[Tues]: The Hightower Report says. “The market still feels a little bit too cheap.” The market has recovered from the oversold position bringing lows Sept. 9 but will need to see positive developments in the cash market to cheap moving up… [Mon]: Boxed beef cutout values this afternoon were weak to lower… Choice fell 26 cents… Select went down $2.03… In negotiated cash sales in Iowa/Minnesota, the USDA reported 40 head sold dressed at $160, with no live sales. In Nebraska, no negotiated cash sales were reported… Cash has been flat overall, Oliver Sloup of Blue Line Futures said. “Monday we were looking at 96-97 and it worked its way back to 99-101, and that was positive,” Sloup said. The market is back at some resistance after a slight rally, and might be at a roadblock for a range unless cash can break out, he said…

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Tue 9/17/2019 9:13 AM

 

Cattle - Dressed beef values were lower with choice down 0.26 and select down 2.03. The CME feeder index is 136.09. Pork cut-out values were up 0.45, Allendale says.

 

The Hightower Report says. “The market still feels a little bit too cheap.” The market has recovered from the oversold position bringing lows Sept. 9 but will need to see positive developments in the cash market to cheap moving up.

 

Swine disease hits Korea

 

The first case of African swine fever was confirmed near the South Korean border with North Korea with 4,000 pigs culled, says The Hightower report.

 

“China will auction of pork from its reserves this week to help fight skyrocketing pork prices”, says Joe Lardy, CHS Hedging.

As for cattle, The Hightower report says that cheap corn and cheap feeder cattle could spark active placements in the months just ahead.

 

Mon 9/16/2019 4:20 PM

 

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

 

Choice fell 26 cents to $220.62/cwt.

Select went down $2.03 to $196.57.

 

In negotiated cash sales in Iowa/Minnesota, the USDA reported 40 head sold dressed at $160, with no live sales. In Nebraska, no negotiated cash sales were reported.

 

Stewart-Peterson worried that “cheap corn and cheap feeder cattle could encourage active placements in the coming months, but at the moment, cattle markets look cheap.”

 

Cash has been flat overall, Oliver Sloup of Blue Line Futures said. “Monday we were looking at 96-97 and it worked its way back to 99-101, and that was positive,” Sloup said. The market is back at some resistance after a slight rally, and might be at a roadblock for a range unless cash can break out, he said.

 

Livestock sees mixed trade

 

Today’s cattle trade was “choppy and two-sided,” The Hightower Report said. “Talk of a short-term overbought condition plus fears of hefty supply ahead helped to pressure,” they said.

 

Meanwhile, the lean hog market fell sharply in the October contract as there are “ideas the market is overbought,” The Hightower Report said.

 

Crop progress report out

 

Today’s Crop Progress Report showed corn condition unchanged from last week, reported at 55% Good/Excellent. Soybeans saw a one point downgrade to 54% G/E, from 55% last week.

 

This morning, Mike Zuzolo of Global Commodity Analytics said reports that President Trump was invited by North Korea to Pyongyang may be a sign of progress of a trade deal with China. “We need to have North Korea and to a lesser degree Hong Kong/Taiwan issues improving in terms of foreign policy—as I continue to think that the President’s foreign and trade policies are tied-together if not one in the same,” he said.

 

Corn

 

Oliver Sloup said if the corn market can achieve consecutive closes up, he anticipates some short-covering for the December contract. With funds short, positive momentum may bring that rally, he said.

 

“Continue to price corn on rallies,” John Payne of Daniel’s Trading said. “If you are waiting for the "green light" to sell product, you will get it only when yield is more certain.”

 

Soybeans

 

“I am getting the feeling the market is somewhat leery of the yields coming worse than expected,” John Payne of Daniel’s Trading said. “Short covering is a theme as delivery is in the rear view, end users are stuck in a spot between crop years. Last year, the crop was ready to be harvested in a lot of the corn belt at this time.”

 

“The soybean market traded both sides with strength coming from the crude oil and soyoil oil markets,” Ami L. Heesch of CHS Hedging said. “Prices drew additional support from this morning’s soybean sale to China, with thoughts of easing tensions between the US and China. Pressure stemmed from lack of demand and improving weather conditions.”

 

Wheat

 

Short covering moved up the wheat market today, Ami L. Heesch of CHS Hedging said. There are also added concerns about the product coming out of Australia and Argentina due to dryness, which is adding to the support.

 

Heesch added that the northern plains is expected to see some warm and dry weather across the area, which should allow the continuation of spring wheat harvest, as “very little was done last week.”

 

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