Ag markets posted mixed results Friday morning

Corn futures dipped Friday morning. Recent gains have suggested that the harvest lows for corn are now in, which has probably spurred a cycle of short-covering and added advances. However, bulls have to be concerned that this week's Chinese cancellations of U.S. cargoes due to unapproved GMO contamination will substantially curtail shipments to that country during the weeks ahead. March corn futures were trading 0.75 cent lower at $4.3275/bushel around midsession Friday and May had dipped 0.75 to $4.4125.

Improved South American production prospects are depressing the soy complex. Recent rains have reportedly improved production prospects for the major South American production rather substantially, thereby prompting widespread selling at the CBOT. That news apparently overwhelmed the bullish connotations of a sizeable bean sale posted early this morning. January soybeans fell 5.75 cents to $13.2225/bushel by late Friday morning, while January soyoil sagged 0.08 cents to 40.53 cents/pound, and January soymeal slid $1.8 to $426.3/ton.

Wheat futures were mixed around midday Friday. Ideas that this week's wheat losses were overdone seemingly supported wheat this morning. Traders may be thinking the market will sustain a rebound from the lows hit this week. Still, production estimates are huge and might be revised upward on next Tuesday's WASDE report. March CBOT wheat futures skidded 1.5 cents to $6.505/bushel just before lunchtime Friday, while March KCBT wheat futures edged down 0.75 cent to $6.945, and March MWE futures slipped 2.25 to $6.82.

Cattle futures remained weak after Thursday's ugly breakdown. The cattle market had numerous reasons to break out to the upside Thursday, but fell sharply instead. The CME drop also prompted cash weakness across the Great Plains, thereby adding to the downward pressure. Ultimately, demand concerns, as emphasized by midday wholesale weakness, appear to be weighing upon the market. February cattle futures slid 0.05 cents to 132.85 cents/pound by late Friday morning, while the April contract lost 0.02 to 133.72. Meanwhile, January feeder cattle rose 0.22 cents to 164.35 cents/pound, while March feeders gained 0.17 to 164.60.

Hog futures remained generally weak. This week's decline in direct market priced continued Thursday, thereby weighing rather heavily upon CME futures. Wholesale values fell sharply on the midday report, thereby keeping CME prices under pressure. February hog futures declined 0.17 cents at 88.50 cents/pound early Friday morning, while June sank 0.05 to 99.45.


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