Corn futures fell sharply on Friday in response to USDA's larger than expected crop production estimate. Production is estimated at 10.976 billion bushel, down 136 million from a year ago, but about 180 million bushels above trade estimates. September futures were down 14 cents at $2.24 3/4. December also settled 14 cents lower at $2.41 3/4.

Soybean futures closed lower on Friday. After briefly trading higher, the market turned weak. USDA's production and carryout numbers were supportive relative to market expectations. However, spillover weakness in corn and favorable Midwest weather since USDA's August 1 survey weighed on the market. September closed 6 cents lower at $5.51 and November ended 6 cents lower at $5.68 1/4.



Wheat futures were sharply lower on Friday. The KCBT and CBOT fell to the lowest level since early May while the MGE slipped to the lowest level since mid June. The USDA Crop Production report sparked the steep selloff. Estimated wheat production dipped to 1.801 billion bushels, down 5 million bushels from last month while traders were expecting a 40 million bushel decline. CBOT Sep was down 12 3/4 cents at $3.73 3/4, KCBT Sep fell 15 cents to close at $4.54 1/4. MGE Sep was 15 1/4 cents lower at $4.57.



Cattle futures ended mixed on Friday. The market took a breather today after rocketing higher this week. Cash cattle jumped to the $85 to $86 range, up $3 to $4 from last week and up $7 to $8 since the summer lows. Boxed beef cutout values climbed strongly higher, as retailers begin looking ahead to the Labor Day weekend. August climbed 32 points to close at $88.80 while October was 17 points higher at $92.55. August feeder cattle were down 5 points to close at $117.35.



Lean hog futures closed mixed on Friday. Nearby contracts ended up while deferreds posted small losses. Most of the trading was position evening ahead of the weekend. There was no new news to give the market direction. October ended 10 cents higher at $64.50. December was down 3 cents, settling at $62.03.