Advances in the U.S. Dollar seemed to outweigh weather concerns in the grain markets Friday. While some areas could benefit from dryness, additional rainfall could also support promising crop development. The 6-10 day weather outlook calls for temps near to above normal and rainfall near normal. The US Dollar index rose by .7% and was up by as much as 1.1% in response to a stronger than expected jobs report. July corn lost 3 cents closing at $3.605/bushel and December slid 3 cents to $3.78.
Soybean and meal futures were mixed on Friday and appeared 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 boost yields in already planted acres. Similarly, the bullish recent export report that stated record soybean meal shipments of 262,000 tonnes, an over 80% increase in the weekly average, was apparently offset by the surge in the U.S Dollar at the close Friday. Soyoil seemed to follow Asian palm prices higher. July soybean futures dropped 8.75 cents to $9.3775/bushel at the close Friday, while July soyoil rallied 0.25 cents to 34.78 cents/pound, and July meal skidded $0.8 to $304.9/ton.
Although rainfall and crop condition concerns have persisted, wheat closed lower perhaps on USD strength. Chicago spot wheat neared a 10 percent rise this week, its 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 traded lower at the close Friday, despite today’s report of moderate amounts of the fungal disease, Fusarium, in the Kansas wheat crop. July CBOT wheat futures dropped 6.75 cents to $5.17/bushel at the end of the trading session Friday, while July KC wheat declined 5.75 cents to $5.3525/bushel, and July MWE lowered 4.25 to $5.715.
Live cattle futures traded higher again during the day Friday but settled lower despite news of firmness in the cash market. That may reflect a seasonal shift as wholesalers might be nearing coverage as Independence Day weekend quickly approaches. As usual, late-week CME action is heavily dependent upon the Friday cash market, news concerning which has been minimal (also as usual). August cattle futures sagged .50 cents to 150.57 cents/pound at the close Friday, while December futures declined 0.2 cents to 153.75. Meanwhile, August feeder cattle futures dropped 0.40 cents to 221.90 cents/pound, and November feeders lost 0.07 cents to close at 217.75.
Hog futures reversed 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 gained 1.27 cents to 80.82 cents/pound at the close Friday, while December added .65 to 67.20.
Friday’s U.S. Dollar advance seemed to weigh 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. Little fresh news pertaining to cotton has emerged apart from recent worries of late Texas plantings and a fairly strong export picture. July cotton tumbled .46 cents to 64.66 cents/pound at the end of session Friday, and December futures slumped 0.41 to 64.87.