[Tues]: The very fast recovery for the beef market helped to support the turn up in futures yesterday… It will be important to see higher beef prices in order to expect a further advance in the cash cattle market… [Mon]: Boxed beef cutout values this afternoon were steady… Choice rose $3.39… Select went up 26 cents… In negotiated cash sales in Iowa-Minnesota, the USDA reported 38 head sold dressed at $198, with no live sales. There were no reported sales in Nebraska… Another burst of cold weather this week for much of the Midwest could slow cattle movement and force packers to pay up this week…
Farm Commodity Newsletter/Iowa Farmer Today
Tue 2/5/2019 9:15 AM
Cattle - The very fast recovery for the beef market helped to support the turn up in futures yesterday. “If demand is strong enough to overcome last week’ weather hit, beef prices should turned higher over the near-term,” said the Hightower Report.
It will be important to see higher beef prices in order to expect a further advance in the cash cattle market said The Hightower Report. “It is still possible that beef demand will be sluggish this week as the pipeline slowed to a crawl last week,” the Report said.
Livestock futures looking positive
Cattle and hog futures were sharply higher on technical buying, with live cattle nearing recent contract highs and lean hogs rebounding from a multi-month low, traders said. Firmer prices for pork and beef in the wholesale market also helped push future prices higher, according to Allendale.
Several countries started to reduce the amount of beef they import from Poland after a TV documentary showed an abattoir killing sick cows, the head of the meat producers lobby said. He did not name any countries or give details on the size of the cuts, Allendale said. Poland produces roughly 560,000 tonnes of beef per year with 85% of it for export.
Mon 2/4/2019 5:02 PM
Boxed beef cutout values this afternoon were steady on Choice and higher on Select on light to moderate demand and light offerings, USDA said.
Choice rose $3.39 to $217.65/cwt.
Select went up 26 cents to $213.41.
In negotiated cash sales in Iowa-Minnesota, the USDA reported 38 head sold dressed at $198, with no live sales. There were no reported sales in Nebraska.
Stronger product values and “ok margins” helped cattle trade higher today, Ami Heesch of CHS Hedging said. Another burst of cold weather this week for much of the Midwest could slow cattle movement and force packers to pay up this week, she said.
The market closed well off the mid-session highs, The Hightower Report said. “The market must have sensed that cash cattle will move higher and the higher beef market helped to support,” they said.
Hogs, cattle bounce up
Today’s reversal for hogs brought the February contract off a six-month low. This “is seen as a positive development with April hogs seeing a steady flow of buying through-out the session to close limit-up,” The Hightower Report said.
Despite positive cash fundamentals today, “live cattle closes could be considered disappointing,” Stewart-Peterson said. “Second quarter beef production is expected to be up 410,000 lbs from the first quarter, which would be the largest increase since 2008.”
Quiet day in grains
It was a quiet day in the grains as traders are waiting for the week’s government reports, Ami L. Heesch of CHS Hedging said. “China was said to have purchased anywhere from 1.0-3.0 mmt of U.S. beans last week and this week they are off the markets as they celebrate their Lunar New Year holiday.”
Traders are waiting on Friday’s “data dump” from the USDA as they release January and February information. Stewart-Peterson said that their bias for corn is “that yield could be reduced on this report and exports increased.”
Corn stayed sideways today, “on lack of any news that could provide market direction,” Ami Heesch of CHS Hedging said. She said the Argentine crop is thought to be getting bigger on beneficial weather.
“Good demand and slow farmer selling should support prices, while lower World export prices could slow new U.S. export demand,” ADM Investor Services said. “Talk of higher U.S. 2019 supply could limit the upside.”
“The uptrend in new crop remains intact with prices reaching their highest level on Friday since early December,” Stewart-Peterson said. They said a series of higher highs and higher lows remains intact, suggesting prices “could eventually make a move toward $9.90.”
Soybeans were 3-4 cents higher on the open today, but Ami Heesch of CHS Hedging said they failed to hold onto their gains. The strength came out of the recent China news, but there is also talk we could “see an upward revision to last year’s Brazilian soybean crop which was last reported at 120.3 mmt.”
Despite a higher U.S. dollar, U.S. wheat managed to hold some small gains, Steve Freed of ADM Investor Services said. “Wheat export prices are competitive, but key buyers like Egypt continue to buy Russia and east Europe,” he said. “This offers resistance to prices.”
“The market continues to find underlying support from the rising Russian wheat prices and slowing export pace,” The Hightower Report said. They noted that Russian export prices are staying relatively steady at $245 per ton last week, after four straight weeks of increases.