By: JATHAN STUEDLE
GRAINS:
July corn closed down 2 cents and December corn was down 1 1/2 cents. July soybeans closed down 1 1/4 cents and November soybeans were down 3/4 cents. July KC wheat closed down 9 1/2 cents, July Chicago wheat was down 12 3/4 cents, July Minneapolis wheat was down 11 3/4 cents.
For the week:
July corn closed down 4 3/4 cents and December corn was down 2 1/2 cents. July soybeans closed up 3 1/2 cents and November soybeans were up 13 1/2 cents. July KC wheat closed down 33 cents, July Chicago wheat was down 27 1/2 cents and July Minneapolis wheat was down 47 1/2 cents.
Wheat futures continued to face heavy trader selling as harvesting efforts look to pick up on winter crops around the Northern Hemisphere. Corn and soybeans were more resilient to close the week, but ultimately, the bearish influence from wheat as well as another day of softer energy prices kept a lid on price potential heading into the weekend. Equity markets are quietly higher on Friday, with the Dow Jones off fresh record highs Thursday. The U.S. Dollar Index has eased to close the week after surging to 13-month highs at midweek, a contributing factor in wheat price pressure.
LIVESTOCK:
With lower prices seen in boxed beef prices at midday, and no sales noted yet in the cash market, the live cattle contracts were trading lower into Friday's noon hour. Bids are on the table across most of the major feeding states. Again this week, it's a sit and wait scenario as feedlot managers want the market to trade higher and packers want the market to obviously trade lower. This week's trend will likely be determined by whether or not packers feel confident in the supply they have secured around them. If they have enough inventory for the weeks ahead, then prices will likely be softer, but if they're short-bought, prices could scale higher.
And although feeder cattle demand has been red hot this week, the feeder cattle contracts were trading lower into Friday's close. The market is up against resistance levels and needs the continued support of the fed cash market and live cattle contracts in order to trade any higher. Although the board is lower, feeder cattle sales will likely remain strong this afternoon as supplies are limited and the trend this week in the countryside has been higher.
Thursday's neutral Hogs and Pigs report seems to have a slightly positive effect on the lean hog complex as the contracts were trading higher into Friday's closing bell. The slight decrease in the total number of hogs and pigs is sitting well with traders as they hope that demand will increase and the decrease in supply could positively affect prices.