[Weds]: Ideas that the premium structure will lead to much higher cattle weights plus talk of big placement for October and maybe November are factors that could help the market forge a near-term top, according to The Hightower Report… [Tues]: Boxed beef cutout values higher on Choice and weak on Select… Choice rose $1.24… Select down $02.81… There was no reported negotiated cash sales in Nebraska or Iowa/Minnesota, according to the USDA reports. There is still no sign of a top and beef prices are still moving higher, according to The Hightower Report…
Farm Commodity Newsletter/Iowa Farmer Today
Wed 11/6/2019 8:43 AM
Cattle - The USDA estimated cattle slaughter is ahead of last week’s pace, with a running weekly total of 234,000 head for Tuesday, Alan Brugler reported.
Ideas that the premium structure will lead to much higher cattle weights plus talk of big placement for October and maybe November are factors that could help the market forge a near-term top, according to The Hightower Report.
China resumes meat imports
China will resume imports of Canadian beef and pork, Prime Minister Justin Trudeau said, four months after China blocked shipments during a diplomatic feud between the two countries. "Good news for Canadian farmers today: Canadian pork and beef exports to China will resume," Trudeau tweeted.
Seven Brazilian hog plants in Santa Catarina have been approved by China for pork exports, Brugler Marketing & Management reported.
Tue 11/5/2019 4:37 PM
Boxed beef cutout values higher on Choice and weak on Select on light to moderate demand and offerings, USDA report.
Choice rose $1.24 to $236.05/cwt
Select down $02.81 to .56 to $209.82/cwt
There was no reported negotiated cash sales in Nebraska or Iowa/Minnesota, according to the USDA reports.
There is still no sign of a top and beef prices are still moving higher, according to The Hightower Report.
The sharp increase in futures prices brought renewed interest from cattle owners to forward sell cattle and lock in profits, according to The Cattle Report.
Chinese pork prices under pressure
Live cattle, as well as feeder cattle futures, are mixed so far on Tuesday, said Alan Brugler. Both are seeing gains farther out, and decreases nearby.
Stewart-Peterson reported that China’s spot pig price is still drifting lower, likely under pressure from stifled demand.
Traders wary on limited news
Another day without any Chinese purchases put the markets on the defensive most of the day as other news was too limited to motivate any buying, according to Jody Lawrence of Strategic Trading Advisors.
It was a choppy day in the grain markets amid position squaring ahead of the release of the USDA production report on Friday, said Ami L. Heesch of CHS Hedging. Plans are to have a done deal on Phase I of the trade war situation by the end of November.
Corn prices sag on mostly favorable harvest weather across much of the Midwest for this and next week, Ami L. Heesch of CHS Hedging reported. Moisture is still an issue, with corn dryers humming away at their max. Market awaits fresh supportive news on the US-Chinese situation.
There is much debate as to whether Friday’s Supply and Demand report will show higher corn production or lower corn production, according to Stewart-Peterson. The average market estimate is indicating that the USDA will drop in national corn yield, but history suggests corn yield generally increases on the November report during late-harvest years.
This week some have lowered their estimate of Argentina soybean crop due to dryness, ADM Investor Services reported. Argentina export tax policy could also be key to their final exports.
The soybean market has been unable to respond to more positive headlines regarding the perspective of Phase 1 China trade deal, Stewart-Peterson said.
ADM Investor Services said that talk of higher emerging market economies may be helping wheat. Word that Egypt bought French and Russia wheat in their tender could offer resistance to prices.
Pressure on wheat prices stems from strength in the U.S. dollar, plentiful supplies and stiff competition from other world players, according to Ami L. Heesch of CHS Hedging.