corn in the U.S. this marketing year. March closed 6 3/4 cents lower at $6.30 1/4 and December was 10 1/4 cents lower at $5.57 3/4.
Soybean futures closed slightly higher on Friday after spending most of the day lower. The late session rally was attributed to forecasts calling for some hot and dry weather in southern Brazil. Soybean oil also got a boost from talk that Brazil may increase its biodiesel mandate later this year. In addition, USDA confirmed the sales of 120,000 metric tons of soybeans to China. Gains were limited by strength in the dollar and weakness in crude oil and equities. March ended 1 1/2 cents higher at $12.29 and November was 1 cent higher at $12.39 1/2.
Wheat futures settled lower on Friday. The rally in the dollar index and weakness in the stock market weighed on commodity markets. There is renewed concern about the debt problems in Greece. Bearish global supply/demand fundamentals remain an underlying bearish factor. USDA raised its global ending stocks projection this week by more than 3 million metric tons to a new record high level. CBOT March ended 16 cents lower at $6.30, KCBT March was 19 cents lower at $6.73 and MGE march closed 17 1/2 cents lower at $8.14 1/4.
Cattle futures traded solidly lower on Friday. Reports of cash trade developing at $123 in Nebraska, down $1 from last week and outside markets weighed on futures. Packer processing margins remain deep in the red and packers have either slowed slaughter or waited for the lower bids to fill slaughter schedules. February ended $1.23 lower at $123.95 and April was $1.40 lower at $126.80.
Lean hog futures closed lower on Friday. Profit-taking from the gains on Thursday and the weak tone in pork cutouts and the cash market weighed on futures. Packer margins remain poor. Supplies of market ready hogs are tightening, but until processing margins improve the tone in the cash market is expected to remain weak. February ended 45 cents lower at $86.85 and April was $1.35 lower at $88.30.