Grains back lower as wheat drags down corn and soybeans and funds are back selling. Cattle try to bounce, with more new lows in hogs.
Randy Martinson, Martinson Ag, says wheat is seeing pressure for an 8th day as funds are selling with rain in the forecast for Russia for the weekend.
Turkey has also said its banning imports of wheat and that sent Matif wheat futures lower which is also weighing on U.S. markets.
Martinson says the wheat market is also seeing harvest pressure with advancing combines and better than expected yields so far and the fear is that may show up in next week’s WASDE Report.
Funds are also back in sell mode on every rally in all of the grain markets.
Soybeans and products are lower today despite a flash sale of 3.8 million bushels of soybeans to China. That business was already rumored on Thursday and that rallied the market in addition to news of a proposed export tax in Brazil which stopped farmer selling and talk of China export business.
The market has already traded that news plus soybeans hit some chart resistance yesterday at $12.00 on the July so futures are retracing under that level.
Corn also traded the Brazil news, rumors of China corn purchases and strong weekly exports on Thursday and is retracing with wheat and soybeans Friday.
The market seems comfortable that the last 9% of the corn crop will get planted but Martinson says he expects an increase in prevent plant acres in the Northern Plains with North Dakota as high as 15% of the corn acres not getting seeded.
Extended forecasts are hot and dry for the last half of June into July, but the market doesn’t seem to care.
Cattle are trying to bounce awaiting cash news after another day of trading lower on bird flu news. There was some light cash in the South at $185 but not enough for a trend.
Meanwhile, lean hogs are mostly lower again in the deferred contracts which are posting new near-term lows again and looking for support.
