[Fri]: The feeder cattle market is a little more constructive than the live cattle market, and more constructive than we were planning on, as corn has started to find its feet, according to Oliver Sloup of Blue Line Futures… [Thurs]: Boxed beef cutout values this afternoon were steady… Choice fell 7 cents… Select went up 19 cents… In negotiated cash sales in Nebraska, the USDA reported 1,887 head sold dressed at $160, with no live sales. In Iowa/Minnesota, 500 head were sold live at $100, and 892 head were sold dressed at $160-162… There are ideas in the cattle market that the market is “a bit overbought” for the December live contract, The Hightower Report said. Today saw some choppy trade in that contract today…
Farm Commodity Newsletter/Iowa Farmer Today
Fri 9/20/2019 8:49 AM
Cattle - The feeder cattle market is a little more constructive than the live cattle market, and more constructive than we were planning on, as corn has started to find its feet, according to Oliver Sloup of Blue Line Futures.
Cold storage is expected to show a 624 million lb. total pork stock level for the end of August, Allendale said. The five-year average is 593 million pounds. Beef stocks, at 471 million lbs., are over the five-year average of 454. This report will be released Monday at 2:00 PM CDT.
Livestock prices holding steady
Traders are making noises about a rising livestock market. “This is a little bit of a caution flag, because we’re in a situation where the market might over-promise and under-deliver,” said Oliver Sloup of Blue Line Futures.
Expectations on today’s cattle-on-feed report are pretty friendly, according to Oliver Sloup of Blue Line Futures.
China's customs office said it had granted export licenses to eight additional Argentine meat-processing plants this week, Allendale reported. China approved seven Argentina poultry plants for exports last week, according to the Embassy of Argentina in China.
Thu 9/19/2019 4:33 PM
Boxed beef cutout values this afternoon were steady on moderate demand and offerings, USDA said.
Choice fell 7 cents to $218.17/cwt.
Select went up 19 cents to $192.16.
In negotiated cash sales in Nebraska, the USDA reported 1,887 head sold dressed at $160, with no live sales. In Iowa/Minnesota, 500 head were sold live at $100, and 892 head were sold dressed at $160-162.
With lower beef cutout values, the cattle market traded lower in the live market. Virginia McGathey of McGathey Commodities said profit-taking is limiting highs, but overall the live cattle market is staying well off its lows.
The feeder market remains firm, McGathey said, as a positive tone is entering the market ahead of tomorrow’s cattle on feed report. “There’s been good expectations there will be something positive or bullish on the horizon,” she said.
Cattle may be 'overbought'
There are ideas in the cattle market that the market is “a bit overbought” for the December live contract, The Hightower Report said. Today saw some choppy trade in that contract today.
Hopes that progress is being made with China in regards to trade is helping support the market, especially toward the end of the trading day, The Hightower Report said.
China to visit U.S. farms
This afternoon, Reuters reported that a Chinese delegation will visit American farm regions with U.S. officials next week, CHS Hedging said. This is seen as an effort to build goodwill during the current trade negotiations, according to U.S. Ag Secretary Sonny Perdue.
Janelle Brinksneader of The Andersons said today’s trade didn’t bring much new information. “The markets saw a little bit of upside in the front months,” she said, noting that trade talks continue to be important.
The corn trade was steady overall today, Virginia McGathey of McGathey Commodities said. “Futures are awaiting ethanol news right now,” she said. That might give corn a shot in the arm that is “needs,” McGathey said.
Biofuel credits fell 10% ahead of a meeting between President Trump and other senators to discuss biofuel policy, The Hightower Report said.
After falling to their lowest point in a week early today, the November contract traded higher on the day. ADM Investor Services called this a “positive technical development,” saying that strong export sales and production uncertainties are helping to support the market.
Export sales came in at 63.5 mln bushels, with year to date sales at 411 mln bushels. “Today’s (export) number, how matter how you cut it, was supportive,” Stewart-Peterson said. “This was well above the weekly pace needed to meet USDA projections. Another round of wet weather is viewed as a mixed blessing.”
Virginia McGathey of McGathey Commodities said futures are consolidating in the wheat market. She blamed profit-taking for the ease in prices today, and upcoming data is bearish which is cause for concern.
“Sluggish export sales news clashed with talk of deteriorating crops in the southern hemisphere,” ADM Investor Services said. “Weakness for the US dollar was seen as positive force.”