[Fri]: The potential for strong exports in the months ahead should provide solid underlying support to the hog market, according to The Hightower Report. The difference between the futures and cash markets is an issue and while export and pork prices have been supportive, hogs may not go too much higher in the near term, according to Stewart-Peterson… [Thurs]: National carcass base was 16 cents lower… Iowa-Minnesota carcass base fell 39 cents… USDA reported carcass cutout values this afternoon were up $1.24… “December hogs closed moderately lower, but well above the early lows,” the Hightower Report said. “The early selling drove the market lower and pushed the market down to the lowest level since September 23. The large drop in pork prices and just slightly elevated pork export sales with only minor purchases by China helped to pressure the market.” “U.S. pork export sales for the week ending September 26 came in at 30,900 tonnes, compared with the average of the previous four weeks of 21,500”… 

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Fri 10/4/2019 9:18 AM

 

Lean hogs - The potential for strong exports in the months ahead should provide solid underlying support to the hog market, according to The Hightower Report.

 

The difference between the futures and cash markets is an issue and while export and pork prices have been supportive, hogs may not go too much higher in the near term, according to Stewart-Peterson.

 

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

 

In weighted average negotiated prices for barrows and gilts, USDA reported;

 

National carcass base was 16 cents lower to $49.99/cwt.

National live was down 51 cents to $37.56

Iowa-Minnesota carcass base fell 39 cents to $50.86

 

USDA reported carcass cutout values this afternoon were up $1.24 to $75.36/cwt.

 

“December hogs closed moderately lower, but well above the early lows,” the Hightower Report said. “The early selling drove the market lower and pushed the market down to the lowest level since September 23. The large drop in pork prices and just slightly elevated pork export sales with only minor purchases by China helped to pressure the market.”

 

“U.S. pork export sales for the week ending September 26 came in at 30,900 tonnes, compared with the average of the previous four weeks of 21,500,” the Hightower Report said. “Cumulative sales for 2019 have reached 1,185,000 tonnes, up 16.2% from last year's pace. Mexico and South Korea were the largest buyers and China bought just 1,350 tonnes.”

 

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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