By: NATHAN STUEDLE
GRAINS:
March corn closed up 4 1/2 cents and May corn was up 4 1/4 cents. March soybeans closed up 4 3/4 cents and May soybeans were up 4 1/2 cents. March KC wheat closed up 10 cents, March Chicago wheat was up 7 1/2 cents, March MIAX Minneapolis wheat was up 2 1/2 cents.
For the Week:
March corn closed down 21 cents and May corn was down 21 3/4 cents. March soybeans closed down 4 3/4 cents and May soybeans were down 5 3/4 cents. March KC wheat closed down 3 cents, March Chicago wheat was up 3/4 cents and March Minneapolis wheat was down 2 1/2 cents.
Markets continued recovery efforts on Friday to close the week with relatively minimized losses in wheat and soybean futures, while Monday's plunge still leaves the corn market with a significant weekly turn lower. Grain markets will be closed on Monday in observance of Martin Luther King Jr. Day. Wheat was the flagship of the group for Friday, moving double digits higher on increased weather risk for U.S. crops through the weekend. Outside markets were mixed to close the week, with a firm U.S. Dollar on higher Treasury yields, while energy markets recovered from Thursday's risk-off session.
LIVESTOCK:
It turned out to be a grim session for the live cattle complex as most of the contracts were trading $3.00 to $4.00 lower into midday and into the close on Friday. Pinpointing why the market is trading lower to such a notable degree is challenging because, up until this point this week, the market has been solely focused on its strong fundamental position. But part of the market's uncertainty could stem from the fact that Thursday afternoon, eight new cases of New World screwworm were detected in Mexico, or because there's yet to be any cash cattle traded, which causes traders to become anxious. Nevertheless, today's downturn is somewhat out of the blue, following a week of mostly bullish sentiment. Boxed beef prices are higher: choice up $1.14 ($361.91) and select up $0.59 ($360.30) with a movement of 53 loads (37.00 loads of choice, 2.54 loads of select, 4.14 loads of trim and 9.53 loads of ground beef).
If you think the downturn in the live cattle complex is steep, don't even take a glimpse at the feeder cattle contracts, as most of them are traded $7.00 to $8.00 lower for the bulk of the session. Unfortunately, given how steep the contracts have declined, it's likely that the market will continue short term downward momentum even though fed cash cattle prices are expected to trade higher.
While the cattle complex plummeted ahead of the weekend, the lean hog contracts were minding their own business, trading mildly higher into Friday's close. It is helpful to note that midday pork cutout values were a tick higher, which continues to lend traders additional fundamental support and help keep the contracts trading higher.