Corn futures dipped Friday. Although domestic data on Thursday’s Export Sales and WASDE reports seemed supportive, traders reportedly focused upon Thursday’s USDA’s increase in its global carryout forecast during Friday’s session. The soybean market’s inability to rise on good export news, as well as concurrent U.S. dollar strength, may also have weighed on yellow grain prices. May corn futures sank 1.0 cent to $3.77/bushel at Friday’s CBOT settlement, while December lost 1.0 to $4.025.
The soy complex came back from early lows. Soybean and product futures traded narrowly mixed Thursday night, then suffered modest declines this morning. Given the bullish export news reported after the morning reopening, that was not expected. The ongoing South American harvest, on top of the bearish price effects of the U.S. dollar surge, probably weighed on prices. Conversely, the late-session comeback, with oil following crude oil higher, was rather impressive; that suggested a strong start next week. May soybean futures ended the week having declined 2.0 cents to $9.515/bushel Friday, while May soyoil bounced 0.25 cents to 31.09 cents/pound, and May meal sagged just $2.9 to $309.2/ton.
The wheat markets posted a late-session resurgence. Despite the general bearishness of the global wheat situation and the elevated nature of U.S. grain prices (circumstances being exacerbated by fresh U.S. dollar gains), wheat futures posted sizeable gains Friday. Wire service reports highlighted persistent southern Plains dryness and reports of freezing Thursday night temperatures for the rally. May CBOT wheat climbed 7.75 cents to $5.265/bushel around midsession Friday, while May KC wheat lifted 7.25 cents to $5.5875/bushel, and May MWE wheat advanced 7.0 to $5.81.
Bearish cash expectations sent cattle futures tumbling Friday. Despite recent spot market gains, the cattle/beef industry clearly expects a decisive seasonal downturn in the near future. Thus, talk of a potential cash market drop later in the day sparked strong CME selling. On the other hand, big discounts already built into CME futures could limit losses. June cattle futures plunged 2.77 cents to 148.80 cents/pound in late Friday action, while August cattle dove 2.12 to 146.55 cents/pound. Meanwhile, May feeder cattle futures crashed 3.97 cents to 209.72 cents/pound, and August feeders plummeted 3.57 to 211.45.
Hog futures challenged technical resistance. In contrast to their counterparts in the cattle market, swine traders expect a sizeable seasonal rally through the second quarter. Thus, futures responded well to talk of cash strength this morning. Conversely, wholesale slippage likely limited gains, as did technical resistance around intermediate-term moving averages. June hog futures rallied 1.35 cents to 78.15 cents/pound as Friday’s pit session ended, while December gained 0.65 to 68.25.