[Fri]: Oliver Sloup of Blue Line Futures said, lean hogs have been “bipolar.” “If we finish the week at the low end of the range I wouldn’t be surprised to see $64.20 tested,” he said… [Thurs]: National carcass base down 25 cents… Iowa-Minnesota carcass base up 19 cents… USDA reported carcass cutout values this afternoon rose 91 cents… “We know (China) has big needs and at some point it’s going to have to come to the United States,” Virginia McGathey of McGathey Commodities said… Sluggish export sales, a weak cash market trend and lower pork cutout values are to blame for moderately lower trade today early on, The Hightower Report said…
Farm Commodity Newsletter/Iowa Farmer Today
Fri 9/20/2019 8:49 AM
Lean hogs - Oliver Sloup of Blue Line Futures said, lean hogs have been “bipolar.” “If we finish the week at the low end of the range I wouldn’t be surprised to see $64.20 tested,” he said.
The USDA pork carcass cutout value FOB plant was up 91 cents from yesterday at $69.02, according to Brugler Marketing & Managment. The national average base hog value was down 25 cents at $44.48 on Thursday. Estimated week to date FI hog slaughter was 1.951 million head through Thursday.
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
In weighted average negotiated prices for barrows and gilts, USDA reported;
National carcass base down 25 cents to $44.48/cwt.
National live was down 72 cents, moving to $36.13
Iowa-Minnesota carcass base up 19 cents to $45.13
USDA reported carcass cutout values this afternoon rose 91 cents at $69.02/cwt.
“We know (China) has big needs and at some point it’s going to have to come to the United States,” Virginia McGathey of McGathey Commodities said. She said a few limit moves is staying in a large range, but ultimately consolidating. “We are going to certainly need a lot more news to keep this engine moving higher.”
Sluggish export sales, a weak cash market trend and lower pork cutout values are to blame for moderately lower trade today early on, The Hightower Report 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.”