[Weds]: Packers were looking around for any cattle available at steady prices and the pickings were limited to a few head at $107-108, according to The Cattle Report. With box prices turning higher, most cattle owners will stick to higher asking prices of $110… [Tues]: Boxed beef cutout values this afternoon were higher… Choice rose $2.51… Select went up $1.15… In negotiated cash sales in Nebraska and Iowa/Minnesota, there were no sales reported, the USDA said… “Snow is moving into the northern Plains for the weekend and harsh weather could be seen as a supportive force,” The Hightower Report said…
Farm Commodity Newsletter/Iowa Farmer Today
Wed 10/9/2019 8:35 AM
Cattle - Allendale said, “It's interesting to note that cattle futures are completely ignoring the coming blizzard in the Northern Plains. From a feedlot discussion it is understandable. South Dakota handles only 2% of our cattle feeding. North Dakota is not on the register. Even if you throw in Minnesota it's not that big at 1%. Only if the storm significantly reaches down into Nebraska can we make an argument on that front. Nebraska is currently our #2 feedlot state at 21% of the total.”
Live cattle futures ended the Tuesday session with the front months 7.5 to 35 cents lower, as deferred contracts were up 20 to 35 cents, according to Brugler Marketing & Management. Feeder cattle futures were up 15 to 35 cents in the nearby contracts. The CME Feeder Cattle Index was up 84 cents on Oct. 4 at $144.43. Wholesale boxed beef were sharply higher on Tuesday, widening the spread to $26.54. Choice boxes were up $2.51 to $213.60 and Select boxes $1.15 higher at $187.06.
Cattle prices holding steady
Packers were looking around for any cattle available at steady prices and the pickings were limited to a few head at $107-108, according to The Cattle Report. With box prices turning higher, most cattle owners will stick to higher asking prices of $110. The carcass weights fell last week reminding many that fed supplies are not backing up and as each week passes and we near the re-opening of the Tyson plant, the light late spring placements may turn the leverage and cattle prices might put on a strong rally into year end. Fast food companies are reporting excellent traffic but fine dining or the high end restaurants and reporting a slow down. It is probably not unusual for early fall to feature a slow down before holiday traffic resumes.
With the overbought condition of the market, it may not take much in the way of bearish news to spark some selling, The Hightower Report said.
Tue 10/8/2019 4:47 PM
Boxed beef cutout values this afternoon were higher on moderate demand and light offerings, USDA said.
Choice rose $2.51 to $213.60/cwt.
Select went up $1.15 to $187.06.
In negotiated cash sales in Nebraska and Iowa/Minnesota, there were no sales reported, the USDA said.
“Mixed fundamentals are keeping markets choppy and severely overbought rallies are likely limiting advances otherwise anticipated due to the weather,” Stewart-Peterson said. “Still, cattle markets have tested and held nearby support levels today though prices do look vulnerable to a correction.”
“Snow is moving into the northern Plains for the weekend and harsh weather could be seen as a supportive force,” The Hightower Report said.
Hogs rebound on expanded limits
Today’s expanded limits saw hogs rebound from limit-down trading yesterday. “While the stock market senses slow progress in the trade negotiations with China, surging pig prices in China show a clear need and the jump in pork product prices in a period of record weekly production totals suggests that China may already be an active buyer of U.S. pork,” The Hightower Report said.
Cattle’s technically overbought condition is limiting buying, leading to a slight decrease in live cattle futures today, The Hightower Report said, despite cash markets surging and providing support.
Freeze bringing higher trade
The forecasted freeze this weekend in parts of the Corn Belt is helping corn trade higher, but soybeans are dealing with trade issues, leading to mixed markets today, Ami L. Heesch of CHS Hedging said.
Kylee Phillips of The Andersons said everyone is looking at the reports as well, as it was a “positive day today.” Phillips said the slow progression through harvest may help the markets, but could hurt the crop.
Crop worries are causing higher prices in corn today, Ami L. Heesch of CHS Hedging said. However, the markets are also preparing for Thursday’s crop production and Supply and Demand reports, which is forcing traders to even up on their positions in anticipation.
In those reports, Steve Freed of ADM Investor Services said there are ideas out that that the crop may be reduced which could help rally prices. Meanwhile corn shipments are at a six-year low, he said, “starting off the new marketing year on an even worse note.”
“The market seems to be in a wait and see mode ahead of the US/Chinese trade talks later this week,” Ami L. Heesch of CHS Hedging said.
A move near $9.40 is possible for soybeans as weather and short-covering might help the market rally, however, Stewart-Peterson said there are some factors working against it. “Keeping prices in check will be harvest pressure as a generally dryer forecast after this storm system and the likelihood of increased farmers’ selling may limit upside potential,” Stewart-Peterson said.
Technical selling didn’t hurt the Chicago and Kansas City markets today. Meanwhile, there are concerns about the quality of the wheat coming in, as supplies tighten, Ami L. Heesch of CHS Hedging said.
The wheat market is not seeing much fundamental support, despite the higher trade today in Chicago. “We expect that Thursday’s Supply and Demand report will again confirm world inventories are adequate, but could show a tightening of stocks slightly,” Stewart-Peterson said.