Advances in the U.S. dollar seems to be outweighing weather concerns in the grain markets late Friday morning. While some areas could benefit from dryness, additional rainfall could also support promising crop development. The 6-10 weather outlook calls for temps near to above normal and rainfall near normal. The US Dollar index rose by 1.1% in response to a stronger than expected jobs report. July corn lost 1 cent to $3.625/bushel late Friday morning, and December also slid 1 cent to $3.80.
Soybean and meal futures are mixed this morning and seem to be paralyzed by opposing factors. For example, traders may be confused as to the impact of short-term rainfall knowing it could delay late planting, but alternatively, it may encourage yields in already planted acres. Similarly, the bullish recent export report that stated record soybean meal shipments of 262,000 tonnes could be offset by the surge in the U.S Dollar approaching noon Friday. Soyoil seemed to follow Asian palm prices higher. July soybean futures sagged 6.25 cents to $9.4025/bushel late Friday morning, while July soyoil rallied 0.32 cents to 34.85 cents/pound, and July meal skidded $0.2 to $305.5/ton.
Rainfall and crop condition concerns seem to be instrumental in the continued rise in wheat futures this week. Chicago spot wheat is nearing a 10 percent rise so far this week, it’s best weekly gain since July 2012. Yesterday, investors became skittish about global wheat supplies due to heavy rains in the southern U.S. Plains and frost concerns in Canada. Even so, wheat is trading fairly neutral late Friday morning, despite today’s report of moderate amounts of the fungal disease, Fusarium, in the Kansas wheat crop. July CBOT wheat futures gained 0.75 cents to $5.245/bushel late morning on Friday, while July KC wheat gained 3.25 cents to $5.445/bushel, and July MWE added 3.25 lowed to $5.79.
Live cattle futures traded higher again Friday morning apparently on cash beef firmness. That may reflect the onset of retailer buying for features Independence Day weekend. As usual, late-week CME action is heavily dependent upon Friday cash action, news concerning which has been minimal (also as usual). August cattle futures jumped .67 cents to 152.12 cents/pound as late Friday morning, while December futures gained 0.5 cents to 154.57. Meanwhile, August feeder cattle futures rose 0.85 cents to 223.242 cents/pound, and November feeders climbed 0.45 to 218.37.
Hog futures revered yesterday’s decline and climbed higher Friday morning despite persistent cash and wholesale weakness. The traditional early-summer rally may be supports hog futures as traders anticipate summer demand. July support at the 80.00 cent level appears to be supporting lean hogs late Friday morning. August hog futures increased 1.1 cents to 80.72 cents/pound approaching midday Friday, while December added .77 to 66.42.
Friday morning’s U.S. dollar advance may be weighing on cotton futures. Recent U.S. dollar losses have seemingly offered support for cotton futures, as traders relied on the cheaper greenback to make American cotton more attractive to export customers. However, the dollar staged a significant comeback Thursday and again Friday late morning. Little fresh news pertaining to cotton apart from recent worries of late Texas plantings and a fairly strong export picture. July cotton tumbled 1.09 cents to 64.03 cents/pound in late Friday morning trading, and December futures slumped 0.95 to 64.33.