By: NATHAN STUEDLE
GRAINS:
December corn closed down 1 cent and March corn was down 1/4 cent. January soybeans closed up 2 1/2 cents and March soybeans were up 2 1/4 cents. December KC wheat closed up 4 3/4 cents, December Chicago wheat was unchanged, December Minneapolis wheat was down 7 3/4 cents.
For the Week:
December corn closed down 4 3/4 cents and March corn was down 6 1/2 cents. January soybeans closed up 1/2 cents and March soybeans were down 1 3/4 cents. December KC wheat closed down 4 1/4 cents, December Chicago wheat was down 1/4 cents and December Minneapolis wheat was up 1/4 cents.
Markets took on a more reserved tone Friday ahead of the weekend, with futures trading both sides of even but gaining some semblance of footing following a turn lower across the middle part of the past week. For the most part, it was a retracement-themed week as prices finished on Friday very close to last week's close, with traders for now removing Monday's premium primarily from the soybean market. The support points which propped up prices for Friday will be interesting to monitor when trade resumes on Sunday evening and into next week's holiday-shortened week. Outside markets for Friday were mixed, with equities recovering near October lows. Meanwhile, energy markets headed lower again with January crude oil futures posting the lowest close in a month behind the idea that the proposed peace plan between Russia and Ukraine would ultimately result in a lifting of existing sanctions against the Russian oil industry.
LIVESTOCK:
After trading sharply lower as traders at first reacted poorly to the news that broke late Thursday afternoon that President Trump has lifted the tariff on Brazilian beef, as odd as it may sound, the live cattle complex got back to trading higher before closing softly lower into Friday's close. Besides the slightly higher boxed beef prices this morning, it's tough to pinpoint exactly what's giving traders enough support to look beyond Thursday's trade development. Nevertheless, for the sake of cattle producers, higher trade is higher trade, and that's always a win. No new cash cattle trade has developed. Do remember that later this afternoon the monthly Cattle on Feed report will be released. So far this week, Northern dressed deals have been marked at mostly $345, $6 lower than the prior week's weighted average basis Nebraska, while Southern live deals have been done at $222 to $224, $4 to $6 lower than the previous week's weighted averages.
The feeder cattle complex was taking more of a cautious approach to Friday's trade, as some of its deferred contracts traded higher, but the nearby contracts were still lower and the entire complex finished down. The feeder cattle complex remains on edge as everyone in the industry knows that eventually the border is going to reopen, which will ripple a negative effect throughout the futures complex, and the monthly Cattle on Feed report is set to be released.
The lean hog complex traded fully lower into Friday's closing bell, as the market, once again, comes up empty-handed in terms of enough fundamental support. And while yes, pork cutout values may have been higher this morning, traders need to see more than one day's worth of higher trade to keep the contracts trading higher.