The grain markets settled lower overnight. It appears that consensus could forming that while too much rain could threaten some planting, a healthy WASDE supply picture is a still intact thereby putting a ceiling on the risk. The Dow was up 200 points yesterday and the dollar is up .37% this morning. July corn futures fell 1.75 cents to $3.5625/bushel at sunrise Friday morning, and December dropped 1.5 cents to $3.7175.
Soybean futures cooled down in the nightly session after ratcheting up the last few day over weather. Tropical storm Bill is said to continue affecting the lower corn belt throughout the weekend, but if feels as if the trade may already be anticipating its passing and the clear passage to final planting ahead. Better than expected new crop export sales suggest firm demand yet boosted South American production estimates also suggest supply could also beat expectations. July soybean futures slid 3.5 cents to $9.7425/bushel early Friday morning , while July soyoil gained .27 cents to 32.52 cents/pound, and July meal gained $1.4 to $325.2/ton.
Wheat futures are also down Friday morning. Russian expects their wheat yield to reach up to 100 million tonnes which could imply exports of 25-27 million tonnes. U.S. Weekly export expectations for wheat were 200,000-400,000 tonnes and were reported to be 315,691 tonnes for the 15/16 crop year. July CBOT wheat futures slipped 2 cents to $4.86/bushel early Friday morning, while July KC wheat lifted 1 cents to $4.9925/bushel, and July MWE dropped .5 cents to $5.3925.
The livestock markets stumbled lower Thursday. Selling seemed to be based on long liquidation and beef demand concerns. Beef boxed cutout values gained again today topping 250.00 for choice, yet cattle futures seemed little impressed and sustained steep losses as did feeder cattle. A slowdown in packer production during the incumbent seasonal shift might explain this divergent trade. August cattle futures fell 1 cent to 149.65 cents/pound at the close Thursday, while December futures lost 0.62 cents to 153.37. Meanwhile, August feeder cattle futures fell 2.50 cents to 222.22 cents/pound, and November feeders lost 1.55 cents to 216.92.
The hog market fell Thursday. Pork futures continue consolidating in response to being way oversold. The trade continues to struggle with oversupply while at the same time facing the seasonal shift to lower demand after the 4th of July. The CME lean hog index lost .45 cents to 80.57 cents/pound. August hog futures slid 0.35 cents to 76.05 cents/pound at the close Thursday, while December rallied 1.20 to 64.00.
Cotton futures edged lower Friday morning after Thursday’s supportive trade. In global news, China, the largest cotton producer in the world, is expected to plant 20% fewer cotton acres this year than last Further, last year they planted 12.5% few acres than the previous year. The challenge for cotton is the world ending stocks that the USDA estimates at 106 million bales (480 lb) and a stocks-use ratio of 92%. This glut has plagued prices and could explain China’s shift in plantings, particularly since China eliminated the floor-price program last year. Domestically, the focus continues to be on Texas plantings, the largest cotton producing state in the US. July cotton futures lost .38 cents to 63.70 cents/pound early Friday AM, while December fell .34 to 64.38.