GRAINS:
May corn closed down 4 1/4 cents and July corn was down 4 cents. May soybeans closed down 7 1/4 cents and July soybeans were down 6 3/4 cents. May KC wheat closed down 21 cents, May Chicago wheat was down 12 3/4 cents, May Minneapolis wheat was down 15 3/4 cents.
U.S. crop markets moved moderately lower Friday, likely due to position squaring ahead of the weekend, perhaps due to increased caution after bearish news last weekend led to a gap lower to begin trade Sunday evening and caught long holders off guard. This is especially true given the quickly evolving situation in the Middle East, with the conflict taking a crucial pivot this week as energy infrastructure has been targeted in several countries. Crude oil futures traded mixed through this week but are likely to remain supported as the conflict is ongoing. Equity markets continue to grind lower through the past month, with the Dow Jones trading to five-month lows this week on increased inflation and recessionary concerns.
LIVESTOCK:
Upon finding some minute stability in the futures complex, the live cattle contracts were comfortably trading slightly higher into Friday’s close. It also has helped that there’s been a thin movement of cash cattle noted in the North at prices steady with last week’s weighted average. Traders found peace of mind in the fact that prices didn’t again slip lower this past week. But it is unfortunate the cattle sold in the North are committed to the deferred delivery option, which could pressure the market in the weeks ahead as packers are building up inventory.
Upon seeing the live cattle complex charge into the last trading day of the week with a tick more bullishness, the feeder cattle contracts have followed suit. So long as no major shift is seen in the live cattle contracts ahead of Friday’s end, it’s likely the feeder cattle contracts will keep this momentum through the day’s end and maybe follow through on Monday.
Although pork cutout values were higher, traders couldn’t seem to give credence to the fundamental uptick in support and at this point it seems a little too late to add much value to really help the lean hog complex trade higher. The market is nearing support in the spot June contract, which hopefully the market won’t pressure as that could signal continued downward pressure.
