[Fri]: With a big jump in average weights this week and some further weakness in the beef market, the cattle market seems a bit too overbought to attract new buying, according to The Hightower Report… [Thurs]: Boxed beef cutout values this afternoon were lower on Choice and higher on Select… Choice was 91 cents lower… Select was up $1.31… In negotiated cash sales in Nebraska, there were no reportable sales, the USDA said. In Iowa-Minnesota, there was also no reportable trade… Cattle markets Thursday were hanging tough despite a few negative factors. “Cattle futures prices are overbought, but cash cattle trade early this week has been above last week, but beef prices have been choppy,” Stewart-Peterson said. “The ability of cattle markets to stay supported despite stock market volatility is also very impressive”…

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Fri 10/4/2019 9:18 AM

 

Cattle - Live cattle futures closed up 15 to 75 cents yesterday, according to Brugler Marketing and Management.

 

With a big jump in average weights this week and some further weakness in the beef market, the cattle market seems a bit too overbought to attract new buying, according to The Hightower Report.

 

Markets stay mixed Friday morning

 

The cattle markets finished slightly higher yesterday while the hog markets had a mixed to mostly negative session, according to Stewart-Peterson.

 

Export sales for beef and pork were mixed last week with beef sales at 12,491 metric tons and pork sales totaled 30,974 metric tons, according to Allendale.

 

Thu 10/3/2019 4:26 PM

 

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

 

Choice was 91 cents lower to $212.06/cwt.

Select was up $1.31 to $187.21.

 

In negotiated cash sales in Nebraska, there were no reportable sales, the USDA said. In Iowa-Minnesota, there was also no reportable trade.

 

“December cattle closed higher on the day and managed to experience the highest close since Aug. 9 which was right before the slaughter plant fire,” the Hightower Report said. “Talk of the overbought condition of the market and sluggish beef price action helped to spark some selling into the mid-day but minor support held.”

 

Recent beef exports were down, but overall this year was running ahead of last year’s pace. “U.S. beef export sales for the week ending September 26 came in at 12,500 tonnes, compared with the average of the previous four weeks of 17,925,” the Hightower Report said. “Cumulative sales for 2019 have reached 783,900 tonnes, up 1.3% from last year's pace.”

 

Cattle market action 'impressive'

 

Cattle markets Thursday were hanging tough despite a few negative factors. “Cattle futures prices are overbought, but cash cattle trade early this week has been above last week, but beef prices have been choppy,” Stewart-Peterson said. “The ability of cattle markets to stay supported despite stock market volatility is also very impressive.”

 

“Slaughter this week is running sharply ahead of last week, which is likely keeping the pork product prices under pressure,” Stewart-Peterson said. “Weights are also up from last week and from a year ago. The large premium of Dec hogs to the cash index versus a normal seasonal discount is the main factor currently keeping a lid on rallies.”

 

Markets looking for a direction

 

Markets were largely quiet, awaiting more information. “It was a very quiet day in the markets,” Ami Heesch, with CHS Hedging, said. “Weather conditions remain in the way of harvest activity in many areas. Look for a pretty quiet day again tomorrow as the market awaits the USDA crop progress report come Monday afternoon.

 

“China purchased 252,000 tons of beans this morning from the U.S., helping to stabilize prices after some early pressure,” Stewart-Peterson said. “Most of the recent purchases from China have been from private buyers and have come out of the U.S. Gulf instead of the Pacific Northwest. This may negatively impact cash basis in the Dakotas.”

 

Corn

 

“Ethanol production for the week ending September 27 was down 5.62% versus last year, adding to the negative tone,” Stewart-Peterson said. “Heavy rains continue to delay harvest, but the 6-10 day forecast are showing below normal precipitation and mixed temperatures for the second week of October.”

 

“The corn market trade action was uneventful on ideas that many in the trade are sitting low ahead of Monday’s updated harvest report,” Ami Heesch, with CHS Hedging, said. “Last week’s crop progress was at 11% complete with only 43% of the crop mature and ready to be harvested.”

 

Soybeans

 

"The soybean market was on the defensive for the second day in a row on technical selling and weakness in the meal market,” Ami Heesch, with CHS Hedging, said. “Losses were limited from a decent weekly export sales number. October soy oil prices turned higher after it held above its 50-Day moving average of 28.85 cents per pound.”

 

“Soybeans traded both sides of Wednesday close,” Steve Freed, with ADM Investor Services, said. “Better than expected weekly US soybean export sales and cold temps across the northwest US Midwest helped prices. Uncertainty concerning USDA October 10 report, mostly favorable South America weather and approaching US harvest offers resistance.”

 

Wheat

 

“Another day in the red for the wheat market,” Ami Heesch, with CHS Hedging, said. “Mpls Dec started the run back on Sept. 3 with a low of $4.86 ½. It ran to a high of $5.59 by Sept. 26 and it closed today at $5.29 ½. Harvest progress this week was said to be minimal with rain, cold and snow moving around the Northern Plains and the Canadian Prairies this week.”

 

“Market tested the lows recently after USDA predicted record World supplies,” Steve Freed, with ADM Investor Services, said. "Dryness in Australia and concern over quality of Canada 2019 crop has helped prices trade back to the midpoint. Wheat needs a crop problem in 2020 to push over resistance.

 

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