By: NATHAN STUEDLE
GRAINS:
September corn closed down 3 1/4 cents and December corn was down 4 1/4 cents. August soybeans closed down 8 1/4 cents and November soybeans were down 6 1/2 cents. September KC wheat closed down 10 1/2 cents, September Chicago wheat was down 9 1/2 cents, September Minneapolis wheat was down 18 cents.
For the week:
September corn closed down 24 1/4 cents and December corn was down 24 3/4 cents. August soybeans closed down 52 1/4 cents and November soybeans were down 42 cents. September KC wheat closed down 13 3/4 cents, September Chicago wheat was down 7 cents and September Minneapolis wheat was down 32 cents.
The market feature for Friday was the release of the July WASDE and Crop Production report from USDA. The report came in mostly in line with trader and analyst expectations with a few curveballs from the government. Overall, despite some of the estimates certainly having a bullish twist, market reaction was one of intense skepticism especially regarding the lower production estimates from USDA for the 2025 U.S. corn and soybean crops amid the rainy forecast for mid to late June. Moving forward, it will be a very interesting dynamic to watch the ongoing bearish weather trade go up against long-term support as row crops trade among and in a few instances beyond their 2025 lows into mid-summer.
LIVESTOCK:
What a day, what a day, what a day! The live cattle complex, upon seeing some light trade finally develop in the fed cash cattle market -- traders took one look at what the prices were of the cash market and opted to shoot the live cattle contracts mostly $2.00 to $3.00 higher. A light trade developed this morning in the North at $380, which is $10.00 higher than last week's weighted average in Nebraska. Some Southern live cattle have traded at $228 to $230, which is $4.00 to $6.00 higher than last week's weighted average. From a sheerly fundamental aspect, the power in this week's fed cash cattle market far outweighs the bearish note of the seasonal decline in boxed beef prices, which is why traders are willing to propel the contracts higher.
It was another exhilarating day for the feeder cattle complex as the market traded higher thanks to the continued support of strong market fundamentals, and the sheer willingness of traders to remain engaged in the marketplace. All throughout the week, the feeder cattle complex was well supported. Buyers have aggressively been procuring calves in auctions throughout the countryside, but upon seeing the fed cash cattle market trade higher -- the feeder cattle complex grabbed another bullish factor and opted to continue to trade higher.
The lean hog complex traded lower into Friday's close as pork cutout values were slightly lower and there simply isn't enough trader support to push the contracts higher at this point. It's likely that the market continues to trade in this sluggish manner into early next week.
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