[Tues]: Despite the fire, The Hightower Report suggested trade “seems to be over-reacting to the news,” though they do not deny the loss of the slaughter plant is a bearish force. “Packers will have more leverage,” they said… [Mon]: Boxed beef cutout values this afternoon were higher… Choice rose $2.25…  Select went up $3.98… There were no reported negotiated cash sales in Iowa/Minnesota or Nebraska. With the fire at the Tyson slaughter plant, there is expected less demand for live inventory, The Hightower Report said, leading to that limit-down trading. “While the news is negative to the cash market, it should be at least partially offset by higher demand from other plants and from higher beef prices,” they said… 

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Tue 8/13/2019 9:19 AM

 

Cattle - Live cattle futures posted limit losses in nearby contracts Monday, according to Brugler Marketing and Management.

 

Despite the fire, The Hightower Report suggested trade “seems to be over-reacting to the news,” though they do not deny the loss of the slaughter plant is a bearish force. “Packers will have more leverage,” they said.

 

Livestock markets volatile

 

The cattle market plunged to limit-down closes Monday but that helped push pork higher, according to The Hightower Report. Cattle's tumble yesterday is due to the fire at a Tyson slaughter plant, causing it to shut down indefinitely.

 

Smithfield launched a line of soy-based meat products, joining an increasing number of companies providing meat alternatives, according to Allendale.

 

Mon 8/12/2019 4:31 PM

 

Boxed beef cutout values this afternoon were higher on good demand and heavy offerings, USDA said.

 

Choice rose $2.25 to $218.62/cwt.

Select went up $3.98 to $197.79.

 

There were no reported negotiated cash sales in Iowa/Minnesota or Nebraska.

 

With the fire at the Tyson slaughter plant, there is expected less demand for live inventory, The Hightower Report said, leading to that limit-down trading. “While the news is negative to the cash market, it should be at least partially offset by higher demand from other plants and from higher beef prices,” they said.

 

“The long-term impact (of the plant closing) is still uncertain,” Stewart-Peterson said. “Live cattle contracts out to Jun 2020 have not come off their limit down open so far today and feeder contracts out to at least Mar 2020 have not come off their limit down open.”

 

Tyson plant fire hurts cattle

 

Both live and feeder cattle finished limit down today. This came after a fire at the Tyson Foods plant pushed the market down, Virginia McGathey of McGathey Commodities said. Expanded limits tomorrow could make it a “wild ride,” Virginia McGathey of McGathey Commodities said.

 

The market gave back all of its gains today in lean hogs, as the limit-down move in cattle held December hogs lower, The Hightower Report said. “A firm tone for pork cut-out values in the U.S. and a surge in pig prices from China helped to support the market into the midday.”

 

Corn headlines tumble in grains

 

Corn finished the day limit down after the midday reports showed a slight reduction in acres, but a 3.5 bushel per acre increase in yield projections, stunning traders. “I don’t think anyone expected the USDA to take the yield up that much. I don’t have a problem with the area estimates, because with a re-survey they should have a good handle on those. I don’t see where they think we are getting that yield out of the crop,” Jack Scoville of the Price Futures Group said.

 

After the close of the markets, the crop progress report was released from the USDA, showing corn condition held steady from last week, sitting at 57% Good/Excellent. Soybeans also held steady from last week, at 54% Good/Excellent.

 

Corn

 

“Total production and yield were both above trade expectations,” Ami L. Heesch of CHS Hedging said. “Big carryouts and slowing demand is expected to wear on corn prices going forward.”

 

“What’s the expectation for demand over the next couple of months? That’s really going to tell the tale of if we see the drop continue tomorrow,” Virginia McGathey of McGathey Commodities said. She added that expanded limits tomorrow could bring some added volatility to trade.

 

Soybeans

 

Soybean numbers were lower despite numbers in today’s report being relatively positive. End and world stocks were lower than the July number, but corn’s weakness weighed on prices Steve Freed of ADM Investor Services said.

 

Soybeans saw a decrease in acreage as well, much of the selling pressure can be attributed “buying the rumor, selling the fact,” Virginia McGathey of McGathey Commodities said. “We thought there might be a little bit of a bump there, but it just didn’t happen.”

 

Wheat

 

With increased stocks and production forecasts, what saw 25 cent losses in many of the upcoming contracts. Wheat is expected to be at 1.98 billion bushels for production, and 1.014 billion bushels of ending stocks, both well above expectations. Weakness in corn and soybeans also pressured the market, Ami L. Heesch of CHS Hedging said.

 

The decline in wheat prices started before the reports came out today, as open interest was “quickly collapsing,” ahead of the report, Stewart-Petersons said. That defensiveness continued as the prices continued into the report and after.

 

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