[Thurs]: The Hightower Report says that the market seems to have strong enough consumer demand and strong enough packer margins to see a further advance over the near-term… [Weds]: Boxed beef cutout values this afternoon were lower… Choice fell $1.53… Select went down $1.94… In negotiated cash sales in Nebraska, the USDA reported 12 head sold dressed at $160, with no live sales. In Iowa/Minnesota, 51 head were sold dressed at $160-162, with no live sales… Cattle trade is following much of the same thoughts as yesterday: producers are current with marketings and august placements may be lower, The Hightower Report said. The led to a slightly higher day in the cattle market…
Farm Commodity Newsletter/Iowa Farmer Today
Thu 9/19/2019 9:05 AM
Cattle - The Hightower Report says that the market seems to have strong enough consumer demand and strong enough packer margins to see a further advance over the near-term.
Producers are current with marketings and cattle on-feed supply as of Sept. 1 is likely below the previous year for the first time since December, 2016. The Hightower Report says it looks like there will be buying opportunities.
China turning to Argentina for pork
Reuters reported that China's customs office said on Thursday it granted export licences to some Argentine meat-processing plants, as the Asian country looks to plug a supply gap after an African swine fever outbreak decimated China's pig herds.
With trade negotiations restarting this week and a major need from China for imports, The Hightower Report sees “exports picking up steam” and pork prices on the rise.”
Back in July, Tim Horton's restaurants said they would offer Beyond Meat (alt-meat) products in its breakfast lineup in 4,000 restaurants in Canada and the U.S. Yesterday afternoon, the chain noted this promotion had ended at all locations except in Ontario and British Columbia, Allendale says. “It remains to be seen if the promotion will return.”
Wed 9/18/2019 4:35 PM
Boxed beef cutout values this afternoon were lower on light demand and moderate offerings, USDA said.
Choice fell $1.53 to $218.24/cwt.
Select went down $1.94 to $191.97.
In negotiated cash sales in Nebraska, the USDA reported 12 head sold dressed at $160, with no live sales. In Iowa/Minnesota, 51 head were sold dressed at $160-162, with no live sales.
“Seasonal beef demand is relatively soft right now,” Virginia McGathey of McGathey Commodities said, despite the recent rally. However, the gap made from the Tyson fire hasn’t been filled, which is concerning to McGathey.
Meanwhile the cash trade in feeders is improving, which firmed up the market. “We are going to look for more increased trade tomorrow or Friday,” Virginia McGathey said. She noted a late rally in the trade which may be a sign of things to come from traders.
More ASF in South Korea
South Korea reported its second case of African Swine fever, as more hogs are expected to be culled. “The government raised its warning to the highest level and put a 48 hour lockdown on all farm across the country,” ADM Investor Services said.
Cattle trade is following much of the same thoughts as yesterday: producers are current with marketings and august placements may be lower, The Hightower Report said. The led to a slightly higher day in the cattle market.
Fed cuts interest rates
As expected this morning, the Fed cut interest rates 25 basis points after global economic concerns, Ami L. Heesch of CHS Hedging said. One more cut is expected by the end of 2019.
Greg Johnson of The Andersons said there is no sign of frost through the first week of October according to the latest forecasts, adding pressure to some of the trade today.
Borrowed strength from the wheat market and short covering helped the corn market today, but Ami L. Heesch of CHS Hedging said gains were limited due to the non-threatening weather across the Midwest. “This year’s crop might just make it to maturity if the big, hard freeze stays away for a while longer,” she said.
Greg Johnson of The Andersons said slow economic activity globally, with a strong U.S. dollar and trade wars “all contributes to a lack of demand for U.S. ag products,” which offsets low yield reports. “The market feels comfortable with lower yield estimates we are starting to hear,” he said.
The weather was a factor in the soybean trade today, Ami L. Heesch of CHS Hedging said. There is also “uncertainty about whether the U.S. will see future soybean purchases from China,” she said.
Meanwhile, meal is continuing to be a “drag on the complex” after the South Korea African Swine fever news, ADM Investor Services said.
The wheat trade was supported by “strong calendar spreads as well as a flurry of export business,” ADM Investor Services said.
Wheat is seeing an increase in demand, Ami L. Heesch of CHS Hedging said. “Prices saw additional strength from technical buying and a bout of short covering,” she said. “Spring wheat harvest began again this week, with reports of disappointing quality.”