Corn futures closed 15 to 17 cents higher on Friday. No new is not always good news. There is currently not much fresh news concerning the corn market, but the consensus remains pretty disappointing for this year’s corn crop. U.S. crop forecaster Lanworth estimates crop yields plummeting to 122 bushels per acre while Informa Economics estimates yields at 134.0 bushels per acre. The trade is now looking ahead to Monday’s crop progress report, with expectations for more declines to condition ratings. For more information of the state of the 2012/13 corn and soybean crop, follow Bill Nelson and Marty Foreman on the 2012 Crop Tour across the Midwest at http://www.doane.com/crop-tour/ or DoageAg on twitter.
Soybean futures closed 28 to 33 cents higher on Friday. This week concludes an erratic week of trading for soybean futures. There were sharp losses as well as sharp gains. But all in all the fundamentals of the market prevailed and pushed prices to close higher on today. Global supply is expected to be quite tight if the US soybean crop continues to deteriorate due to current drought conditions. Currently, U.S. crop forecaster Lanworth is pegging soybean yields at a disappointing 35.7 bushels per acre. Informa Economics also foresees declines to soybean yields, with estimates at 38.5 bushels per acre. For more information of the state of the 2012/13 corn and soybean crop, follow Bill Nelson and Marty Foreman on the 2012 Crop Tour across the Midwest at http://www.doane.com/crop-tour/ or DoageAg on twitter.
Wheat futures closed 4 to 14 cents higher on Friday. Wheat futures pulled back from midday highs but sustained upward momentum as the dollar index declined and outside markets rallied. Wheat futures were also supported by increased strength in the corn market. Long term outlook for the wheat market is becoming more serious as Russian wheat production estimates continue to fall. Russian officials cut 2012 outlook to 77-80 million tonnes, down from 83-86 million tonnes due to severe drought conditions.
Cattle futures closed sharply higher on Friday. Cattle prices ended the week on a high note, posting triple digit gains despite lower boxed beef prices. Market gains can be tied to renewed buying interests and traders foresee possible herd contraction due to rising costs of production brought on by higher corn prices. Midday boxed beef prices were down more than $1 for both choice and select cuts but had minimal effect on today’s trade; however these lower prices more than likely will weigh on market prices at the start of next week.
Lean hog futures closed mixed but mostly higher on Friday. Initially, the market saw support from higher cash prices and follow through buying from Thursday’s price rally. But, what carried prices through today’s trading session were moderate gains in the outside markets and rising corn prices. Higher wholesale pork values and renewed demand also supported the market today.