Corn futures were quiet Friday morning ahead of a slow holiday week, down 1 and just 7 cents from the low. Better than expected corn export sales Thursday weren’t enough to lift a market weighed by a world awash in corn and exports that remain behind pace. Support level is at the Dec contract low of 3.56 while resistance is seen at the 3.70 level, the 20-day morning average. Thanksgiving week through the end of the year will likely mark quieter sessions as many in the trade limit activity. The dollar gained .32% to 99.3 while gold and brent crude were both higher. December corn futures were down 1 cent to $3.6325 on early Friday, while March lost 0.75 cents to $3.6925.
Soybeans futures closed up on Thursday but down from session highs. Prices were supported from a bullish weekly export report that exceeded trade expectations. Soybean net export sales are 66.1 mil bu up 39% from last week and up 23% from prior 4 week average. Exports are 83.4 mil bu down 9% from last week and down 5% from the prior 4 week average. Soybean Meal net export sales are 224,100 mil tonnes up 8% from last week but down 4% from the prior 4 week average. Exports are 206,400 mil tonnes down 5% from last week, but up 1% from the prior 4 week average. Soy Oil net export sales are 37,700 mil tonnes up 30 percent from last week but down 12 % from the prior 4 week average. Exports are 48,600 mil tonnes, a marketing year high, up 69% from last week. Keeping the soybeans in check was the market rejecting the price movement above the 10 day moving average as technical selling quickly pressuring prices below the session highs. Soymeal strength began the day on bargain hunting and cash sellers reluctant to lower offers after recent declines in the futures levels. Soy oil followed the Soybean complex up but the rally kept under control with weakness in the palm oil market. January soybeans closed up 2 ¼ cents to $8.60 per bushel, December oil gained 11 points to $0.2755 per pound and December meal was up $1.00 at $286.60
Wheat futures finally broke the downward trend on Thursday closing higher for the first time in 5 sessions. Export data and bargain hunting help push prices to positive territory. Export net sales came in at 26.5 mil bu, a 3 ½ month high, and 11.8 mil bu above trade estimates upper range. Net exports are 12.7 mil bu up 45% from last week and up 46% from the prior 4 week average. Early morning bargain hunting helped push prices higher and with the help from a bullish export report and International Grains Council report kept prices off the March 2 month low of $4.82 bu. Dryness in the Ukraine for new crop plantings has forced the Ukraine Ag Ministry to put a limit on 2015/2016 wheat exports. The limit could potentially help push the US wheat back into the export market for the current year. Thursday, IGC cut the world wheat harvest area for 2016/2017 by 1% to 221.8 mil hectares. Similar to corn rallies will be limited as global supplies remains large. December CBOT wheat futures closed up 7 ½ cents to $4.90 ¾ /bushel on Thursday, while Dec KC wheat climbed 3 ¾ cents to $4.62 ½, and December MWE advanced 8 ¾ cents to $5.08 ¾.
Live cattle moved lower Thursday after attempting to rally Wednesday from new contract lows hit early this week. Trade estimates for Friday’s cattle on feed report are: On Feed 102.2%, Placed 96.0%, and Marketed 96.0%. Boxed beef cutouts continued lower with choice down 1.60 to 205.08 and select up 2.66 to 194.04. Cattle slaughter so far this week was at 433,000 head, compared to 433,000 head last week and 443,000 head this time last year. The Dec contract hit a new low Monday, near one cent lower than the low set last Tuesday. Competition from holiday ham and turkeys has dampened wholesale beef demand, adding pressure. December live cattle fell 1.22 cents to 129.90 cents/pound Thursday, while February futures lost 1.22 cents to 132.05. January feeder cattle fell 1.52 cents to 162.45 and March feeders lost 2.1 cents to 160.55.
Lean hog futures were mixed Thursday; nearby months higher and deferred months lower. Country hogs fell .57 lower to 49.70 and the lean hog index fell another 0.80% to 56.04, narrowing the cash/futures spread to under 1 cents. Dec hogs are within 2 cents of converging with the 20-day moving average. Average pork prices for October were $3.97, 4.2% lower than Oct 2014. Hog slaughter so far this week was at 1.748 million head, compared to 1.696 million last week and 1.708 million this time last year. Trading in the protein complex will remain choppy ahead of Thanksgiving. December hog futures gained 1.12 cents to 55.40 cents/pound at the close Thursday and April hogs gained 0.02 cents to 62.02.
ICE cotton futures were higher Thursday on technical trading and a lower dollar. On Monday, cotton crop progress was reported at 64% completed, compared to 58% last week and the 74% five-year average. Net upland cotton export sales were reported at 194,400 RB for 2015/16, up 52% from the previous week and up 74% from the four-year average. Net sales of 2015/16 Pima cotton were 15,900 RB, a marketing year high, up significantly from the previous week and the prior 4-week average. Exports of 7,200 RB were up 47% from last week and 54% from the 4-year average with destinations of Vietnam, India, Thailand, and China. December cotton futures gained 0.27 cents to 61.58 cents/pound, while May cotton gained 0.28 cents to 63.87.