By: NATHAN STUEDLE
GRAINS:
March corn closed down 2 1/2 cents and May corn was down 3 1/4 cents. March soybeans closed down 8 cents and May soybeans were down 8 3/4 cents. March KC wheat closed down 2 1/4 cents, March Chicago wheat was down 3 1/2 cents, March Minneapolis wheat was down 3 1/4 cents.
Friday featured widespread selling pressure across ag and outside markets to close the week, with row crop futures posting moderate losses to close what was otherwise a mixed week for price action. Outside markets also saw profit taking with sharp moves lower for equity markets as well as a notable reversal in gold and silver. The U.S. dollar stabilized through the latter half of this week, with the recovery from four-year lows accelerated on Friday by money flow out of precious metals. Energy markets were also mixed on Friday after a firm week, adding another headwind to ag futures heading into the weekend.
LIVESTOCK:
The live cattle complex was truly a mixed bag heading into Friday's closing bell. Only the February live cattle contract traded higher, while the deferred contracts traded moderately lower as the market sits on pins and needles waiting for the industry's Cattle Inventory report to be released later this afternoon. It has been exciting to see some stronger trade develop in the fed cash cattle market, but unfortunately with traders knowing the big report is set to be released this afternoon, the strong developments in the cash market seem to be overlooked. Some light cash cattle trade developed in the South at $238 to $240, which is $3.00 to $5.00 higher than last week's weighted average. Some Northern dressed cattle trade developed at $375 to $378, which is $6.00 to $9.00 higher than last week's weighted average. Boxed beef prices were mixed: choice down $1.22 ($366.55) and select up $2.28 ($363.00) with a movement of 57 loads (38.15 loads of choice, 3.95 loads of select, 4.97 loads of trim and 9.61 loads of ground beef).
Between seeing the equity markets and live cattle contracts all fall lower, the feeder cattle contracts were following suit as most of the contracts traded $4.00 to $5.00 lower into Friday's close. There's a cloud of uncertainty that's seemed to overcome the entire marketplace, and currently seems to be ensuing the most havoc on the feeder cattle contracts.
While the cattle contracts sink back in anxiousness, the lean hog contracts at least traded higher in the market's deferred contracts, but the nearby contracts were following suit in a minor regression. It is helpful that midday pork cutout values were up over $2.00 higher -- showing strong continued consumer support.