Pressure remained on the grains Friday as the outlook for overall US crop progress turns positive. Higher old crop corn ending stocks in the recent report exceeded expectations, likely adding resistance to corn futures. U.S. Midwest 6-10 precipitation is calling for above normal rainfall while the 6-10 day for temps calls for mostly normal, according the National Weather Service. Good rains in additional to normal heat could bode well for corn emergence. The U.S. Dollar Index lost .24% to 94.86 and the Dow fell 149 points. July corn lowered 3.25 cents to $3.5325/bushel at the close Friday and December dropped 4.25 cents to $3.70.
Trade in the soy complex seemed to plateau Friday after most of the action had played out in response to the supply/demand glimpse the USDA gave us on Wednesday. There seems to be consensus that planted soybean acres may not be significantly affected by the rain as much as feared, despite NOAA’s 6-10 day outlook for above normal precipitation. A Reuters NOPA survey projected that soybean crush will reach highest level for the month of May, stating an estimate of 147.299 million bushels, above the record set in May 2008 of 144.002 million. The trade now awaits the June 30 planted acres report in order to clarify supply. July soybean futures were unchd at $9.39/bushel at the end of session Friday, while July soyoil fell 0.15 cents to 33.14 cents/pound, and July meal gained $4.0 to $317.4/ton.
Wheat futures were mixed after a sharp decline the past few days. The downturn came after the USDA forecasted winter wheat production a bit higher that the trade was expecting. Also, they projected the 2015-16 ending stocks to be 814 million bushels, 21 million bushels above estimates. Even so, the markets can have a tendency to overshoot a directional trade and often they bounce back, accordingly, to some equilibrium. July CBOT wheat futures lowered 0.5 cents to $5.0375/bushel at the close Friday, while July KC wheat rose 3 cents to $5.2625/bushel, and July MWE lost 1.5 cents to $5.625.
Cattle futures lowered again Friday, as they did Thursday, apparently correcting and consolidating after significant rises in recent weeks. Wholesale beef prices have strengthened in recent weeks in anticipation of peak beef demand. The pipeline from the feedlot-packer-retailer seems to have completed coverage for the Independence Day holiday and could be adjusting production accordingly . August cattle futures dropped 1.9 cents to 151.02 cents/pound at the close Friday, while December futures lowered 1.65 cents to 154.20. Meanwhile, August feeder cattle futures slumped 2.35 cents to 223.90 cents/pound, and November feeders declined 2.85 cents to 217.52.
Lean hog futures fell again Friday as packers and retailers fail to be impressed by pork demand this summer. The USDA reported wholesale price weakness yesterday perhaps as wholesalers complete coverage for the impending Independence Day holiday. The market will continue to watch and adjust as pork supplies reach their seasonal lows around the same time that pork demand for the year reaches its highest level. August hog futures fell 1.62 cents to 77.90 cents/pound at the close Friday, while December slumped 1.67 to 64.60.