[Tues]: The Cattle Report said that very few sales occurred in the forward markets except the routine dairy cattle forward sales… [Mon]: Boxed beef cutout values this afternoon were weak… Choice fell 65 cents… Select went up $1.87… In negotiated cash sales in Iowa-Minnesota, the USDA reported 41 head sold live at $114, with no dressed sales. There were no reported sales in Nebraska… “Cattle markets closed sharply higher today, finding buyers on positive trade news with Mexico over the weekend, as well as lower steer weights and less cash weakness than expected,” Stewart-Petersons said. They noted that average weights are light, and “with packers short on inventory for the week, we should see feedlots looking for at least $2.00 better than last week”…
Farm Commodity Newsletter/Iowa Farmer Today
Tue 6/11/2019 8:24 AM
Cattle - The Cattle Report said that very few sales occurred in the forward markets except the routine dairy cattle forward sales.
Dressed beef values were mixed with Choice down 0.65 and select up 1.87. The CME feeder index is 132.26. Pork cut-out values were up 0.98, Allendale said.
Mexican tariffs dodge boosts livestock
The markets were slow to start but strong to close yesterday as opinions of market direction turn more optimistic. The Mexican tariff proposal is off the table, market fundamentals seem on solid ground and cattle owners are pricing all offerings higher. Futures moved close to limit up on many contracts, according to The Cattle Report.
The national average base hog was down 62 cents at $75.27 per hundred pounds. Estimated FI hog slaughter for Monday was 477,000 head. That is 10,000 head above last week and 33,000 head larger than the same Monday last year, according to Brugler Marketing & Management.
Mon 6/10/2019 4:43 PM
Boxed beef cutout values this afternoon were weak on Choice and higher on Select on moderate demand and light offerings, USDA said.
Choice fell 65 cents to $221.66/cwt.
Select went up $1.87 to $208.79.
In negotiated cash sales in Iowa-Minnesota, the USDA reported 41 head sold live at $114, with no dressed sales. There were no reported sales in Nebraska.
“Cattle markets closed sharply higher today, finding buyers on positive trade news with Mexico over the weekend, as well as lower steer weights and less cash weakness than expected,” Stewart-Petersons said. They noted that average weights are light, and “with packers short on inventory for the week, we should see feedlots looking for at least $2.00 better than last week.”
Oliver Sloup of Blue Line Futures said he hopes the recent lows on feeder cattle are safe, but he said he “isn’t going out on a limb,” calling himself “cautiously optimistic.”
Cattle, hogs see increases
Avoiding tariffs with Mexico over the weekend has “renewed optimism” for livestock trade, Oliver Sloup of Blue Line Futures said.
All August cattle contracts finished sharply up, with the live cattle contract finishing limit up. “Talk that the break Friday was overdone and that the lighter average weights could mean that feedlots are current with marketings helped to support,” The Hightower Report said.
Choppy day in grains as planting progresses
Before the release of the Crop Progress report this afternoon, the trade was choppy on the day according to CHS Hedging’s Ami L. Heesch. Tomorrow also marks the Supply and Demand report which will also give the markets a direction.
The report, which released at 3 p.m., showed corn plantings at 83% through Sunday, 17 percentage points behind the 5-year average. Corn condition came in at 59% Good/Excellent, well behind last year’s ratings.
Soybeans planted are at 60% complete, 28 percentage points behind the 5-year average.
Oliver Sloup of Blue Line Futures said there is renewed optimism in the market right now, as he said there could be more “premium flowing into the markets” after tomorrow’s report. It is expected that the WASDE report may hint toward “additional walkbacks” by the USDA, Sloup said.
With corn export inspections for the week coming in at 850,647 tonnes, having the continued business channels open with Mexico and avoiding a tariff issue for the time being. However, The Hightower Report said there is still “plenty of uncertainty on just how much of the crop can get planted.”
Prices saw support from “decent” weekly export inspections and positioning ahead of tomrorrow’s WASDE report. However, favorable weather for planting is giving prices a lid for the day, Ami L. Heesch of CHS Hedging said.
With the late corn plantings, there are concerns additional soybean acres will add to the major supply of beans already in supply. “This is seen as a bearish force and the short-term weather forecast allows for increased planting,” according to ADM Investor Services. “The technical action is weak and the market is overbought and looks vulnerable to a bit more selling before finding support.”
Dryness in the Black Sea continues to bring wheat prices support, Ami L. Heesch of CHS Hedging said. There is expected to be more heat coming to Russia over the next few weeks adding to concerns.
While there is dryer weather, improving crop conditions in the U.S. is continuing to pressure the market. “It may take a significant crop issue to see a resumption of the uptrend,” ADM Investor Services said.