By: NATHAN STUEDLE
GRAINS:
December corn closed up 10 1/4 cents and March corn was up 10 1/4 cents. November soybeans closed up 6 1/2 cents and January soybeans were up 5 3/4 cents. December KC wheat closed up 4 cents, December Chicago wheat was up 5 1/4 cents, December Minneapolis wheat was up 2 3/4 cents.
For the Week:
December corn closed up 8 3/4 cents and March corn was up 9 cents. November soybeans closed down 4 cents and January soybeans were down 4 1/2 cents. December KC wheat closed down 5 1/4 cents, December Chicago wheat was up 13 1/4 cents and December Minneapolis wheat was down 7 3/4 cents.
Friday's trade featured month-end position-squaring as short-side traders raced to book profits while also avoiding the beginning of the delivery period for September futures contracts next week. The firm corn market offered support to soybean and wheat futures, both recovering from a sluggish start Friday to finish higher heading into the long weekend. In outside markets, equity markets relaxed into month end following three straight sessions higher. Energy markets were lower in a continuation of mixed trade overall through this week. Treasury yields were mostly lower as well as Personal Consumption Expenditure data on Friday morning showed that consumers in July remained avid spenders despite generally higher prices. The key inflation metric fell within expectations and the Federal Reserve is likely to have all the supporting features in place to cut its target rate by a quarter point in next month's meeting.
LIVESTOCK:
The live cattle complex got back to trading higher as traders are again finding support in the market's slightly higher cash cattle trade. It's unlikely that traders will challenge the market's resistance at $240 unless something wild and dramatic develops in the fed cash cattle market. But at this point, it's looking like some more trade could develop, but prices may hold steady with the week's trend. So far this week Southern live cattle have traded at mostly $242, which is $2.00 higher than last week's weighted average and Northern dressed cattle have traded at mostly $385, which is $1.00 lower than last week's weighted average.
Following Thursday's lower close, the feeder cattle complex also got back to trading higher as traders are no longer up against immediate resistance levels. Demand in the countryside remains incredibly strong, so today's recovery in the futures sector is a move based upon continued support of the market's fundamentals and because the contracts are no longer teetering at resistance levels.
If the lean hog complex rounded out the day higher, and an incredible week for the market, as the contracts closed higher every day this week. And although pork cutout values were higher this morning, demand has been softer than usual, so this week's momentum in the marketplace has largely been driven by traders. The big change in the carcass price came because of the $14.23 jump in the belly and because of the $11.60 jump in the picnic.