Corn futures finished strongly higher on Friday. The market pushed higher on spillover support from wheat and the pullback in the value of the dollar. Adding support were continued concerns over dry weather in Argentina decreasing corn production for the second largest corn exporter. Forecasts show the dry conditions in Argentina will likely continue over the next week. March was 18 cents higher at $5.73 1/2 and May was 17 cents higher at $5.80 1/2.
Soybean futures settled solidly higher Friday. Strength in the wheat market boosted soybean futures today. Adding support were losses in the value of the dollar and concerns over the dry conditions in Argentina lowering soybean crop prospects. Export demand remains strong and weakness in the dollar should be favorable for the export market. January was 20 1/2 cents higher at $13.00 1/4 and March was 19 1/4 cents higher at $13.07.
Wheat futures closed strongly higher Friday. Futures jumped higher amid concerns about tightening supplies of high protein wheat in light of weather problems in Australia. Heavy rains in eastern Australia are slowing wheat harvest and raising quality issues. Some projections show that 90% of the Australian wheat crop could be only feed quality. Also supportive are forecasts for dry weather over the next week to ten days in the western U.S. Plains. CBOT March was 30 1/2 cents higher at $7.79, KCBT March was 20 1/4 cents higher at $8.22 and MGE March was 22 cents higher at $8.35 1/4.
Cattle futures settled mixed Friday. Prices recovered after dipping lower on profit-taking this morning following the two-year high that was hit mid-week. The boost in futures was supported by ideas that trade talks with South Korea could lead to an increase in exports. Cash market fundamentals remain bullish. Cash trade rallied as high as $104 this week. December was 10 cents higher at $103.18 and February was 10 cents lower at $106.38.
Lean hog futures closed higher Friday. Strength in the corn market and weakness in the value of the dollar lent support to hog futures, which were down this morning amid concerns that pork demand could be seasonally sluggish over the next couple of weeks. Also supportive were cash markets, with cutouts up $1.78 on Thursday. February was 58 cents higher at $76.58 and April was 35 cents higher at $80.28.