Corn futures were lower early Friday morning ahead of the weekly export sales report due out at 7:30 a.m. CST. Low prices have led to cash market strength as farmers are reluctant to sell and end-users are eager to buy; a recipe for a strong basis, acting as support to futures, against the backdrop of US 15/16 corn ending stocks being revised higher 200 million bushels on Tuesday. The DJIA lost 254 points Thursday, down 1.4%, with Asian stocks following suit at their close Friday; Shanghai composite down 1.4% and Shenzhen Composite down 2.4%. Argentina corn planting is 36% complete. Ethanol production was up 1.3% over last week and 3.8% over last year, to 982K bpd. The dollar index was neutral, up by .01%. December corn futures lost 1 cent to $3.61/bushel before dawn Friday, while March fell 1.25 cents to $3.6825.
Soybean futures were lower before sunrise Friday morning, erasing some gains from the previous two sessions. Given the supply benchmark set by the USDA Tuesday, solidifying the largest US bean crop ever, the trade will focus on the demand side of the equation, specifically exports and domestic feed use, as well as S. America. The trade estimate for export sales is 600,000-1,000,000 tonnes. NOPA will release its Oct crush report Monday at 11:00 a.m. CST. Argentina bean planting is 20% complete compared to 8-9% last week. January soybeans moved 4 cents lower to $8.59/bushel early Friday morning, while December soyoil lost 0.16 cents to 27.28 cents/pound and December meal dropped $0.6 to $290.7.
Wheat futures edged higher overnight , higher for the third consecutive day after nearby CBOT wheat lost 12 cents on bearish WASDE data. While world weather worries, especially dryness in Ukraine, may be adding support, higher than expected US wheat ending stocks (up by 50 million bushels) and dismal exports have offset upside momentum. World supply estimates are also rising as FranceAgrimer announced revising French soft wheat stocks to 5.2 million tonnes from 4.8 million. Trades estimates for this morning’s export sales data are 150,000-350,000 tonnes. December CBOT wheat futures gained 0.5 cents to $4.985/bushel early morning Friday, while Dec KC wheat was climbed 0.5 cents to $4.64, and December MWE lifted 0.5 cents to $5.0575.
Live cattle futures moved higher for the second day after falling the previous 8 sessions. Futures rallied despite boxed beef cutouts that were lower with choice down 2.04 to 212.77 and select down 2.94 to 201.25. Cattle slaughter so far this week was at 433,000 head, compared to 443,000 head last week and 435,000 head this time last year. Technical selling and worries about wholesale beef demand has kept pressure on futures, as will lower equities, which were down again Thursday. December live cattle gained 1.8 cents to 133.15 cents/pound Thursday, while February futures advanced 1.77 cents to 135.32. January feeder cattle climbed 1.42 cents to 166.90 and March feeders gained 0.10 cents to 164.05.
Lean hogs climbed for the second day after falling the previous 14 sessions, with Dec hogs still perched 4 cents below the 20-day moving average. The rise was in concert with movement in the cash market with country hogs 0.41 higher to 51.64 cents/pound. Also, the lean hog index fell another 2.2% to 59.83, narrowing the cash-futures spread to merely 3.5 cents. Dec hogs still sit nearly 5 cents below the 20-day moving average. Hog slaughter so far this week was at 1.696 million head, compared to 1.734 million head last week and 1.672 million head this time last year. December hog futures gained 0.15 cents to 56.32 cents/pound Thursday and April hogs gained 0.87 cents to 63.57.