…Chinese importers are preparing applications for waivers on import tariffs on certain U.S. products, Steve Hyde of CHS Hedging said. “The list included beef, pork, soybeans…

 

[Weds]: … the news that China is going to boost inspections of imported Canadian meats “is seen as a possible bullish development for U.S. pork if China continues to shun Canadian products”… Chinese importers are preparing applications for waivers on import tariffs on certain U.S. products, Steve Hyde of CHS Hedging said. “The list included beef, pork, soybeans… [Tues]: National carcass base down 13 cents… Iowa-Minnesota carcass base down 18 cents… USDA reported carcass cutout values this afternoon fell $1.26… The trade war continues to scare traders, as exports have been impacted for the lean hog market. “Ideas that cash hogs will not be able to rally much this month has helped to keep the market in a long liquidation selling mode,” The Hightower Report said… 

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Wed 6/5/2019 8:46 AM

 

Lean hogs - If the markets are primed to continue their follow-through on yesterday’s positive day, The Hightower Report said having no tariffs on Mexico will be a key.

 

They also said that the news that China is going to boost inspections of imported Canadian meats “is seen as a possible bullish development for U.S. pork if China continues to shun Canadian products.”

 

11,000 animals affected by ASF in Hong Kong

 

The second outbreak of African swine fever in Hong Kong is involving an estimated 4,700 animals, Allendale said. Between the two reported cases in Hong Kong, more than 11,000 animas have been estimated to be affected.

 

Chinese importers are preparing applications for waivers on import tariffs on certain U.S. products, Steve Hyde of CHS Hedging said. “The list included beef, pork, soybeans coal and copper scrap,” Hyde said.

 

Tue 6/4/2019 4:54 PM

 

In weighted average negotiated prices for barrows and gilts, USDA reported;

 

National carcass base down 13 cents to $75.98/cwt.

National live was unchanged, staying at $59.73

Iowa-Minnesota carcass base down 18 cents to $76.57

 

USDA reported carcass cutout values this afternoon fell $1.26 to hit $83.65/cwt.

 

Scott Shellady called the lean hog chart “pretty painful,” after the market close today. He said the markets were buying every dip, but said the short-term outlook now has changed as managed funds appear to be liquidating.

 

The trade war continues to scare traders, as exports have been impacted for the lean hog market. “Ideas that cash hogs will not be able to rally much this month has helped to keep the market in a long liquidation selling mode,” The Hightower Report said.

 

Cattle rebounds on oversold ideas

 

There is a “more positive demand tilt” to the cattle market, The Hightower Report said. They said talk of the oversold condition is helping keep the market afloat, but concerns remain that the cash markets will break.

 

Currently, the lean hog market is oversold according to Stewart-Peterson. They said the successful test of the 200-day moving average for the fourth time over the past six sessions is “impressive.”

 

Mexico trade dispute looms

 

Weakness in the wheat market pushed grain markets well away from their highs today as the U.S./Mexico trade dispute is taking center stage, Ami L. Heesch of CHS Hedging said. It is expected that President Trump will be moving forward with the 5% tariff on all Mexican goods starting next weeks, while Mexico “is planning to enter into discussion on trade issues tomorrow, regardless of the tariff implication.”

 

While planting delays continue to be a positive for the markets, there are still questions about how the Market Facilitation payments will affect the landscape, The Hightower Report said. “A final decision on how producers can calculate their options is forthcoming from the USDA later this week,” they said.

 

Corn

 

After early reaction to yesterday’s Crop Progress report were sharply positive, news that farmers will be continuing to plant corn into next week put a stop to major gains, Ami L. Heesch of CHS Hedging said. “They will go as long as the weather allows them to,” she said.

 

Even though many farmers continue to plant, and will as long as they can, planting the 30.5 mln acres that remain “may be a tall task,” Stewart-Peterson said. “Many conversations over the last 48 hours have indicated producers have already thrown the towel in where saturated soils exist and will go prevent plant. Of course the other variable is just what late planted corn really looks like in the end. Most producers do not be exhibiting a high level of confidence that their yield will be what it has been in recent year.”

 

Soybeans

 

Soybeans are still being supported by the low planting numbers today, but slower demand for exports and a drier upcoming forecast have brought in resistance to prices, Steve Freed of ADM Investor Services said. “There has been some talk that China could roll forward or even cancel open and unshipped US soybean sales to China,” he said.

 

Soybean planting progress is the lowest on record going back to 1980, but northern states should be able to make progress this week, The Hightower Report said. “The next concern will be a yield drag on late planted soybeans,” they said. “In 1993 there was a 3% decline from trend and in 1995 there was a 7% decline from trend.”

 

Wheat

 

“The wheat market took profits after the recent rally,” Ami L. Heesch of CHS Hedging said. She noted that world supplies are expected to be abundant with the 2019/20 stocks, with an estimated 293.0 mmt number.

 

“Wheat futures reversed their recent uptrend and traded lower,” Steve Freed of ADM Investor Services said. “Fact USDA increased weekly US winter wheat crop ratings despite concern that wet weather was reducing quality thus ratings and estimated US 2019 spring wheat crop much higher than expected and last year weighed on prices.”

 

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