[Thurs]: … Despite no reported sales in the Fed Cattle Exchange yesterday, there was “light trade” at $124 yesterday, Allendale said. “Bids of $123 from packers today clearly point to a steady trade this week at $124”… The cash market’s uptrend “may be running out of steam” in the cattle markets as beef prices are pulling back, The Hightower Report said… [Weds]: Boxed beef cutout values this afternoon were steady to weak… Choice fell 6 cents… Select went down 29 cents… In negotiated cash sales in Iowa/Minnesota, 162 head were sold live at $123-125, and no dressed sales. There were no reported sales in Nebraska… Despite mixed closes today, packer margins are starting to come down over the past few weeks, Stewart-Peterson said, which may have a negative impact on demand, and therefore the cash cattle market… 

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Thu 1/9/2020 8:31 AM

 

Cattle - Despite no reported sales in the Fed Cattle Exchange yesterday, there was “light trade” at $124 yesterday, Allendale said. “Bids of $123 from packers today clearly point to a steady trade this week at $124.”

 

If the market can move outside of its range from Monday, it will set the next short-term direction, The Hightower Report said. “Packer margins are tightening, which could ease packer demand for live inventory,” they said, adding that supply flow should be good, which limits upside.

 

Cash cattle slowing up

 

The cash market’s uptrend “may be running out of steam” in the cattle markets as beef prices are pulling back, The Hightower Report said. “Cattle placements into feedlots have increased from a year ago over the past several months, and with cheap corn and good weather, beef production looks ample over the near term.”

 

Meanwhile, U.S. pork is on a record-setting production pace as average weights are up to an all-time high, “which suggests futher production difficulties ahead,” The Hightower Report said.

 

Wed 1/8/2020 4:36 PM

 

Boxed beef cutout values this afternoon were steady to weak on light to moderate demand and moderate to heavy offerings, USDA said.

 

Choice fell 6 cents to $209.50/cwt.

Select went down 29 cents to $206.53.

 

In negotiated cash sales in Iowa/Minnesota, 162 head were sold live at $123-125, and no dressed sales. There were no reported sales in Nebraska.

 

Technical action has been “quiet” overall today, Stewart-Peterson said, remarking on both the live and feeder contracts. “Jan feeders made their second inside session in a row and closed just off the highs while the Mar contract tested and failed to break through nearby resistance,” they said.

 

“It was an inside trading day,” The Hightower Report said. Feeder cattle helped support the market with a jump in some contracts, they said, but exports were lower for the month of November at 244.5 mln pounds, compared to last year’s mark of 265.9 mln.

 

Hog exports expected to pick up

 

Despite mixed closes today, packer margins are starting to come down over the past few weeks, Stewart-Peterson said, which may have a negative impact on demand, and therefore the cash cattle market.

 

For the lean hogs, a trade deal being signed next Wednesday means export sales for the upcoming weeks will be very important, Stewart-Peterson said. U.S. pork exports in November hit a record high, despite slow sales to Mexico they said.

 

Grains missing volume

 

Volume is staying low in the markets through the mid-week mark, mainly due to the upcoming USDA report and tensions with the Middle East, ADM Investor Services said.

 

With a winter storm hitting Washington, weekly export sales reports are being delayed until Friday, Ami L. Heesch of CHS Hedging said.

 

Corn

 

Beneficial rains are hitting South America ahead of Friday’s report, Ami L. Heesch of CHS Hedging said. “Focus will be on the weather come April when Brazil’s 2nd corn crop is in its prime for production,” she said.

 

Stewart-Peterson said that Friday will likely show “adequate carryout” which is keeping new crop prices in check, but the market may be “at worst consolidating.” They added: “The longer-term trend, however, for new crop futures on December corn charts remains intact and that is still down.”

 

Soybeans

 

With thoughts that Iran might stand down after President Trump’s address, soybeans rallied after hitting a session low, ADM Investor Services said. However, normal rains are coming back into the forecast for South America’s two-week forecast.

 

“We expect that Friday’s reports, in a nutshell, will confirm adequate U.S. and world carryout,” Stewart-Peterson said. “Therefore, without weather, the market may struggle.”

 

Wheat

 

Like soybeans, wheat futures turned higher today after the president’s address, ADM Investor Services said. Export sales are estimated to come in between 200-550 tonnes, which would compare to last week’s 313 tonnes. However, index funds are “expected to buy 14,000 KC wheat contracts and sell 6,000 Chicago wheat contracts” in a rebalancing period, which could help close the gap between the two.

 

Despite the U.S. being “snubbed” in the most recent Egyptian tender, and no U.S. spring wheat is in the mix for Japan’s weekly food tender, Ami L. Heesch of CHS Hedging said. “Prices drew strength from easing tension in the Middle East,” she added.

 

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