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Corn: Corn futures extended gains in response to lower-than-expected corn planting intentions. The market settled 6 3/4 to 7 1/4 cents higher. Thanks to today’s gains, the market posted decent gains for the week, with the front-month up 8 cents and the December contract up 8 3/4 cents. The corn market could see some more corrective trade next week, as USDA reported corn planting intentions nearly 1 million acres lighter than the market anticipated at 89.996 million acres. Traders will also monitor heavy rains in the forecast for Argentina over the weekend that poses the threat of flooding and crop damage.
Soybeans: Soybean futures extended losses following USDA’s reports to end 15 3/4 to 17 cents lower in old-crop contracts and mostly 8 to 11 cents lower in new-crop contracts. For the week, May soybean futures dropped 29 3/4 cents, while the November contract was 23 cents lower. While much bigger soybean acreage was anticipated, March 1 soybean stocks signal the market has more old-crop supplies to deal with than previously thought. That’s likely to keep bears in control.
Wheat: Winter wheat futures strengthened in the aftermath of USDA’s reports, while spring wheat futures softened. SRW and HRW wheat posted gains of roughly 3 to 5 cents for the day, while HRS wheat ended 5 1/2 to 9 1/4 cents lower. May SRW wheat futures settled 1 3/4 cent higher for the week, with other contracts also posting little net change for the week. USDA’s official crop condition ratings will start back up next week, but state statistician’s updates have kept traders informed on crop conditions over the winter.
Cotton: Surprisingly, cotton futures strengthened in response to USDA’s reports, posting bullish reversals and settling 31 to 110 points higher for the day, with nearbys leading gains. The market ended just slightly lower for the week. The cotton market’s reaction to a larger-than-expected cotton planting intentions number signals traders had feared an even bigger hike to acreage given the cotton market’s price strength relative to other commodities. The market has been trending steady to slightly lower and more such action is likely next week.
Cattle: Live cattle futures favored a firmer tone in mixed trade today, but posted losses on the week. June live cattle posted a weekly loss of $1.97 1/2. May feeder cattle futures posted a weekly loss of $1.10. Bears clearly have momentum on their side heading into next week, though pressure should be limited by the discount nearby live cattle hold to the cash market. But traders are comfortable with the discount structure as they believe the cash market has topped. Sharp weakness on wholesale beef prices this week adds to traders’ bearish ideas.
Hogs: April lean hog futures finished a nickel higher today, while the May through August contract ended 30 to 65 cents lower. For the week, June hogs dropped $1.90. Pressure on the cash hog market is likely to persist next week as market-ready supplies are plentiful and packers are having no problems keeping kill lines full, even with lower cash bids. That will also likely keep pressure on hog futures, though selling in the lead April contract may be limited by its $3-plus discount to the cash index.
