[Thurs]: Three lots were sold in yesterday's Fed Cattle Exchange offerings of fat cattle, Allendale reported. One of them, 72 head of Kansas heifers, sold for $113. This follows light sales in the past two days. This price would be $2 lower than last week's average… On the beef end of the possible tariffs against Mexico, it is true they are our number 3 buyer of processed beef with a 14% share of all exports. At the same time, we receive 1.3 million head from them in the form of lightweight calves and feeders. That comes out to 5% of our steer/heifer slaughter annually, Allendale said… [Weds]: Boxed beef cutout values this afternoon were lower… Choice dropped 89 cents… Select went down 3 cents… In negotiated cash sales in Nebraska, the USDA reported 828 head sold live at $114, with 708 head sold dressed at $183. In Iowa/Minnesota, 341 head were sold live at $114-116, while 2,080 head were sold dressed at $182-188. The rally in cattle over the course of the week so far can be attributed to some of the cash trade rising, Virginia McGathey of McGathey Commodities said. “We don’t see this big trajectory on the upside,” she said, but said the market is looking for continued follow-through support…

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Thu 6/6/2019 8:49 AM

 

Cattle - Three lots were sold in yesterday's Fed Cattle Exchange offerings of fat cattle, Allendale reported. One of them, 72 head of Kansas heifers, sold for $113. This follows light sales in the past two days. This price would be $2 lower than last week's average.

 

Wholesale boxed beef prices were lower on Wednesday afternoon, according to Brugler Marketing & Management. Choice boxes were down 89 cents at $222.11 with Select boxes 3 cents higher @ $207.18.

 

Mexico tariffs could impact beef

 

On the beef end of the possible tariffs against Mexico, it is true they are our number 3 buyer of processed beef with a 14% share of all exports. At the same time, we receive 1.3 million head from them in the form of lightweight calves and feeders. That comes out to 5% of our steer/heifer slaughter annually, Allendale said.

 

Live and Feeder Cattle have continued to work sideways to slightly high in a still predominately down trending market, according to the Nemenoff Report.

 

Wed 6/5/2019 4:54 PM

 

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

 

Choice dropped 89 cents to $222.11/cwt.

Select went down 3 cents to $207.18.

 

In negotiated cash sales in Nebraska, the USDA reported 828 head sold live at $114, with 708 head sold dressed at $183. In Iowa/Minnesota, 341 head were sold live at $114-116, while 2,080 head were sold dressed at $182-188.

 

The rally in cattle over the course of the week so far can be attributed to some of the cash trade rising, Virginia McGathey of McGathey Commodities said. “We don’t see this big trajectory on the upside,” she said, but said the market is looking for continued follow-through support.

 

Today’s follow-through buying helped pull the market “out of oversold levels,” Stewart-Peterson said. “Prices are no longer oversold and could continue to move higher,” they said. “Feeder cattle markets put in a more significant bounce today, with the August feeder cattle contract testing its 10-day moving average resistance level. A break above that tomorrow could trigger more short-covering.”

 

Cattle continues to bounce back

 

The cattle market traded to a 3-session high today, with the August feeder contract the big winner today. “Talk of the oversold condition and ideas that the recent move to contract lows might have helped to support better demand helped to support a bounce,” The Hightower Report said.

 

The hog market firmed up overall today, with the exception of the upcoming June contract. Virginia McGathey said commercial buying really helped support the market today, and the sentiment is that Asia will need pork soon, and that is still expected to be the sentiment long term.

 

China, Mexico disputes hang over trade

 

Steve Freed of ADM Investor Services said with the Chinese dispute continuing and the current Mexico issues is how much it is impacting U.S. demand. “Why would funds buy anything without a trade war resolution?” he said. “Especially if US weather improves over the next few weeks.”

 

There is expected to be more information later this week on the Market Facilitation Payments and how that program will be able to help those that take prevent plant as an option this year, The Hightower Report said. They suggested the announcement could come on Friday or next week as President Trump may be in Iowa.

 

Corn

 

With additional Mexican tariffs possible, “it is going to be difficult for a lot of farmers in light of the fact they are bearing the brunt of the China problem,” Virginia McGathey of McGathey Commodities said. She said there is concern about acres and yields, which may bring some room on the upside, but the market overall weighed on grains today.

 

Dry weather over the next seven days is expected, helping to pressure the corn market significantly today, The Hightower Report said. There was also a sharp sell-off in crude oil while is weighing on prices as well, they said.

 

Soybeans

 

No trade deal is limiting new buying from China, Steve Freed of ADM Investor Services said. “Threat of POTUS imposing a tariff on Mexico goods could also slow their buying of U.S. soybean and soymeal,” he said.

 

Increased soybean acres will cap any rally that may be found in soybeans, Virginia McGathey of McGathey Commodities said. “There are so many bearish factors,” she said, citing trade and other issues that may drag down the soybean markets.

 

Wheat

 

“The fact USDA this week rated the 2019 US spring and Winter wheat crop higher than expected may have also weighed on prices,” Steve Freed of ADM Investor Services said. “Informa estimated US 2019 wheat acres near 45.0 million versus USDA 45.8 and 47.8 last year. Informa also suggested that US 2019 wheat yield would be near 49.7 vs USDA 48.6.”

 

The wheat outlook is bearish as “traders were likely exiting long positions to as sell stops were triggered,” Stewart-Peterson said. “A reversal downward moving into harvest may have also triggered additional cash selling by producers.”

 

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