[Mon]: … the beef market is strong enough to “support more buying and perhaps higher cash cattle trade this coming week”… Friday’s Cattle on Feed report was considered bearish for deferred contracts and “friendly for the nearby,” The Hightower Report said… [Fri]: Boxed beef cutout values this afternoon were steady… Choice rose 9 cents… Select went up 24 cents… In negotiated cash sales in Nebraska, the USDA reported 1,839 head sold live at $126.50-128, with 1,937 head sold dressed at $204-205. In Iowa/Minnesota, 2,086 head were sold live at $127-130, with 1,886 head sold dressed at $204-206… “Strong beef demand has been a major source of support recently,” Stewart-Peterson said, but along with that, they noted there has been lighter than expected production. That could continue with the upcoming weather patterns over the weekend… Today’s Cattle on Feed report “isn’t much of a surprise,” Chris Lehner of ADM Investor Services said…  

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Mon 3/11/2019 8:52 AM

 

Cattle - With a technically overbought market, “the short-term weather may provide additional support,” The Hightower Report said. The upcoming forecast shows an additional inch or two of moisture may high Texas, Oklahoma, Kansas and Nebraska, impacting the market.

 

The Hightower Report added that the beef market is strong enough to “support more buying and perhaps higher cash cattle trade this coming week.”

 

Cattle on Feed gives mixed reactions

 

Friday’s Cattle on Feed report was considered bearish for deferred contracts and “friendly for the nearby,” The Hightower Report said. They noted that the numbers appear to have producers more current with marketings than expected. Last week’s cattle slaughter came in at 603,000 head, staying steady with the previous week.

 

Prices in China helped spark last week’s rally in hogs. Fund traders have a short position, so “it did not take much in the way of positive news on prices in China to support a significant rally late last week,” the Hightower Report said.

 

Fri 3/8/2019 4:23 PM

 

Boxed beef cutout values this afternoon were steady on light to moderate demand and offerings, USDA said.

 

Choice rose 9 cents to $226.13/cwt.

Select went up 24 cents to $218.78.

 

In negotiated cash sales in Nebraska, the USDA reported 1,839 head sold live at $126.50-128, with 1,937 head sold dressed at $204-205. In Iowa/Minnesota, 2,086 head were sold live at $127-130, with 1,886 head sold dressed at $204-206.

 

Today’s buying pushed the market to a new contract high, as the market dealt with “choppy to lower trade early today,” The Hightower Report said. “Hefty rain totals are in the forecast for the next five days for Texas, Oklahoma, Kansas and Nebraska,” they said, holding feedlot performance and weights lower.

 

“Strong beef demand has been a major source of support recently,” Stewart-Peterson said, but along with that, they noted there has been lighter than expected production. That could continue with the upcoming weather patterns over the weekend.

 

Cattle on-feed doesn't surprise

 

Today’s Cattle on Feed report “isn’t much of a surprise,” Chris Lehner of ADM Investor Services said. Placements in feedlots during January was 5 percent below 2018 at 1.96 mln head. Marketings of fed cattle totaled 1.91 mln head, a 3 percent increase from last year.

 

“It is neither a bullish report or bearish in my opinion,” Lehner said. “I don’t think it is a secret there were and going to be less cattle placed. From the beginning of 2019, year to date slaughter has been down. It is possible over next couple of months kill could increase slightly with feeders ‘stunted’ and behind a month due to weather start moving to kill.”

 

WASDE weighs down markets

 

Not much changed in today’s WASDE report when it comes to soybeans. “USDA did little to the U.S. and World soybean supply and demand,” Steve Freed, VP of ADM Investor Services said. “This may have disappointed the demand bulls.”

 

There was also discussions of delays on a U.S./China trade deal, which hurt the market today, Freed said. “There was some talk that China may drop their import tariffs for U.S. imported goods over the weekend,” he said, but that failed to attract new buying.

 

Corn

 

Ahead of the WASDE, “prices were lackluster,” Ami L. Heesch of CHS Hedging said. “Weather still looks iffy for early to normal seedings this year.” The USDA did lower world ending stocks for corn, and raised 2018/19 carryout by 100 mln bushels.

 

Today’s report was “bearish” for corn, as U.S. ending stocks are at 1.835 bln bushels, higher than estimates were expecting, The Hightower Report said. However, this was partially offset by a lower world stock number, they said.

 

Soybeans

 

A “bust in the trade talks and ample supplies of soybeans” hurt soybeans today as they traded lower, Ami L. Heesch of CHS Hedging said. Ending stocks were lowered in today’s WASDE report, but they “still came in at 900 mln bushels, which is still more than we need.”

 

Stewart-Peterson said that most commodities have been under pressure. “Fundamentally, there is not much of a strong argument, with such a large carryout, to expect bean prices to race to the topside anytime soon unless there is a weather event or some significant development in trade talks that the market may not be expecting.”

 

Wheat

 

Wheat finished mixed today as U.S. non-farm payroll data was negative to financial and energy prices, Steve Freed of ADM Investor Services said. There are still hopes that wheat could be included in a deal with China, but the “market appears to be trading higher World 2019 crop supplies and slower World economy,” he said.

 

USDA cut wheat exports by 40 mln bushels “which should not be a surprise to traders considering the recent slide in world wheat offers the last few weeks,” The Hightower Report said. “With U.S. futures down nearly 70 cents over the last eight weeks, the market seems to have priced in the bearish export outlook.”

 

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