Grains are quietly mixed, with cattle higher and hogs retreating.
Randy Martinson, Martinson Ag, says grains are seeing a quiet session on Friday with thin post-holiday trade. However, at least wheat is failing to extend the big gains seen on Wednesday.
He says wheat is taking a break from nearly three month highs, despite continued concerns about the war between Iran and Israel heating up and weather.
Martinson says, “It appears that Iran is not willing to surrender so this war will continue. This might result in Egypt (largest wheat importer) to start covering their wheat needs earlier than expected due to logistic concerns.”
Toss in the continued fighting in the Black Sea region and you have the largest wheat producing region and the largest wheat consumption region in some sort of military action.
Portions of Western North Dakota received hail over night which wiped out thousands of acres of hard red spring wheat. Southern Kansas has also had excessive wind and rain, with some areas seeing upwards of 12 inches. That will lower the quality of about third of the hard red winter wheat crop in that area.
There have also been global production concerns in areas of Russia and the Canadian Prairies.
Exports were also supportive Friday morning with corn at 35.6 million bu., soybeans at 19.8 million bu. and wheat at 15.7 million bu. There was also a flash sale of 4.9 million bu. of corn to unknown destinations for the 2024-25 marketing year.
The July corn continues to struggle as Friday is option expiration and there are farmers that need to roll or price basis fixed contracts he says.
Soybeans are right up into key resistance after having priced in the positive biofuels news. He says the May high is $10.82 and the July contract has been trying to test that. A close above it could project to over $11.
Cattle futures are extending gains Friday despite lower cash trade in the North by $3 to $5. However, the futures stand at a big discount to the cash market and there is some positioning ahead of what is expected to be a bullish Cattle on Feed report.
Hogs are pulling back after hitting new contract highs again on Wednesday, mostly likely seeing some profit taking end of week.
