[Fri]: The cattle market looks cheap and traders are looking for a technical sign of a short-term low, according to The Hightower Report… [Thurs]: Boxed beef cutout values this afternoon were lower… Choice was down $1.23… Select fell $4.48… In negotiated cash sales in Nebraska, the USDA reported 1,370 head sold live for $100-103, and 6,345 head sold dressed for $160-169. In Iowa-Minnesota, there were 3,696 head sold live for $101-107, and 1,456 head sold dressed for $163-169… “US beef exports for July came in at 273.48 mln pounds which was down from 274.04 mln in June and down from 279.66 mln last year,” the Hightower Report said…

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Fri 9/6/2019 9:10 AM

 

Cattle - Cattle futures are struggling with weak cash bids, according to Brugler Marketing and Management, whichadds that the Kansas Tyson plant is processing carcasses again but is not expected to resume slaughter for several months.

 

The cattle market looks cheap and traders are looking for a technical sign of a short-term low, according to The Hightower Report.

 

Livestock Market Struggles

 

The cattle market was sharply lower yesterday and hog prices seem split between domestic weakness and the clear need for pigs in China, according to The Hightower Report.

 

U.S. and Chinese envoys will meet in October, according to government sources.

 

Thu 9/5/2019 4:41 PM

 

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

 

Choice was down $1.23 to $229.42/cwt.

Select fell $4.48 to $204.47.

 

In negotiated cash sales in Nebraska, the USDA reported 1,370 head sold live for $100-103, and 6,345 head sold dressed for $160-169. In Iowa-Minnesota, there were 3,696 head sold live for $101-107, and 1,456 head sold dressed for $163-169.

 

The stock market’s strong open this morning was seen as a possible indicator of future beef demand. “The stock market is up over 400 points this morning which is seen as positive for the consumer beef demand but a hefty supply of market-ready cattle in the near term could create a bit of a backup situation,” Stewart-Peterson said.

 

“US beef exports for July came in at 273.48 mln pounds which was down from 274.04 mln in June and down from 279.66 mln last year,” the Hightower Report said. “Boxed-beef cut-out values at mid-session came in at $229.98, down 67 cents on the day.”

 

Cattle moves down with cash

 

Cattle markets were lower on Thursday due to the cash cattle trends and supply concerns. “The market closed sharply lower on the day with December cattle down into new contract lows,” the Hightower Report said. “Weakness in cash cattle this week and continued concerns for a short-term glut of supply continues to pressure the market.”

 

Hog markets saw some optimism from the upcoming resumption of trade talks with China. “The market closed higher but well off of the early highs,” the Hightower Report said. “The stock market rally today was based on expectations for a resumption of trade talks with China.”

 

Grain gets support from dollar

 

Grain markets saw support from a variety of factors on Thursday. “The lower U.S. dollar is supportive today, along with reports that lower level trade talks between China and the U.S. have begun as well as an announcement that high level talks are scheduled for some time in early October,” Stewart-Peterson said.

 

“Weather forecasts are a pressure point, with two-week outlooks showing above-normal temperatures,” Stewart-Peterson said. “Corn futures are still oversold after making new contract lows yesterday. While the small bounce today is nice to see, there is no signal yet that a low is in or that speculative funds will begin to cover their shorts.”

 

Corn

 

Grain markets saw support from a variety of factors on Thursday. “The lower U.S. dollar is supportive today, along with reports that lower level trade talks between China and the U.S. have begun as well as an announcement that high level talks are scheduled for some time in early October,” Stewart-Peterson said.

 

“Weather forecasts are a pressure point, with two-week outlooks showing above-normal temperatures,” Stewart-Peterson said. “Corn futures are still oversold after making new contract lows yesterday. While the small bounce today is nice to see, there is no signal yet that a low is in or that speculative funds will begin to cover their shorts.”

 

Soybeans

 

Soybeans saw some negative technical developments today and were unable to sustain a rally. “The soy complex turned lower today with damaging chart action in soybeans,” ADM Investor Services said. “November soybeans traded up to key resistance near 879 and failed, pushing down to 864 ¼ at mid-day.”

 

Analysts continue to make yield estimates. “The weaker tone could also be tied to the robust yield estimate yesterday by FC Stone coming in at 48.3 bushels per acre with production at 13.809 bln bushels,” ADM Investor Services said. “Brokerage group Allendale Inc. survey has the US yield at 46.1 bushels per acre compared to the August USDA's 48.5 bushels per acre.”

 

Wheat

 

Wheat export data was coming on Friday. “Wheat futures are trading 5 to 9 cents higher in the nearby contracts on Thursday,” Barchart.com said. “USDA Export Sales data is pushed back to Friday morning, with traders estimating sales to be in a range of 400,000-800,000 MT in the week of Aug. 29.”

 

“The Food and Agriculture Organization estimates the global wheat crop at 767 mln tonnes, down 0.5% from the July estimate on lower Russian and EU production,” ADM Investor Services said. “They see world wheat use at a record 760 mln tonnes on higher livestock feed usage in both the US and the EU.”

 

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