Grains all lower Friday morning and livestock are also seeing weakness after a mixed start.
Kent Beadle with Paradigm Futures says row crops are pricing in beneficial rains over the last 72 hours in key areas of the the Corn Belt.
This is adding bearish anticipation of record yields on the Pro Farmer Crop Tour next week.
Soybeans have had spillover pressure from soybean oil dropping below 40 cents as crude prices have fallen back this week.
However, the bigger reaction came from California’s Low Carbon Fuel Standard proposal which caps use of soybean oil and canola oil as a feedstock at 20%. It is just a proposal and not law but it is still had a negative reaction in the market.
Plus, the corn market has seen an increase in farmer selling of old crop supplies head of first notice day and harvest, which has pushed September into new contract lows.
Wheat has been capped by lower corn and soybeans prices with December Hard Red Winter wheat pushing into new contract lows.
Beadle says the market was also disappointed with the lack of export business generated out of the 3.6 million metric ton Egypt tender.
Both live and feeder cattle futures are under pressure on continued fund long liquidation, despite several strong fundamentals including lower corn prices and higher boxed beef values.
Lean hog futures are following cattle lower, despite strong cash and cutouts.
