[Tues]: Beef prices are down over the past week and this could leave a “steady at best” for the cash market this week with last week’s cash market, according to The Hightower Report… [Mon]: Boxed beef cutout values this afternoon were firm… Choice rose 67 cents… Select went up 59 cents… In negotiated cash sales in Iowa/Minnesota, 247 head were sold live at $116.50-117, and 35 head were sold dressed at $184. There were no reported sales in Nebraska… While Friday’s high placements mark in the Cattle-on-Feed report is “bearish on face value,” Stewart-Petersons aid that it came in below estimates which eases sentiment. That helped lead to a day of triple-digit gains in the cattle markets…
Farm Commodity Newsletter/Iowa Farmer Today
Tue 11/26/2019 8:54 AM
Cattle - Allendale reported that European Union plans to allow more U.S. beef imports cleared a key hurdle when E.U. lawmakers specializing in trade backed the move, which is likely to ease transatlantic tensions. Members of the parliament's international trade committee voted 26-7, with four abstentions, for an agreement that will see U.S. farmers fill the majority of an existing 45,000-metric ton allotment.
Beef prices are down over the past week and this could leave a “steady at best” for the cash market this week with last week’s cash market, according to The Hightower Report.
USDA shedding light on hog sales
USDA said commodity exporters must disclose sales of hog carcasses, giving officials and traders more insight into a surge of Chinese pork buying, according to Allendale. "These changes will help to provide transparency and eliminate confusion for the industry," said meat packer Tyson Foods Inc.
The cattle market was up yesterday following a Cattle on Feed report that was considered to be slightly friendly, Joe Vaclavik of Standard Grain said.
Mon 11/25/2019 4:37 PM
Boxed beef cutout values this afternoon were firm on moderate demand and moderate offerings, USDA said.
Choice rose 67 cents to $233.24/cwt.
Select went up 59 cents to $211.91.
In negotiated cash sales in Iowa/Minnesota, 247 head were sold live at $116.50-117, and 35 head were sold dressed at $184. There were no reported sales in Nebraska.
After opening slightly higher after Friday’s report, sharply higher trade pushed the market to its highest level since April, as futures had already priced in a bearish report, The Hightower Report said.
“The continued advance in open interest suggests that fund traders remain active buyers,” The Hightower Report said.
Cattle higher after better-than-expected report
While Friday’s high placements mark in the Cattle-on-Feed report is “bearish on face value,” Stewart-Petersons aid that it came in below estimates which eases sentiment. That helped lead to a day of triple-digit gains in the cattle markets.
According to Goldman Sachs, global pork production is expected to fall 16% in 2020 due to African swine fever and other factors, Stewart-Peterson said. “If the U.S. and China can work out a Phase 1 deal, the U.S. should export more pork and prices should rally,” Stewart-Peterson said.
Wheat jumps, but other grains don't follow
Despite strength from wheat today, the row crops struggled to open a short week, Ami L. Heesch of CHS Hedging said. Conditions are expected to be less favorable across the U.S. this week, and Heesch expects more choppy trade “as folks get their positions aligned ahead of the Thanksgiving Holiday.”
In today’s crop progress report, corn harvested in the U.S. was marked at 84% complete, an increase of eight points from last week, but is still lagging behind the five-year average of 96%. Soybeans are back near average with a 94% harvested mark, only three points behind the five-year average.
Today was originally scheduled to be the final crop progress report of the year, but with the excessive delays this year, USDA will be continuing them for the time being.
Despite the initial boost in conjunction with wheat, corn failed to hold on to its higher levels on the day, Ami L. Heesch of CHS Hedging said. Hopes for additional export demand is bringing some optimism to the U.S. as Brazil has seen “robust” sales for the past few weeks, she said.
Corn is also finding a little support from large managed funds “rolling out” of the December contract before first-notice day, ADM Investor Services said, in addition to a strong U.S. cash basis.
No trade deal continues to be the thorn in the side of the soybean market, Ami L. Heesch of CHS Hedging said. “Favorable weather conditions in SA this week provided additional pressure on the soybean market.”
“With South American forecasts being relatively favorable, it’s difficult for the bean market to gain traction and potentially dealing with another South American supply,” Stewart-Peterson said. “The soybean market was also being supported by a more improved tone between U.S./Chinese trade negotiations that a limited agreement could be reached in the near term, but with the on-again-off-again mentality of the newswire, the market is going to truly be in a show-me-first mentality.”
With snow expected across the U.S. and other adverse conditions around the world, wheat saw some sizable gains today, Ami L. Heesch of CHS Hedging said. She said wheat prices are also stronger overall in the world, which is supportive to the market.
A possible tight Chicago and Kansas City delivery situation gave support to the wheat market today, ADM Investor Services said.