[Weds]: … Allendale said futures are “appearing to be finding support in cash bids,” posted at $123 in Nebraska, and as high as $124 in Iowa… [Tues]: Choice fell 30 cents… Select fell 95 cents… In negotiated cash sales, there was no reportable trade in Nebraska. In Iowa-Minnesota 70 head sold dressed at $193…
Farm Commodity Newsletter/Iowa Farmer Today
Wed 1/9/2019 8:43 AM
Cattle - February and June cattle contracts each posted new contract highs yesterday, along with both posting their highest closes. Allendale said futures are “appearing to be finding support in cash bids,” posted at $123 in Nebraska, and as high as $124 in Iowa.
After the recent rally in live cattle, Blue Line Futures said that some traders are suggesting that the start of the Goldman roll caused the rise. “It is actually the opposite,” Blue Line Futures said. “Sell (the) front month and buy the next one out.”
Tue 1/8/2019 5:13 PM
Boxed beef cutout values this afternoon were weak to lower on light demand and heavy offerings, the USDA said.
Choice fell 30 cents to $213.98
Select fell 95 cents to $207.26
In negotiated cash sales, there was no reportable trade in Nebraska. In Iowa-Minnesota 70 head sold dressed at $193.
The cattle market was “choppy” at times but closed sharply higher, the Hightower Report said. “Ideas that beef prices will remain strong in spite of the increase in marketings this week helped support aggressive buying,” Hightower said.
“Technically, today was very strong,” Stewart-Peterson said. “The Feb. live cattle contract briefly traded down to its 20-day moving average support level and then surged higher to make a new contract high.”
Market confident in cattle
Higher cattle prices Tuesday showed confidence in the market, Stewart-Peterson said. “The market is expecting beef prices to stay relatively steady this week despite the increase in marketings.”
President Trump will address the country on border security at 8 p.m. central time, one of the key issues in the ongoing federal government shutdown that has resulted in closed FSA offices.
Trade talks extended
Corn and soybeans were down on Tuesday, although U.S. and China trade talks are still ongoing heading into Wednesday. “The US/Chinese trade talks were extended by a day, which was seen as a positive development,” The Hightower Report said, “as well as China allowing two new strains of soybeans for import, one from Syngenta AG and another from Dow AgroSciences.”
U.S. Secretary of Agriculture Sonny Purdue announced Tuesday an extension of the deadline to sign up for the Market Facilitation Program payments. The deadline was Jan. 15, but the partial government shutdown caused the closure of FSA offices on Dec. 28. The deadline will be extended the number of days the FSA offices were closed, once the shutdown ends.
Corn futures ended lower on news from China. “Talk that China may be done buying US soybeans may have offered resistance,” Steve Freed from ADM Investor Services said. “US farmer selling is steady after the New Year and ethanol margins remain negative.”
Progress on GMOs also pointed toward good news for corn markets down the road, The Hightower Report said, calling the U.S.-China trade talks “productive.” China approved a new GMO corn variety for imports. “The new strain of corn seed is developed by Dupont Pioneer and will be permitted for import until December 2021.”
Soybeans were slightly lower today, breaking a streak of four consecutive higher closes to start 2019. This happened despite positive news from trade talks. “However, with yesterday’s 1 million tonnes of soybeans purchased by Chinese private buyers, putting the total near 5 million tonnes, there seemed to be a ‘sell the fact’ attitude amongst trades,” the Hightower Report said.
Brazil continues to have concerns about dry weather, although its growing regions are expecting scattered showers across growing regions this week. “Below average precipitation in key growing areas could affect overall production on dryness concerns,” Michael Headlee of CHS Hedging says.
“The wheat market rose slightly on potential export demand,” Michael Headlee of CHS Hedging says.
“Wheat futures found support on talk US may do some of the Algeria wheat export tender,” Steve Freed of ADM Investor Services said.