Corn is struggling against technical resistance. After rallying strongly in response to big export numbers on Thursday’s weekly report, corn futures set back overnight The drop didn’t appear news-driven, which probably means traders were squaring positions before the weekend. The nearby contracts also appear to be struggling to decisively penetrate resistance associated with their short-term moving averages. March corn futures drooped 3.5 cents to $3.8625/bushel Thursday night, while July sagged 3.25 to $4.015.
The soy complex moved mostly lower last night. Little soybean news emerged overnight, which likely caused traders to look at ongoing factors in the markets. The fact that good South American could enable Brazil and Argentina to produce record crops in early 2015 seemed to weighing on beans and meal. The losses are likely being mitigated by strong U.S. exports. Soyoil appears caught between lower crude and higher palm oil quotes this morning. January soybean futures sank 3.0 cents to $10.075/bushel in early Friday trading, while January soyoil inched up 0.02 cents to 31.72 cents/pound, and January meal skidded $1.5 to $356.3/ton.
Wheat futures are mixed in early Friday action. The fact that last week’s wheat export sales weren’t as bad as many feared apparently encouraged U.S. traders Thursday. However, the bearishness of the global situation, as well as renewed talk of Russian availability reportedly dominated market talk last night. Price movements proved generally mixed. March CBOT wheat fell 5.25 cents at $5.845/bushel early Friday morning, while March KC wheat dipped 2.0 cents to $6.335/bushel and March MWE wheat slumped 0.5 cents to $6.18.
Cattle futures couldn’t sustain midsession Thursday firmness. Beef cancellations on the weekly Export Sales report seemingly undercut the expiring December cattle contracts yesterday morning, but prices firmed around midsession. Trader hopes for wholesale strength seemingly supported February and April futures, then sold the market lower when the midday report disappointed. Big afternoon beef losses suggest a weak opening today as well. February live cattle ended Thursday having slipped 0.15 cents to 166.97 cents/pound, while April slid 0.402 to 166.45. January feeder cattle futures vaulted 1.12 cents to 235.95 cents/pound and March feeders edged up 0.15 to 232.05.
CME hogs ended mixed Thursday. Chicago hog traders seemed uncertain about short-term prospects in early Thursday trading, with the various contracts edging in both directions for no obvious reason. The CME index is expected to inch upward today, but midday cash and wholesale quotes weren’t encouraging. Although cash quotes proved weak later in the day, sizeable pork gains may presage a firm opening. February hog futures sank 0.25 cents to 86.62 cents/pound at their Thursday settlement, while June hogs rose 0.15 cents to 94.50.
Wednesday’s attaché report on Chinese cotton is still supporting prices. Although the latest USDA attaché report concerning China’s cotton situation stated 2014 production unchanged, the release reportedly cut the estimate for 2015 Chinese carryout by 6.6%. That news apparently powered Thursday’s sizeable ICE advance. It was probably the main factor behind the follow-through gains posted last night. March cotton futures climbed 0.29 cents to 60.71 cents/pound when New York traded halted Thursday, while the July contract gained 0.26 to 62.28.