[Tues]: Cash cattle traded between $106 and $107 last week. This was up from the $103 - $105 the prior week. In contrast, yesterday's showlist showed a 16,000 head increase over last week, Allendale reported… [Mon]: Boxed beef cutout values this afternoon were lower… Choice fell 87 cents… Select went down $1.01… In negotiated cash sales in Iowa/Minnesota, the USDA reported 40 head sold dressed at $170, with no live sales. There were no reported sales in Nebraska… “Forecasts for snow in the northern Plains later this week and into next week was not enough to provide much of a bounce today”…
Farm Commodity Newsletter/Iowa Farmer Today
Tue 10/8/2019 8:35 AM
Cattle - Cash cattle traded between $106 and $107 last week. This was up from the $103 - $105 the prior week. In contrast, yesterday's showlist showed a 16,000 head increase over last week, Allendale reported.
USDA estimated FI cattle slaughter for Monday at 116,000 head, up 2,000 head from last year but down 1,000 head from last Monday, according to Brugler Marketing & Management. Initial enthusiasm about the Japan trade deal is being tempered by the fact that the lower tariffs won't become effective until year end.
Hogs trade on expanded limits
A total of 93.352 million pounds of pork was shipped to China during August, which was 18.4% of the total shipments, according to Dean Cluck Feedyard.
Lean hogs will have expanded trading limits of $4.50 today, said Michaela White of CHS Hedging.
There was a big improvement in the cash cattle market last week, Joe Vaclavik of Standard Grain said. “We’re back to a normal-type setup,” he said.
Mon 10/7/2019 4:40 PM
Boxed beef cutout values this afternoon were lower on light demand and moderate offerings, USDA said.
Choice fell 87 cents to $211.09/cwt.
Select went down $1.01 to $185.91.
In negotiated cash sales in Iowa/Minnesota, the USDA reported 40 head sold dressed at $170, with no live sales. There were no reported sales in Nebraska
Cattle is still overbought, The Hightower Report said, which might make it easier for a long liquidation selloff to occur if anything bearish happens in the short-term.
Stewart-Peterson echoed those thoughts as well, adding that “Forecasts for snow in the northern Plains later this week and into next week was not enough to provide much of a bounce today.”
Hogs tumble on trade fears
Lean hog selling was active early today as the December contract closed at limit down levels for multiple contracts, The Hightower Report said.
Cash cattle continues to support the upcoming contracts, as December lives pushed up to their highest level since August 9 today, and closed nearly 40 cents higher.
Harvest well behind average
Mixed trade was the news today, as traders deal with uncertainty regarding trade, the upcoming Supply and Demand report and fears of a freeze in the Corn Belt forecast for the upcoming weekend, CHS Hedging’s Ami L. Heesch said.
This afternoon’s crop progress report showed 15% of the corn has been harvested as of Oct. 6, below the five-year average of 27%. Corn’s condition is rated at 56% Good/Excellent.
Soybeans are at 14% harvested (5-year average is 34%), with a rated condition of 53% Good/Excellent.
The frost concerns helped corn move higher today, as snow is expected across the Dakotas and Minnesota this week,” Ami L. Heesch of CHS Hedging said. “Position evening was noted as market participants ready themselves Thursday’s USDA crop production and S&D report.”
Keeping an eye on the weather for corn, Mike Zuzulo of Global Commodity Analytics said tomorrow is a “very crucial model-run day” as traders will look for confirmation for the weekend’s forecasts.
There are concerns a trade deal with China may not be reached this week, ADM Investor Services said. “In a week, without a deal U.S. could impose an additional 5% tariff on $250 billion of China goods that currently have a 25% tariff,” they said.
A two percentage point drop in soybean conditions was notable, John Payne of Daniel’s Trading said. “Keep that in your mind as you try to bet on yields going forward,” he said.
Weather is also dealing a blow to wheat producers, which is creating some tightening of supplies. “There is a fair amount of wheat left to harvest in the Canadian Prairies and the unharvested wheat in North Dakota and Montana is expected to be poor quality and may not ever get harvested,” Ami L. Heesch of CHS Hedging said.
Today’s run up for Chicago wheat futures was linked “in part due to good demand for storage and lower crop supplies,” ADM Investor Services said. Minnesota wheat has a big premium over Chicago and Kansas City due to weather concerns.