Climbing livestock futures diverged from crop markets Thursday

Bearish conditions weighed on the crop markets again Thursday night. Anticipation of another massive U.S. corn crop is depressing prices, but prices have already fallen dramatically since spring. Weakness spilling over from the wheat and bean markets, as well as burgeoning U.S. dollar strength seem to be exaggerating current losses. December corn futures slipped 1.5 cent to $3.3675/bushel in early Friday trading, while May sagged 1.25 to $3.58.

Talk of outstanding yields is apparently depressing soy values. The latest news seemingly confirmed the strength of underlying demand for soybeans and products, but bulls couldn't generate a rally Thursday. Apparently the onset of the Corn Belt harvest, as well as talk of record yields is weighing on CBOT prices. November soybean futures slid 5.75 cents to $9.6575/bushel, while October soyoil slumped 0.13 cents to 32.59 cents/pound, and October soymeal dipped $3.8 to $325.0/ton.

Wheat prices continued feeling pressure. Thursday's export news was quite disappointing, since it confirmed the noncompetitive nature of current U.S. quotes on the global market. Persistent U.S. dollar strength is likely discouraging traders as well. December CBOT wheat sank 4.75 cents to $4.8375/bushel early Friday morning, while December KC wheat lost 4.0 cents to $5.6575/bushel, and December MWE wheat dropped 4.0 to $5.4625.

Cattle traders are probably awaiting cash news. CME live cattle futures have put in a mixed showing this week, with bears likely focusing upon wholesale weakness and bulls pointing to futures discounts below cash. Ultimately, the outcome of this week's cash trading will almost surely play a big role in the short-term outlook. Prices bounced modestly overnight. October live cattle futures rallied 0.10 cents to 155.70 cents/pound in predawn Friday action, while December futures skidded 0.07 to 158.85. Meanwhile, October feeder futures climbed 0.30 cents to 228.00 cents/pound, and January feeders advanced 0.40 to 220.10.

Soaring pork prices powered overnight hog gains. The cash hog and wholesale pork markets seemed to send topping signals earlier this week, thereby triggering sizeable CME losses at midweek. However, Thursday's late pork reports indicated a huge jump in pork cutout values, thereby triggering the strong Thursday night rebound. October hogs leapt 1.90 cents to 104.87 cents/pound early Friday morning, while December jumped 1.25 to 95.05.

Indian news may be weighing on cotton. Although USDA and Indian analysts apparently differ substantially on the size of that country's cotton production, an overnight report putting that country's 2014 cotton crop about 4.6 million bales over the latest USDA estimate is probably weighing on ICE futures this morning. US dollar strength isn't helping the bullish cause. December cotton futures declined 0.55 cents to 64.60 cents/pound shortly after sunrise Friday, while March futures tumbled 1.04 cents to 63.92.


Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.