Corn futures were lower Friday despite strong export sales at 618,600 tonnes, compared to the estimate of 450,000-650,000 tonnes. Low prices have led to cash market strength as farmers have been reluctant to sell and end-users are eager to buy; a recipe for a strong basis, helping futures against the backdrop of US 15/16 corn ending stocks being revised higher 200 million bushels on Tuesday. The Dow was down 150 points at the CBOT close. 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 3.75 cent to $3.5825/bushel Friday, while March fell 4 cents to $3.655.
Soybean futures fell Friday, erasing gains from the previous two sessions. Export sales came in at 1.297 million tonnes, exceeding the 600,000-1,000,000 tonne estimate. 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. 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 7.75 cents lower to $8.5525/bushel Friday, while December soyoil lost 0.37 cents to 27.04 cents/pound and December meal dropped $2.20 to $288.8.
Wheat futures slipped after starting Friday higher, negating gains from the previous two sessions as futures attempted to recover from the 12 cent post-WASDE fall. Export sales were 227,700 tonnes, midrange from the expected 150,000-350,000 tonnes. While world weather worries, especially dryness in Ukraine, may be lending 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. December CBOT wheat futures lost 2.25 cents to $4.9575/bushel Friday, while Dec KC wheat climbed 1.5 cents to $4.655, and December MWE lifted 0.5 cents to $5.0575.
Live cattle futures moved lower again Friday after rallying the last two sessions. Boxed beef cutouts that were mixed with choice down 2.43 to 209.37 and select up 0.46 to 200.94. Cattle slaughter so far this week, including Sat estimate, was at 556,000 head, compared to 563,000 head last week and 564,000 head this time last year. Lower equities, the seasonal demand shift, and technical selling all weight on live cattle. December live cattle lost 2.6 cents to 130.67 cents/pound Friday, while February futures lost 2.62 cents to 132.65. January feeder cattle fell 2.85 cents to 164.55 and March feeders plunged 3.17 cents to 160.92.
Lean hog futures dove again Friday, after correcting higher the past two days on the heels of a 13 cent descent from the near-term peak of 67.85 three-weeks ago. Country hogs were flat, up 0.03 to 51.31 cents/pound while the lean hog index fell another 1.6% to 58.98. Dec hogs still sit 5 cents below the 20-day moving average. Hog slaughter so far this week was at 2.288 million head, compared to 2.360 million head last week and 2.222 million head this time last year. December hog futures lost 1.30 cents to 54.80 cents/pound Thursday and April hogs slid 1.35 cents to 62.22.