[Tues]: The market sold off sharply Monday and yesterday’s wide range in cattle futures could define the market over the next several sessions, according to Hightower… [Mon]: Boxed beef cutout values this afternoon were steady… Choice fell 3 cents… Select went up $1.04… In negotiated cash sales in Iowa-Minnesota, the USDA reported 21 head sold dressed at $185, with 27 head sold live at $114. There were no reported sales in Nebraska. The Hightower Report also listed steep declines in equities, the trade war with China and the fact China devalued their currency as major reasons for today's selling of cattle…

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Tue 8/6/2019 9:13 AM

 

Cattle - The market sold off sharply Monday and yesterday’s wide range in cattle futures could define the market over the next several sessions, according to Hightower.

 

Last week’s beef supply was significantly lower with slaughter at 626,000 head, the smallest non-holiday kill since March 30, according to Allendale.

 

Livestock Markets mostly down

 

Livestock markets were sharply down on Monday but they did bounce back a little and could be more mixed today, according to Joe Vaclavik of Standard Grain.

 

Yesterday’s choppy trade came on the back of headlines about the escalation of the U.S. China trade war, according to Blue Line Futures.

 

Mon 8/5/2019 5:05 PM

 

Boxed beef cutout values this afternoon were steady on Choice and higher on Select on moderate to fairly good demand and moderate offerings, USDA said.

 

Choice fell 3 cents to $214.70/cwt.

Select went up $1.04 to $191.67.

 

In negotiated cash sales in Iowa-Minnesota, the USDA reported 21 head sold dressed at $185, with 27 head sold live at $114. There were no reported sales in Nebraska.

 

The Hightower Report also listed steep declines in equities, the trade war with China and the fact China devalued their currency as major reasons for today's selling of cattle. They also were pressured by liquidation of the hog market.

 

With the stock market seeing losses today, "there is still time to turn things around," Oliver Sloup said. He noted that things can change quickly in today's market, so there may still be a good buying opportunity ahead of traders.

 

Livestock sees volatile day

 

October cattle saw some sharp selling early on today, and failed to trade back up to a positive number. The low the contract hit was its lowest level in a month, as a "risk-off" tone in the marketplace is bringing in heavy selling in cattle, The Hightower Report said.

 

Meanwhile, the hog market hit its lowest level since Aug. 15 of 2018 before rebounding before the close of trade today. With the trade war hitting new heights between the U.S. and China, but traders saw value in the low point and created gains, with October's contract finishing up $1.70.

 

Crop progress shows conditions steady

 

Today was the final Crop Progress report ahead of next week's highly anticipated acreage update from the USDA.

 

In the report, corn's condition was moved down slightly to 57% Good/Excellent, a percentage point decrease from last week's mark of 58%. Corn silking is 15 percentage points behind the 5-year average, coming in at 78%.

 

Soybeans are also behind their normal pace, with only 37% reported at setting pods, 26 points behind average, but the condition of the crop held steady from last week at 54%.

 

After all the news about China depleted the markets going into the weekend, Oliver Sloup of Blue Line Futures said buyers were stepping in today and preventing the fall getting any worse. He said the overnight session traded with light volume and was a "little misleading," but today's rebound in trade is a positive sign, he said.

 

Corn

 

Corn saw bargain buyers emerge today, as the market was technically oversold Ami L. Heesch of CHS Hedging said. With cooler, wet forecasts coming out later in the day for parts of the Western Corn Belt and southern areas, but dryness staying warm in the Eastern Corn Belt, Heesch said there are concerns about how much damage could occur.

 

For today's progress report, "a big bulk of the numbers are in the fair category, so it can go either way," John Payne of Daniel's Trading said. "The late summer dryness we are getting is important to watch."

 

Soybeans

 

Trade concerns continue to drive the soybean market, Ami L. Heesch of CHS Hedging said. However, around midday, prices saw a slight bounce back with weather conditions, but China news continued to limit the market.

 

"The recent dry spell in the Midwest has not been ideal for the develoopment of soybeans," ADM Investor Services said.

 

Wheat

 

Profit taking hurt the wheat market early on in trade, but like the other row crops, the prices turned higher in support. Exports remain on the low end, Ami L. Heesch of CHS Hedging said.

 

"The wheat market continues to be pressured by cheap Black Sea region and EU region FOB offers that are well below U.S. wheat offers," The Hightower Report said. "Steep declines in equity markets and the weakness in the Chinese yuan have also provided bearish forces."

 

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