A Russian rumor boosted crop prices Thursday night

A Russian rumor boosted crop prices overnight. Corn futures traded firmly Thursday evening as price bounced from their big midweek losses. However, a news report that Russian officials had proposed capping its wheat exports during the coming months triggered sizeable gains in the grain and soy markets. December corn futures rose 2.5 cents to $3.49/bushel in early Friday trading, while May added 1.75 to $3.70.

The soy complex proved traded mixed again Thursday night. The prospect of a massive U.S. soybean crop weighed heavily upon bean and meal futures Thursday, whereas soyoil futures joined the vegoil markets in trying to bottom. Overnight talk of capping Russian wheat exports also seemed to support the soy complex, although soyoil prices dipped once again. November soybean futures rebounded 5.75 cents to $10.09/bushel as Friday dawned over Chicago, while October soyoil skidded 0.02 cents to 31.98 cents/pound, and October soymeal gained $2.6 to $353.5/ton.

The Russian talk spurred big wheat gains. The wheat markets rallied in late-Thursday activity, which probably reflected trader worries about weekend events in the Black Sea region. The report, later denied, that Russian officials are considering a cap on wheat exports also boosted prices. December CBOT wheat advanced 6.5 cents to $5.37/bushel early Friday morning, while December KC wheat climbed 7.0 cents to $6.2725/bushel, and December MWE wheat bounced 6.0 to $6.14.

Cash strength is spurring additional CME cattle gains. Packers reportedly paid up for fed cattle Thursday evening. And while that was not unexpected, the fact that they paid significantly higher prices probably caused the resumption of recent gains. October live cattle futures jumped 1.22 cents to 158.27 cents/pound just after dawn Friday, while December futures lifted 0.57 to 159.07. Meanwhile, October feeder futures surged 0.67 cents to 222.67 cents/pound, and January feeders inched up 0.07 to 215.30.

Cash and wholesale gains are encouraging hog market bulls as well. Thursday afternoon reports confirmed talk of ongoing cash and pork market gains, which in turn powered fresh advances in Chicago prices. Big supply reductions are also playing a role in the rally. October hogs soared 1.47 cents to 104.12 cents/pound Thursday night, while December leapt 1.30 to 93.75.

Cotton futures are following through on Thursday decline. The cotton market is dealing with generally bearish fundamentals, which is also one reason they seemed to suffer a technical failure at moving average resistance this week. Indeed, last night's losses looked like a resumption of technically inspired selling. December cotton futures fell 0.76 cents to 64.69 cents/pound shortly after sunrise Friday, while March futures dropped 0.58 cents to 64.52.


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