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After the Bell
Soybean futures ended mostly 12 to 15 cents higher today. For the week, futures rebounded from sharp losses Monday to post gains and finished near weekly highs. March soybean ended the week 13 1/2 cents higher; November beans ended 15 cents higher. Forecasts call for rains in Argentina and southern Brazil this weekend, with the rains expected to continue through the middle of next week in Argentina. If this forecast materializes, soybeans could face corrective selling pressure early next week.
Corn futures spent much of the day in negative territory, but they rallied into the close to finish mostly 1 to 3 cents higher. Corn futures finished with slight gains for the week. While much of the damage to the South America corn crop is irreversible, late-planted corn still has a chance to benefit from rains, so traders will continue to monitor weather there.
Chicago and Kansas City wheat futures closed slightly lower amid corrective selling, with Minneapolis firmer. For the week, wheat futures posted solid gains. News Russia will not limit grain exports triggered profit-taking, but pressure was limited by ongoing concerns about winterkill in northern Europe and the Former Soviet Union (FSU).
Cotton futures more than erased gains posted earlier in the week with today's sharp price improvement. For the week, March cotton ended above last week's close. Traders were more willing to add risk in reaction to this morning's monthly employment report. A reduction in the unemployment rate paints a rosier outlook for the U.S. economy, translating into a more favorable environment for traders to extend long positions.
Lean hog futures finished 5 to 82 1/2 cents lower in the February through July contracts, while far-deferred contracts were slightly higher. For the week, futures posted slight to moderate gains. Hog traders will focus on the pork product market next week. While there are hopes fundamentals will gradually improve, packers will be reluctant to raise cash hog bids until the pork market is strong enough to pull cutting margins out of the red.
Live cattle futures extended losses to 45 cents to $1.52 1/2 as traders actively booked profits heading into the weekend after an unimpressive weekly performance in the boxed beef market. Cash cattle trade got underway today at $123 in the Plains -- $1 lower than last week. As packer profit margins remain deep in the red, they will be very reluctant raise cash bids next week.
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*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.
