[Tues]: the market appears to be growing impatient with the fact that Mexican and Chinese tariffs have not been lowered on U.S. pork products, said Stewart-Peterson… [Mon]: National carcass base fell 38 cents… Iowa/Minnesota carcass base fell 28 cents… USDA reported carcass cutout values this afternoon rose 82 cents… Hog traders are still concerned that Mexico and China still have tariffs in place, The Hightower Report said. "Exports could stay low until a trade deal is complete with China," they said. However, there was some support seen from the weekend's report of ASF in China…
Farm Commodity Newsletter/Iowa Farmer Today
Tue 4/9/2019 8:39 AM
Lean hogs - More cases of African swine fever were reported this weekend in China, but the market appears to be growing impatient with the fact that Mexican and Chinese tariffs have not been lowered on U.S. pork products, said Stewart-Peterson.
April option expiration is on Friday; that could keep that market pinned as market makers try to drain the premium in options, Blue Line Futures reported. “This will continue to be a volatile market so be sure to manage your risk appropriately.”
Livestock markets hold steady
June Lean Hogs consolidated on Monday after making a new high for the up move on Friday, said Ben DiCostanzo of Walsh Trading.
Brazilian beef exports grew 2.6% in the first quarter of 2019 to 405,669 million metric tons, the trade group Abiec said.
Despite the increase, revenue from beef sold decreased to $1.6 billion during the first quarter $1.69 billion last year, Allendale reported.
Mon 4/8/2019 5:18 PM
In weighted average negotiated prices for barrows and gilts, USDA reported;
National carcass base fell 38 cents to $75.40/cwt.
National live fell 98 cents to $58.61
Iowa/Minnesota carcass base fell 28 cents to $76.38
Iowa/Minnesota live fell 61 cents to $59.00
USDA reported carcass cutout values this afternoon rose 82 cents to $83.29/cwt.
Hog traders are still concerned that Mexico and China still have tariffs in place, The Hightower Report said. "Exports could stay low until a trade deal is complete with China," they said. However, there was some support seen from the weekend's report of ASF in China.
Hogs "had a pullback today," Virginia McGathey of McGathey Commodities said. The markets are very strong across the board, she said, but there might be some correction going on right now. She said the market should come down anytime soon.
Forecast looming for traders
The forecast wet weather that could swing through the middle part of the country may slow movement of cattle and hogs, Ami L. Heesch of CHS Hedging said.
While cattle traded slightly higher today, Virginia McGathey of McGathey Commodities said the lack of cash trade limited any upside.
Quiet day ahead of WASDE
Grain markets were relatively quiet today ahead of tomorrow's WASDE report, Ami L. Heesch of CHS Hedging said. There was also no news about a U.S./China trade deal, which kept volume low.
Steve Freed of ADM Investor Services said that Chinese officials on Saturday indicated there were talk of draft agreements ahead. "The overall trade sentiment remains optimistic that the U.S. and China will close a trade deal in the very near future," he said.
Corn fell today as traders squared their position ahead of tomorrow's WASDE report, Ami L. Heesch of CHS Hedging said. While there is expected to be rains hitting the midwest, "the market does not seem bothered," she said, noting that the thought is farmers may only need a couple weeks of good weather to get a crop in the ground.
"The market has significant carry priced in and may be telling farmers to either sell the new crop or that it doesn't necessarily want your old crop at present," Stewart-Peterson said. "At least that's the way the futures are trading. Instances of strong basis improvement due to a lack of farmers' selling and end user buying is providing underlying support."
Corn seedings are at 2 percent through Sunday.
For tomorrow's WASDE report, soybeans are expected to come in near 912 mln bushels for ending stocks, with some estimates reaching into the 1 bln threshold, Steve Freed of ADM Investor Services said.
"Everyone is wringing their hands" over the WASDE report, Virginia McGathey of McGathey Commodites said. She said the Brazil beans are still less expensive to China, so soybean traders are looking for something positive, but that puts a lid on most opportunities.
There was technical selling today, combined with ideas the Canadian farmers may switch some acres from canola to spring wheat, lowering prices today, Ami L. Heesch of CHS Hedging said.
The weather is also impacting the wehat markets, as traders will watch a storm that could dump as much as 12 inches of snow in South Dakota and Minnesota, which could cause some issues for farmers.
Spring wheat seedings are at 1 percent complete.