[Thurs]: Choice beef pricing has fallen in 12 of the past 14 trading sessions. “This has certainly been an issue impacting cash cattle pricing,” Allendale said early this morning. Cash cattle fell from $124 in third week of January to $121 last week. Yesterday's trades were noted at $119 and $120… [Weds]: Boxed beef cutout values lower on Choice and higher on Select… Choice down $1.52… Select up 77 cents… In negotiated cash sales in Nebraska, the USDA reported 2,757 head sold live at $119. Dressed sales of 350 head at $190 were reported. In Iowa/Minnesota, live sales of 254 were reported at $119.00. Dressed sales of 550 head were reported at $190.22… The fed cattle market remains extremely oversold, says The Hightower Report. “There is some hope that the coronavirus will slow the spreading and eventually be eliminated by April,” they said…

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Thu 2/13/2020 9:18 AM

 

Cattle - The reversal and higher close for April cattle, after hitting a support low yesterday, is a technical positive, The Hightower Report said. April cattle traded down to the lowest price it has been since Sept. 25, before a higher close yesterday, The Report said.

 

Choice beef pricing has fallen in 12 of the past 14 trading sessions. “This has certainly been an issue impacting cash cattle pricing,” Allendale said early this morning. Cash cattle fell from $124 in third week of January to $121 last week. Yesterday's trades were noted at $119 and $120.

 

As for weather affecting production, Dodge City will see high temperatures of 30 and lows of 16 today, but temperatures will rise come the weekend, Allendale said. That area will see a rebound back to 62 and 35 respectively on Sunday. “At this time, it does not appear that the cold event will be cold enough and it won't last long enough to impact cattle,” Allendale said.

 

China impact on livestock market strong

 

Coronavirus news turned negative overnight, which could limit support to prices for cattle, said The Hightower Report. But there is hope the virus will slow in spreading and eventually be eliminated by April, The Report said.

 

Bunge CEO, Gregory Heckman, said it's too early to tell what impact the coronavirus will have agriculture. Also Heckman noted that African swine fever, the other major disease to hit China may have wiped out 40% of their hog herd, Allendale said today.

 

Traders will monitor exports closely today, The Hightower Report said. “Pork values need to rally soon or the bears will remain in control.”

 

Wed 2/12/2020 4:30 PM

 

Boxed beef cutout values lower on Choice and higher on Select on light to moderate demand and moderate offerings.

 

Choice down $1.52 to $206.31/cwt.

Select up 77 cents to $205.30/cwt.

 

In negotiated cash sales in Nebraska, the USDA reported 2,757 head sold live at $119. Dressed sales of 350 head at $190 were reported. In Iowa/Minnesota, live sales of 254 were reported at $119.00. Dressed sales of 550 head were reported at $190.22.

 

April live cattle prices finished up 67 cents, closing at $117.85. March feeder cattle closed up 37 cents to $135.05. “The market remains technically oversold and vulnerable to a bounce, and a hook reversal may help turn the trend back up,” Hightower says.

 

Choice beef values were lower late Tuesday, and were down again this morning. Stewart-Peterson says the narrowing of the Choice/Select spread is an “increasingly bearish signal” for the fed cattle market.

 

Cattle staying oversold

 

The fed cattle market remains extremely oversold, says The Hightower Report. “There is some hope that the coronavirus will slow the spreading and eventually be eliminated by April,” they said. Hightower added as long as domestic travel and restaurant traffic remains strong, the market could see even better demand ahead.

 

USDA increased domestic pork production for every quarter of 2020 in its latest report. Stewart-Peterson says while that is bearish news, “the drop in production from the first to second quarter has now increased to 415 million pounds, the biggest drop since 2008.”

 

Grain markets recover Wednesday

 

Soybean prices continued to recover Wednesday with moderate gains. Hightower says meal and oil prices also closed higher today. Reports of delays with the Brazilian soybean harvest also brought some bullishness to the market. Two recent meal purchases from South Korea also boosted prices.

 

Renewed optimism regarding the coronavirus could be spurring corn prices upward, says Stewart-Peterson. “Trade in the weeks and months ahead could be back on somewhat normal track,” they said.

 

Corn

 

March corn closed up 3 ¼ cents to $3.83, while May corn closed up 3 cents to $3.87. Hightower says “while corn prices continued their coiling price action within a 9-cent trading range for the 10th session in a row, they were able to lift clear of their recent lows with a moderate gain.”

 

ADM Ag Market View says corn future are becoming oversold, and “U.S. farmers have become reluctant cash sellers.” Weekly ethanol production was down from a week ago, but is still higher than at this point in 2019.

 

Soybeans

 

March soybeans closed up 7 ¾ cents to $8.92, while May beans were up 6 ¼ cents to $9.03 ½. Hightower says meal prices are rising from oversold levels, adding “daily momentum studies would support higher prices, “especially on a close above resistance.”

 

Since bottoming on Feb. 3 at $8.68 ¾, March beans have gained nearly 25 cents, says Stewart-Peterson. “Lack of farmer selling on the push lower and expectations of increased exports helped provide underlying support.”

 

Wheat

 

March wheat prices closed up 5 ½ cents to $5.47 ½, while May wheat was up 4 ½ cents to $5.48 ½. Hightower says after wheat prices tumbled to an eight-week low overnight, prices were “able to find upside momentum this morning s they finished Wednesday’s trading session with a moderate gain.”

 

ADM Ag Market View says higher wheat futures could be linked higher financial and energy markets. Last week “managed funds were large sellers of grain contracts and reducing their long in Chicago wheat.”

 

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