[Weds]: Choice lost 60 cents… Select fell 65 cents… In Nebraska negotiated cash sales, USDA reported 670 head sold live at $118 and 60 head sold dressed at $185. In Iowa-Minnesota, 42 head sold dressed at $180; no live sales posted… The cattle market has seen very little cash trade to provide direction, said Virginia McGathey of McGathey Commodities. She said firm feeder prices indicate “optimism is in the air and could spark some commercial buying”…
Farm Commodity Newsletter/Iowa Farmer Today
Thu 12/6/2018 8:57 AM
Cattle - The Fed Cattle Exchange yesterday reported 219 head offered and all 219 head sold at a weighted average price of $117.83, up from $116.75 on 148 head sold a week ago.
Live and feeder cattle futures rose a little in the past week, which Marc Nemenoff of The Price Futures Group said offered the opportunity to go short at his target price of $122 in February live cattle.
January feeder cattle yesterday continued to recover from a low and a test of support at $143.50, said Ben DiCostanzo of Walsh Trading. The contract passed resistance at $145.05 and “The next test is the $146.20 resistance level,” and then the 200-day moving average at $147.60.
Wed 12/5/2018 4:54 PM
Boxed beef cutout values this afternoon were weak on light to moderate demand and moderate offerings, USDA said.
Choice lost 60 cents to $213.26/cwt.
Select fell 65 cents to $196.86.
In Nebraska negotiated cash sales, USDA reported 670 head sold live at $118 and 60 head sold dressed at $185. In Iowa-Minnesota, 42 head sold dressed at $180; no live sales posted.
Trading was light and February live cattle futures continued to break out to the upside, said Ben DiCostanzo of Walsh Trading. “Continued upward pressure could see price test resistance at $124.30. A pullback from the high could see price fall back into the $121.625-118.575 trading range.”
The cattle market has seen very little cash trade to provide direction, said Virginia McGathey of McGathey Commodities. She said firm feeder prices indicate “optimism is in the air and could spark some commercial buying.”
Livestock mostly higher
December live cattle futures broke through $118 for the first time since Oct. 29 and January feeders rose for the first time in eight sessions, noted Michael Headlee of CHS Hedging.
Lean hog futures for December finished lower, but other months gained.
Trading light on day of mourning
With many U.S. financial markets closed for a day of mourning President George H.W. Bush, grain futures trading was fairly quiet. Some soybean traders took the day off and some tried to take advantage of the slow day, said Virginia McGathey of McGathey Commodities.
“I believe we will start hearing further noise in the market about increased plantings of corn at the expense of beans for the 2019-20 crop season,” said Sean Lusk of Walsh Trading. That prospect has merit now, but resolving trade disputes and weather could be the biggest factors determining corn prices.
“Optimism on the China trade front persists, with talk that China could enter the market for U.S. ethanol in DDGs if talks progress,” Stewart-Peterson said. March futures chart
March futures resistance is near $9.20 with support near $9.00, said Steve Freed, grain research VP at ADM Investor Services. “Demand bulls are surprised that soybean futures are not higher,” and some think China eventually will buy 5 MMT of old- and new-crop beans after China’s tariffs are removed. But he said, “Still there is plenty of beans in the world.”
In a lack of news, the market traded off rumors, said Greg Johnson of The Andersons. One unconfirmed rumor is that China may be gearing up to buy U.S. soybeans and natural gas. Another is that details of the second market facilitation payment may come out late this week. And some private analysts have pegged Brazil’s crop up to 130 MMT vs. USDA at 120.4 MMT.
March Chicago futures are below support near $5.19, said Steve Freed, grain research VP at ADM Investor Services. “Some of today’s weakness may be linked to talk of deescalating tension in the Black Sea.”
“The wheat market traded lower as Egypt news unfolds,” said Michael Headlee of CHS Hedging. Egypt’s commodity agency did not issue letters of credit on wheat cargoes.