[Mon]: Large margins at the beef plants are likely to be narrowed… [Fri]: Producers “have the incentive to feed cattle to higher weights,” The Hightower Report said, as weights are about as high as in December 2016… The cattle markets hit a contract high today, but selling after that point may be a technical sign “that a major technical top is in place” … "The supply fundamentals are shifting to a more negative tone and beef prices are beginning to slip," The Hightower Report said. However, the funds are remaining aggressive buyers and cash cattle remains in an uptrend, they noted… 

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Mon 12/2/2019 9:15 AM

 

Cattle - A late Thanksgiving like this year leads to an abbreviated period between Thanksgiving and Christmas, the Cattle Report said. It compresses purchases into a smaller time frame and with the addition of the Tyson Kansas plant, several impacts to the market can be possible. Large margins at the beef plants are likely to be narrowed.

 

Open interest in the cattle market has surged along with the price in recent weeks, according to The Hightower Report. USDA estimated cattle slaughter came in at 115,000 head Friday and 98,000 head for Saturday.

 

Livestock markets heats up after holiday

 

China's Securities Times newspaper reported that Fang Xinghai, vice chairman of the China Securities Regulatory Commission (CSRC), said China will launch a new pig futures contract as soon as possible given the importance of pork to the Chinese diet. The report did not give a target date for launching the futures.

 

Brugler Marketing said live cattle futures fell on Friday by 22 to 50 cents, but still managed to gain 2.13% on the week. Feeder cattle futures followed Thanksgiving’s break with losses in the nearby contracts, futures finished $0.65 to $1.50 on the day, but had a $3.00 gain over the week.

 

Fri 11/29/2019 2:31 PM

 

Daily cash prices had not been posted as of 2 p.m. by the USDA.

 

Producers “have the incentive to feed cattle to higher weights,” The Hightower Report said, as weights are about as high as in December 2016.

 

“The strength in cash is being supportive on the December contract,” Stewart-Peterson said. A projected snowstorm in the northern Plains is also bringing in some support from buyers as retail values are staying choppy.

 

Cattle hits contract high

 

The cattle markets hit a contract high today, but selling after that point may be a technical sign “that a major technical top is in place,” The Hightower Report said.

 

Slaughter this week was limited by the shortened holiday week, but was sharply down from last year’s market. Cattle posted estimated marks of 556,000 head, down from 641,000 head last week. Lean hogs had an estimated 2.343 mln head slaughtered with 2.530 mln head this time last year.

 

Markets slow on Black Friday

 

Farm machinery makers John Deere are working on private financing in Brazil after slumping sales have put the public financing the company is receiving in danger of running out next year, Reuters reported

 

Price action today was affected by low-volume trade as a shortened trade day after Thanksgiving.

 

Corn

 

Corn moved higher today on some seasonal action as ADM Investor Services said cash sales may slow. “Futures may be oversold as managed funds added to weakness linked to slow US export demand,” he said.

 

“With ethanol production continuing to ramp up, the argument may be perceiving that corn demand may be improving,” Stewart-Peterson said. “With this morning’s push, prices are showing some technical improvement, which could bring some short-covering and an oversold market.”

 

Soybeans

 

Joe Lardy of CHS Hedging said that while South America had some dry spots, “in general, it’s a non-event.” He did notice that Argentina’s forecast is turning drier however.

 

Sentiment remains negative as traders look at U.S./China trade issues. If prices today were able to make it off the lows posted this morning, Stewart-Peterson said it could be a key in changing the direction.

 

Wheat

 

Chicago wheat was the stellar performer for the week gaining 23.25 cents,” Joe Lardy of CHS Hedging said. “Thin trade coupled with month end allowed the market to trip stops and make a strong technical push higher.”

 

Wheat benefited today for from some low holiday trade with “limited interest in selling,” ADM Investor Services said. “Some link the buying to talk of lower Russia supplies, lower South Hemisphere supplies, some concern about EU plantings and following corn in a historical rally in December,” they said.

 

Fri 11/29/2019 9:13 AM

 

Allendale noted lawmakers in the EU approved an increase in U.S. beef imports on Thursday. That could likely ease tensions between the two sides, according to Reuters.

 

"The supply fundamentals are shifting to a more negative tone and beef prices are beginning to slip," The Hightower Report said. However, the funds are remaining aggressive buyers and cash cattle remains in an uptrend, they noted.

 

Cattle prices appear vulnerable

 

Declining beef prices, higher weights and placements being higher make the cattle market possibly vulnerable to long liquidation selling ahead, The Hightower Report said. "However funds are still buying and there is no technical sign of a peak."

 

The lean hog short term cash news remains bearish, but "supply is peaking, exports should improve soon and traders remain optimistic on demand," The Hightower Report said.

 

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