GRAINS:
May corn closed down 11 1/2 cents and July corn was down 11 cents. May soybeans closed down 11 1/2 cents and July soybeans were down 12 cents. May KC wheat closed down 12 1/4 cents, May Chicago wheat was down 6 3/4 cents, May Minneapolis wheat was down 6 cents.
For the week:
May corn closed down 37 3/4 cents and May corn was down 35 1/2 cents. May soybeans closed down 28 cents and March soybeans were down 31 1/2 cents. May KC wheat closed down 51 cents, May Chicago wheat was down 53 cents and May Minneapolis wheat was down 46 cents.
It was a red day across agricultural futures to finish what has frankly been a week to forget as corn, soybean, and wheat prices all slumped to their largest weekly losses in months in their May contracts. The market to this point can simply not shake this week's onslaught of bearish news, which has in turn sparked massive liquidation among noncommercial ag traders. In outside markets, Friday morning's Personal Consumption Expenditure (PCE) data indeed showed a cooler level of inflation in the economy as compared to earlier metrics in February such as the Consumer Price Index. However, total consumer spending slumped below expectations. Time will tell if the drop off is simply the result of strong spending through the holiday season to end 2024 or if it is indicative of growing consumer concerns about the U.S. economy. Stock indices seemed to reflect this uncertainty on Friday, trading both sides of unchanged throughout most of the session.
LIVESTOCK:
Unfortunately, the live cattle complex took a lower approach to Friday's market as the cash cattle market hasn't lent the support it was hoped to. There's some light trade that has been reported in the South at $197, which is $2.00 lower than last week's weighted average. Although no new trade has developed in the North, on Thursday, Northern dressed cattle sold for $313, which is $2.00 lower than last week's weighted average as well.
Although the live cattle contracts have fully elected to trade lower, the feeder cattle complex was split with the market's nearby contracts able to remain on the plus side most of the session while the deferred months traded lower, only to see the support on the nearby contracts give way to the pressure. Between the moisture the countryside received just last week combined with the continued support of excellent feeder cattle demand in the countryside, traders remain willing to continue to support the nearby contracts, while the rest of the market slid lower ahead of the weekend.
The lean hog market's uncertainty crept into Friday's market following Thursday's sharp decline. But with morning pork cutout values not lending any support with a carcass decrease of $1.94 and tariff tribulation expected to hit next week, the market continued to hold its breath waiting for next week to come.
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