[Tues]: The collapse of the cash market and a lack of any confidence of a short-term low has triggered aggressive selling, according to The Hightower Report… [Mon]: Boxed beef cutout values this afternoon were steady to weak… Choice fell 36 cents… Select went down 2 cents… In negotiated cash sales in Nebraska, the USDA reported 374 head sold live at $97, with no dressed sales. In Iowa/Minnesota, 580 head were sold live at $97, and 38 head were sold dressed at $160… The cash market is “still pretty slow,” Virginia McGathey of McGathey Commodities said….

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Tue 9/10/2019 9:19 AM

 

Cattle - The collapse of the cash market and a lack of any confidence of a short-term low has triggered aggressive selling, according to The Hightower Report.

 

Live cattle futures ended Monday with front months 32.5 to 67.5 cents lower, according to Brugler Marketing and Management.

 

Cattle Still Struggling While Pork Awaits China

 

The cattle market is still looking for a low while the pork market awaits news of exports to China, according to The Hightower Report.

 

China granted export licenses to 25 Brazilian meatpacking plants (17 for beef, 6 for chicken, 1 for pork and 1 other), according to Allendale.

 

Mon 9/9/2019 4:08 PM

 

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

 

Choice fell 36 cents to $226.95/cwt.

Select went down 2 cents to $201.92.

 

In negotiated cash sales in Nebraska, the USDA reported 374 head sold live at $97, with no dressed sales. In Iowa/Minnesota, 580 head were sold live at $97, and 38 head were sold dressed at $160.

 

After not getting a bounce shortly following the Tyson fire, traders were nervous as to what might be going on “behind the scenes” to keep a limit on prices. “It might just be money flow,” Oliver Sloup of Blue Line Futures said.

 

The cash market is “still pretty slow,” Virginia McGathey of McGathey Commodities said. Feeders dropped a little further today as strong supplies concern traders she said. “The fact it didn’t continue to go lower, and kind of rebounded, is a positive thing,” she said.

 

Livestock down again to open week

 

The lean hog market was sharply lower early in the day as the market followed through on Friday’s limit-down trading. However, traders seem to have eased off a bit, as the contracts finished well up from their lows.

 

Despite a late push up today, the cattle market still fell. The Hightower Report said the December cattle contract hit a new contract low early today.

 

Quiet trade sees wheat jump

 

Until Thursday, Louis Kaelin of The Andersons said he expects some quiet trade ahead of the upcoming WASDE report. There is the chance for some revised acreage, yield and production numbers as well in that report.

 

Today’s crop progress report saw an overall decline in corn. The corn crop was rated at 55% Good/Excellent, down three percentage points from last week. However, soybean condition held steady at 55% Good/Excellent.

 

Corn

 

The corn trade “couldn’t sustain that momentum” it saw early on in trade today, Louis Kaelin of The Andersons said. He said funds are holding a short position and with weather looking like it will be relatively normal for the rest of the month, which may be bearish for those looking for an early frost.

 

Guesses for Thursday’s USDA yield estimate are starting to come in, with The Hightower Report expecting the estimate to come in around 166.5 bushels per acre. That would mark a 3 bpa decrease from August’s report.

 

Soybeans

 

“With a continued warmer-than-normal forecast for the Midwest all the way out to September 22 and a lack of progress on China trade, the short-term forces for the market look bearish,” ADM Investor Services said. “Trade focus this week will be on the USDA Crop Production and Supply/Demand update.”

 

Guesses for the upcoming WASDE report are coming in, with yield estimates expected to come in at 47.1 bushels per acre, which would mark a 1.4 bpa decrease from August, The Hightower Report said.

 

Wheat

 

Australia cut their wheat production forecast by nearly 10% today, CHS Hedging said. “Australia pegged production of the country's largest rural export at 19.2 million tonnes, down from its previous estimate in June of 21.9 million tonnes,” they said.

 

John Payne, Daniel’s Trading, said he “sees nothing but downside in the Chicago contract.” He noted that while the balance sheet is “somewhat tight,” it doesn’t need to trade 60 points over French wheat and 110 points over corn. “If it hangs up here i think that is a major "tell" that rains have a rally in them on all of this money printing like we have seen in the metals,” he said.

 

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