[Mon]: Cash cattle markets were “not as bad as feared” last week, but the market is still searching for support, The Hightower Report said. “Traders see sluggish demand and ample supply,” they said… [Fri]: Boxed beef cutout values this afternoon were steady… Choice rose 6 cents… Select went down 24 cents… In negotiated cash sales in Nebraska, the USDA reported 4,693 head sold live at $113-115, 1,793 head sold dressed at $183-185. In Iowa-Minnesota, 1,170 head were sold live at $112-117.50, while 457 head were sold dressed at $181-185… Cattle got an uptick from the cash trade today, but Virginia McGathey said the market is “definitely in a wait and see” mode. Traders are waiting to see what happens with the tariff war between Mexico and China, and “it has everyone very concerned.” She noted that feeder cattle is dealing with less market interest to end the week… 

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Mon 6/10/2019 8:39 AM

 

Cattle - For the August cattle contracts, both fed and live, their drop on Friday gives them an uncertain issue. “It is now a question of whether they will take out their recent low as hogs have,” Judy Crawford of the Zaner group said. “But hogs didn’t have the long term support that feeders are currently sitting on.”

 

With lower steer weights, prices may see support, but a lack of export news and “hefty short-term supply” may keep a lid on prices in the short-term. “Less feeder cattle supply and good pasture and range conditions should significantly slow placements of cattle onto feedlots,” they added.

 

Livestock looking for points of support

 

“There is still no sign of a short-term low but news that Mexico and the U.S. are not in a tariff war should help support,” The Hightower Report said. They said the market is developing a strong export pace, but the short-term trend is down as there is been weak domestic demand.

 

Cash cattle markets were “not as bad as feared” last week, but the market is still searching for support, The Hightower Report said. “Traders see sluggish demand and ample supply,” they said.

 

Fri 6/7/2019 4:30 PM

 

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

 

Choice rose 6 cents to $222.31/cwt.

Select went down 24 cents to $206.92.

 

In negotiated cash sales in Nebraska, the USDA reported 4,693 head sold live at $113-115, 1,793 head sold dressed at $183-185. In Iowa-Minnesota, 1,170 head were sold live at $112-117.50, while 457 head were sold dressed at $181-185.

 

Cattle got an uptick from the cash trade today, but Virginia McGathey said the market is “definitely in a wait and see” mode. Traders are waiting to see what happens with the tariff war between Mexico and China, and “it has everyone very concerned.” She noted that feeder cattle is dealing with less market interest to end the week.

 

The weakness in hogs and demand concerns helped to spark selling on the day in cattle, The Hightower Report said. With trade issues unresolved, it just “added to the negative tone.”

 

Hogs trade limit down

 

The story of the day came from hogs, Virginia McGathey of McGathey Commodities said. Hogs went limit down today, and will have expanded limits on Monday, with McGathey saying the trade war is continuing to drag down the price of hogs.

 

This week’s slaughter showed increases over last year for both hogs and cattle.

 

Hogs saw a 162,000 head increase over the same stretch last year, with 2.366 mln head slaughtered, while cattle saw a 2,000 head increase over last year, with 600,000 estimated head slaughtered.

 

Mexico, U.S. dispute enters weekend

 

This afternoon, President Trump said there is a “good chance” the U.S. and Mexico will agree on a deal, ahead of the U.S. imposing tariffs on Mexican goods, according to Reuters.

 

With a new WASDE report coming on Tuesday afternoon, the market is feeling “bearish,” Virginia McGathey of McGathey commodities. “It has everyone not feeling very well about these markets,” she said.

 

Corn

 

Corn has some underlying support, Virginia McGathey of McGathey commodities said. The wet weather is going to affect the acreage, she said. “There is an idea that absolutely we are going to reduce some of those estimates.”

 

With Mexico being a large importer of U.S. corn, the markets have not reacted well to the continuing tensions between the two countries. “Additional pressure could stem from jitters ahead of the crop progress report Monday, as conditions for corn will be reported,” Michaela White of CHS Hedging said.

 

Soybeans

 

Ahead of next week’s “key weather week,” Steve Freed of ADM Investor Services said some of the traders in long positions “may have decided to liquidate before Monday.” He said with a drier weather outlook, traders are looking get out before possible further drops in the market.

 

Tuesday’s WASDE report “may not provide the bullish numbers we’ve been expecting,” Michaela White of CHS Hedging said. She noted that lower trade also comes from improving conditions in upcoming forecasts which may allow for additional planting.

 

Wheat

 

Despite wheat futures falling, there was support from dry weather in Russia. Steve Freed of ADM Investor Services said the fact USDA rated the U.S. 2019 winter and spring crop higher than expected “offered resistance.”

 

Dryness in Canada is also helping the markets, The Hightower Report said, as conditions up north are helping Minneapolis wheat closing up 15 cents this week. Planalytics said the U.S. winter wheat is estimated to be 52.1 bushels per acre, a slight increase from their previous estimate.

 

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