[Mon]: Friday’s weak technical action leaves the market with continued concerns about hefty supply of cattle, The Hightower Report said. They are also concerned about the possibility of increasing supply going into next year which may impact the market… [Fri]: Boxed beef cutout values this afternoon were steady… Choice rose 91 cents… Select was unchanged… In negotiated cash sales in Nebraska, the USDA reported 1,605 head sold dressed at $155-160, with 1,478 head sold dressed at $100-101. In Iowa/Minnesota, 1,250 head were sold live at $100-102, and 828 head were sold dressed at $157-160… Cattle weight data was “supportive” this week as steer weights were unchanged, and weights are under last year’s mark, The Hightower Report said…

                                                                                                            

Farm Commodity Newsletter/Iowa Farmer Today

 

Mon 9/16/2019 9:07 AM

 

Cattle - Traders are holding a record net short position, The Hightower Report said. The market is overbought, but “the action Friday is seen as a bit bearish,” they said.

 

“Weight data last week was supportive with steer weights unchanged” last week, The Hightower Report said, during a time where weights seasonally go up. Weights are still under last year’s number and under the 5-year average.

 

Friday action leaves cattle possibly bearish

 

More pigs have been culled in Japan’s Saitama Prefecture, north of Tokyo, due to African swine fever, Allendale said.

 

Friday’s weak technical action leaves the market with continued concerns about hefty supply of cattle, The Hightower Report said. They are also concerned about the possibility of increasing supply going into next year which may impact the market.

 

Fri 9/13/2019 4:18 PM

 

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

 

Choice rose 91 cents to $220.88/cwt.

Select was unchanged and sits at $198.60.

 

In negotiated cash sales in Nebraska, the USDA reported 1,605 head sold dressed at $155-160, with 1,478 head sold dressed at $100-101. In Iowa/Minnesota, 1,250 head were sold live at $100-102, and 828 head were sold dressed at $157-160.

 

It was a lower day for cattle, overall, as there is no new buying interest in the market, The Hightower Report said. This halted a three-day surge for the market.

 

Cattle weight data was “supportive” this week as steer weights were unchanged, and weights are under last year’s mark, The Hightower Report said.

 

Lean hogs surging, cattle steadying

 

Lean hogs continued to trade limit-up in most contracts today, as China announced there would be no additional tariffs on the commodity for the time being, Kathleen Murphy of CHS Hedging said.

 

Sluggish trade is steading the live cattle market, Virginia McGathey of McGathey Commodities said. “We are a far cry from where we were last Friday where had the big push to the downside,” but she believes the downside is solidly in right now.

 

China trade news boosts beans

 

With China announcing there would be no new tariffs put on soybeans, strength continued in the grain markets, Kathleen Murphy of CHS Hedging said.

 

Meanwhile, President Trump announced he will delay a 5% tariff increase by two weeks (to Oct. 15) this week, as both countries show signs of goodwill, CHS Hedging said.

 

Today was the last day for September contracts in the grains.

 

Corn

 

The corn market held onto support found from a possible ethanol demand boost, Kathleen Murphy of CHS Hedging said. “According to an article on Bloomberg, President Trump has ‘tentatively’ agreed with Midwest Senators on a plan to help boost ethanol production,” she said. “However, the deal is not yet set and may change when Trump meets with representatives from oil producing states.”

 

Kylee Phillips of The Andersons said corn is seeing benefits from dryness in South America. However, she warned that the market may react differently if yields on the early corn harvest are higher than expected.

 

Soybeans

 

Soybeans are still riding high as the markets embrace the trade war and yield headlines. “. A private exporter’s sales report this morning along with news of a possible “interim deal” gave the markets some positive news to trade off of,” Kathleen Murphy of CHS Hedging said.

 

“China is buying and that is rallying the market,” Virginia McGathey of McGathey Commodities said. “Right now the market is looking very strong.” There could be profit taking coming up, she warned, but things look strong going into harvest.

 

Wheat

 

Wheat’s recent rally comes on technical indicators, Virginia McGathey of McGathey Commodities said. “All the data around wheat is kind of bearish, so this rally is technical more than anything else,” she said.

 

The wheat markets endured some profit taking today, as supplies continue to grow, CHS Hedging said. However, wheat stayed mostly untouched by yesterday’s WASDE report.

 

iowafarmertoday.com