[Mon]: With the overbought technical condition and a massive short-term production base, it will be important to see strong export news, The Hightower Report said… [Fri]: National carcass base down 81 cents… Iowa-Minnesota carcass base down $1.14… USDA reported carcass cutout values this afternoon down 19 cents… A stiff premium to the cash market is keeping pressure on the futures, The Hightower Report said. However, the market is still maintaining support from hopes of sharply increasing exports in the next few months. That sentiment was echoed by Stewart-Peterson…
Farm Commodity Newsletter/Iowa Farmer Today
Mon 10/7/2019 8:35 AM
Lean hogs - With the overbought technical condition and a massive short-term production base, it will be important to see strong export news, The Hightower Report said.
The USDA pork carcass cutout value was lower by 19 cents to $75.17 at Friday’s close, according to Dean Cluck Feedyard. Primal cuts were mixed with ribs up $1.52 and bellies down $2.93.
Vegan warns of meat substitute quality
The Cattle Report said that the interest in both Beyond Meat and Impossible Foods has exploded. The market for meat substitutes is expected to hit $2.5 billion by 2023, according to Euromonitor estimates. But John Mackey, who has been a vegan for more than 20 years, raises serious questions about the health benefits of plant-based meats because they are highly processed.
The state of California was sued by the North American Meat Institute, one of the largest U.S. trade group for meat packers and processors, which wants to block enforcement of a voter-approved measure requiring farmers to provide more space for animals being raised for food, according to Allendale.
Fri 10/4/2019 4:18 PM
In weighted average negotiated prices for barrows and gilts, USDA reported;
National carcass base down 81 cents to $49.14/cwt.
National live was up 33 cents to $38.28
Iowa-Minnesota carcass base down $1.14to $49.69
USDA reported carcass cutout values this afternoon down 19 cents at $75.17/cwt.
A stiff premium to the cash market is keeping pressure on the futures, The Hightower Report said. However, the market is still maintaining support from hopes of sharply increasing exports in the next few months.
That sentiment was echoed by Stewart-Peterson. “Assuming trade negotiations can keep moving in the right direction, we expect China to be a bigger buyer of U.S. pork products,” they said.
Hogs recover, but still close lower
The hog market saw some sharply lower trade early on the day to close lower despite a recovery of nearly a dollar by the end of the day. The close for December hogs is its lowest point since Sept. 20.
Livestock slaughter was slightly down for cattle this week, with this week’s estimated number at 639,000 head, down 9,000 from last week. Hogs were up nearly 23,000 head, coming in at 2.669 mln head.
Biofuels announcement doesn't move needle
The big headline of the day was President Trump’s “pledge to increase the use of biofuels after the first of the year,” Ami L. Heesch of CHS Hedging said.
News was otherwise quiet today in the markets, Heesch said, as traders prepared for a wet and cool weekend ahead. “The focus next week is expected to be on position squaring ahead of Thursday’s USDA Supply and Demand report at 11 a.m.,” she said.
Despite the biofuels news, corn prices still drifted lower today, Ami L. Heesch of CHS Hedging said. Traders took profits ahead of the weekend and ahead of Monday’s harvest update, while a lack of demand is still pressuring markets.
Seth Miller this is a good time to focus on marketing plans for farmers. “We have an opportunity here in the 2020 complex … and do something,” he said. “10% of production in both of those commodities need to be had.” He said both corn and soybeans might be profitable at the moment.
Seth Miller of Andersons Grain said soybeans didn’t see too much of a change in the updated Informa numbers compared to the USDA, which didn’t impact prices. Soybean yield was expected at 46.5 bushels per acre, about one lower than the USDA.
That drop in yield helped give some support to the soybean market today ahead of an expected wet weekend in the Midwest, ADM Investor Services said. “Temps could be below normal,” they said. “This could slow harvest. The potential drop in the US crop could support prices.”
Short covering ahead of the weekend was mixed in with higher technical trade, Ami L. Heesch said. The expectation remains that the U.S. and Japan trade agreement is not expected to begin until the first of the year.
“Wheat remains a follower,” ADM Investor Services said. “Trade is not looking for a lot of changes to US and World wheat numbers on their October 10 report.”