GRAINS:
Grain prices were very strong immediately following the USDA WASDE release at 11 a.m. CST Friday, before fading off highs throughout the balance of the session. The report pretty much went as analysts expected in terms of direction of revisions, but where the trade missed the degree of these changes. Soybeans, in particular, were a bullish surprise with larger than expected cuts to U.S. production. Corn also saw cuts to a lesser degree. What I found surprising in the report was USDA leaving corn exports for the year unchanged and decreasing soybean exports slightly. The overall price action post release shows that while Friday’s adjustments do provide a more optimistic forecast for row crops, the balance sheet still shows a surplus of supply compared to recent years, especially without much lifting from demand this time around. December corn closed up 3 1/2 cents and March corn was up 3 3/4 cents. January soybeans closed up 4 cents and March soybeans were up 6 cents. December KC wheat closed down 4 3/4 cents, December Chicago wheat was up 1 cent and December Minneapolis wheat was down 4 3/4 cents.
For the week:
December corn closed up 16 1/2 cents and March corn was up 15 cents. January soybeans closed up 36 1/2 cents and March soybeans were up 35 1/4 cents. December KC wheat closed down 2 1/2 cents, December Chicago wheat was up 4 1/2 cents and December Minneapolis wheat was down 2 cents.
LIVESTOCK:
The live cattle complex traded lower as the market endures some pressure as traders are likely reacting to the fact that some of the funds are moving their positions as the Goldman roll gets underway. Friday’s lower break thankfully remains above the market’s 100-day moving average, but all in all it isn’t that surprising the market is trading lower given that cash prices are developing $2.00 to $3.00 lower than last week’s weighted average and boxed beef prices are trending lower too. With the live cattle complex trading lower, it comes as no surprise that the feeder cattle market is also trending lower. The lean hog complex traded mixed into Friday’s close as the market endured some pressure on nearby contracts, but the deferred contracts traded slightly higher.
