Weakness continued in overnight trading in the grain markets as outlook for this year’s grain crops remains positive. Higher old crop corn ending stocks in the recent report exceeded expectations, likely putting pressure on prices. The U.S. Dollar Index firmed .41% to 95.48 . July corn lowered 1 cent to $3.555/bushel early morning Friday and December dropped 1.25 cents to $3.73.
The soy complex lost ground overnight and is trading lower this Friday morning. Consensus may be building that planted soybean acres may not be significantly affected by the rain as much as feared, particularly since the 6-10 day weather picture is favorable in most of the Midwest, except for some parts of KS and MO. The trade now awaits the June 30 planted acres report for direction. July soybean futures declined 1.5 cents to $9.38/bushel at sunrise Friday, while July soyoil gained 0.05 cents to 33.34 cents/pound, and July meal dipped $0.4 to $313.0/ton.
Wheat futures firmed slightly overnight after a sharp decline the past few days. The downturn came after the USDA forecasted winter wheat production a bit higher that the trade was expecting. Also, they projected the 2015-16 ending stocks to be 814 million bushels, 21 million bushels above estimates. Even so, the markets can have a tendency to overshoot a directional trade and often they bounce back, accordingly, to some equilibrium. July CBOT wheat futures are up 0.75 cents to $5.05/bushel before the open Friday morning, while July KC wheat rose 2 cents to $5.2525/bushel, and July MWE gained 1.5 cents to $5.6425.
Cattle futures may be neutral to higher Friday after they retreated Thursday despite a slight increase in beef cutout values. Wholesale beef prices have been strengthening in recent weeks and an end-of-week consolidation on technicals is not uncommon. August cattle futures lost 0.37 cents to 153.15 cents/pound at the end of trading Thursday, while December futures lowered 0.22 cents to 156.15. Meanwhile, August feeder cattle futures slumped .52 cents to 226.25 cents/pound, and November feeders fell .35 cents to 220.45.
Lean hogs may be firmer to lower at the open Friday morning as packers and retailers fail to be impressed by pork demand this summer. The USDA reported wholesale price weakness yesterday perhaps as wholesalers complete coverage for the impending Independence Day holiday. The market will continue to watch and adjust as pork supplies reach their seasonal lows around the same time that pork demand for the year reaches its highest level. August hog futures fell .92 cents to 78.32 cents/pound atthe close Thursday, while December slumped 0.85 to 65.87.
Cotton futures traded mixed overnight with nearby futures trading near neutral. The lower trade yesterday could have be a lag effect in response the extracting any meaningful conclusions cotton traders may have gleaned from the USDA’s June supply and demand report. The report increased U.S. exports for the current season, thereby lowering ending stocks by the sameamount. The report also increased the world new crop by 70,000 bales over last month’s update and increased consumption by 20,000 bales. July cotton futures edged higher 0.04 cents to 63.53 cents/pound early morning Friday, while December gained 0.03 to 64.41.