By: NATHAN STUEDLE
GRAINS:
September corn closed up 7 1/2 cents and December corn was up 6 cents. August soybeans closed up 5 1/2 cents and November soybeans were up 8 1/4 cents. September KC wheat closed unchanged, 0 cents, September Chicago wheat was up 4 cents, September Minneapolis wheat was up 2 1/2 cents.
For the week:
September corn closed down 11 1/4 cents and December corn was down 14 1/4 cents. August soybeans closed down 40 1/4 cents and November soybeans were down 36 cents. September KC wheat closed down 47 1/4 cents, September Chicago wheat was down 43 cents and September Minneapolis wheat was down 30 3/4 cent
It was a mostly positive session across agricultural futures to close the week as traders seem satisfied for the time being with the risk removed from the market over the past week and took a pause Friday to cash in some short positions ahead of the weekend and also ahead of Monday morning's USDA reports that hold the chance for increased volatility. Outside markets were mixed, as stock indices rose and the S&P 500 set a new record high following the announcement from the Trump administration and subsequent confirmation from Chinese officials that the two countries had signed an agreement earlier this week to loosen trade restrictions with rare earths reportedly the focal point. Meanwhile, energy markets continue a quiet trade since the ceasefire between Israel and Iran was announced earlier this week.
LIVESTOCK:
Live cattle futures have followed the feeder cattle market higher, posting the first active gain in the complex in over a week. August futures lead the shift higher, as traders continue to focus on moderate to strong support still holding in wholesale beef prices. Triple-digit gains are seen through the entire complex as traders have found renewed support at $209 per cwt in August futures contracts. This underlying support through the entire market at the end of the week could help to solidify follow-through buying early next week. Although volume next week is still questionable, with the end of the month, and quarter seen early in the week, and markets closed at the end of the week due to the Independence Day holiday break.
Feeder cattle futures have rallied higher Friday, with active triple-digit gains seen in all contracts. August futures are leading the complex higher, with prices moving well above $305 per cwt during morning trade. The ability to string together three positive market gains earlier this week following strong pressure the previous week has helped to create stability through the feeder cattle market and allowed traders to use previous price levels as support levels. Although this is still well below recent highs, the feeder cattle complex could potentially spend the next few weeks hovering within the current market range. Strong beef demand continues to be seen through the summer months, with active buyer support in feeder cattle buying likely to continue in the near future.
Lean hog futures were mixed in lackluster trade Friday. Summer contracts were posting light to moderate gains Friday morning on strong financial market moves and indications that positive gains are seen in trade talks with China. October through April contracts were holding light losses as follow-through pressure after the hogs and pigs report Thursday limited buyer interest. Traders continue to be slightly disappointed that overall hog numbers have not eased. However, many of the adjustments seen Friday seem to be focused on backing away from pre-report positions rather than any major shift in market direction following the report. Nearby gains are supported based on strong continued demand, while long-term supply levels may continue to limit price support through the winter months.
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