[Fri]: Nearby cattle futures posted modest gains and the deferred contracts still are losing ground as discussions regarding the large current placements dominates the trade news, according to The Cattle Report… [Thurs]: Today, boxed beef cutout values weak… Choice down 54 cents… Select down 41 cents… In negotiated cash sales in Nebraska, the USDA reported live sales of 261 head at $119.00, with dressed sales of 700 head at $188.14. In Iowa, live sales of 838 head were reported at $119.00. Dressed sales of 42 head sold for $186.00…

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Fri 5/10/2019 8:45 AM

 

Cattle - Nearby cattle futures posted modest gains and the deferred contracts still are losing ground as discussions regarding the large current placements dominates the trade news, according to The Cattle Report. The negative trade news started the day yesterday with a selloff and additional news rallied futures for the close.

 

Dressed beef values were lower with choice down 0.54 and select down 0.41, Allendale said. The CME feeder index is 135.84.

 

Big exports fail to move cattle futures

 

“We had a really good week of beef export sales, but it didn’t really help the futures very much,” said Joe Vaclavik of Standard Grain.

 

Weakness in the stock market and weakness in hogs helped to pressure U.S. beef export sales, according to The Hightower Report. The USDA estimated hog slaughter came in at 472,000 yesterday, down 1.1% from last year’s pace.

 

Beef shipments were the largest weekly export total on record back to 2002 at 23,886 metric tons, said Brugler Marketing & Management.

 

Thu 5/9/2019 4:54 PM

 

Today, boxed beef cutout values weak on light to moderate demand and moderate to heavy offerings, USDA said.

 

Choice down 54 cents to $222.47/cwt.

Select down 41 cents to $207.08/cwt.

 

In negotiated cash sales in Nebraska, the USDA reported live sales of 261 head at $119.00, with dressed sales of 700 head at $188.14. In Iowa, live sales of 838 head were reported at $119.00. Dressed sales of 42 head sold for $186.00

 

Hightower says a strong rally for June cattle “leaves some hope that at least a short term low may be in place.” June live cattle closed at $111.95, up 87 cents, while August feeder cattle closed up 60 cents at $144.47. Cumulative beef sales for 2019 have reached 420,600 tonnes, down 1.1 percent from last year.

 

Choice beef values were down 86 cents at yesterday's close to 223.01, but were up 40 cents this morning to 223.41. Stewart-Peterson says “cash cattle trade has been trending lower much more quickly than beef values which is keeping packer profits strong and production levels very high.”

 

Hogs avoid downturn, cattle finish higher

 

A strong recovery kept the hog market from closing near-limit down Thursday. The Hightower Report says traders seen continued slow sales with China as a bearish force. Pork export sales for the week ending May 2 came in at 96,000 tonnes, compared with the average of the previous four weeks of 40,650.

 

Live cattle futures were mostly lower at midday, with June the lone exception. Barchart says wholesale boxed beef prices were mixed Thursday morning, with the Choice/Select spread widening to $16.42.

 

May soybeans push below $8

 

The nearby May soybean contract pushed below $8 for the first time since December 2008. Hightower says weakness is tied to a pessimistic outlook for the ongoing U.S.-China trade negotiations. Over 400,000 tonnes of net cancellations have been posted in this morning’s current export data.

 

Corn futures were down 4 to 9 cents at midday. Barchart says USDA indicated that 287,569 MT of old crop corn was sold the week of May 2, well shy of estimates. That represented just half of the previous week’s sales.

 

Corn

 

Hightower says the corn market is also feeling the pressure from troubled trade negotiations with China. May corn was down 10 ¾ to $3.44 ½, over 5 ½ off the contract high. A bearish 10-day weather forecast, with very little rain, also pressured corn markets Thursday.

 

Ethanol and DDG exports were the second largest ever for March, reports Barchart. DDG sales came in at 956,828 MT, with ethanol well below last year’s record at 140 million gallons.

 

Soybeans

 

As of May 2, cumulative soybeans sales stand at 88.2 percent of the USDA forecast for the 2018/2019 marketing year. Hightower says the five year average is 95.8 percent.

 

Soybeans meal futures were down $3.60 per ton, with May soil oil down 38 cents Barchart says. Census data, also released this morning, showed a record number of soybeans exported in March at 3.71 MMT (136.19 mbu).

 

Wheat

 

Hightower says wheat markets were under pressure today from the bearish outlook on trade negotiations.

 

Michaela White of CHS Hedging said there is also concern with the WASDE report tomorrow, but right now trade “appears to have taken center stage.”

 

Stewart-Peterson says Friday’s USDA Supply and Demand report should indicate ample inventories of wheat, both domestically and globally. Trade estimates are near 1.097 billion bushels for carryover for the 2018-2019 season.

 

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