Ag markets moved mostly lower again Thursday night

Favorable weather continues weighing upon corn futures. Widespread rainfall is falling on the eastern Corn Belt this morning and precipitation is expected both next week and the week after. Thus, it looks like the corn crop will finish well, thereby potentially boosting yields. September corn sagged 1.5 cents to $3.58/bushel Thursday night, while December dipped 1.75 to $3.695.

The soy complex proved quite mixed in overnight action. News of strong Chinese bean imports offered fresh support for old-crop prices, but wet short-term forecasts continue weighing on new-crop prices. Record yields coming on record acreage imply a record-crushing harvest this fall. September soybean futures surged 5.75 cents to $11.05/bushel early Friday morning, while November futures stalled at $10.78. September soyoil drooped 0.13 cents to 35.57 cents/pound, whereas September soymeal edged up $2.6 to $366.7/ton.

The wheat markets continued Thursday's slide. The prospect of good growing weather for the spring wheat crop seemed to weigh upon the golden grain markets. Traders may also be exiting positions prior to the weekend, since big USDA crop reports are looming next Tuesday. Concerns about Russian adventurism in Ukraine seem muted at this point, but that may change before the day ends. September CBOT wheat slipped 0.75 cent to $5.6075/bushel just after dawn Friday, while September KC wheat slid 2.0 cents to $6.4425/bushel, and September MWE wheat inched 0.75 lower to $6.3375.

Weak Nebraska trade is again weighing on cattle futures. CME cattle prices plunged Thursday in response to news of weak Nebraska trading Wednesday afternoon. Western Plains cash prices fell even farther yesterday, which probably explains the overnight follow-through to the downside. October live cattle dropped 0.45 cents to 152.55 cents/pound in early Friday trading, while December stumbled 0.27 to 152.97. Meanwhile, September feeder futures dove 1.75 cents to 215.97 cents/pound, and November feeders plunged 1.75 to 213.85.

Hog futures continued their breakdown. Pork prices ended Thursday quite firmly, but yesterday's resumption of the ongoing cash breakdown that inspired big CME losses kept the pressure on the Chicago market. The big discounts already built into futures are apparently doing little to discourage traders. October hog futures fell 1.15 cents to 99.10 cents/pound early Friday morning, while December tumbled 1.17 cents to 90.65.

The cotton market firmed again Thursday night. Despite forecasts for Southern Plains rainfall in mid-August, cotton futures rebounded from Thursday's slippage last night. There was little apparent news concerning the fiber market, but one wonder if talk of strong Chinese soy buying generated similar ideas concerning fiber. December cotton bounced 0.44 cents to 64.46 cents/pound shortly after sunrise Friday, while March futures ran up 0.45 cents to 65.28.


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