[Tues]: The market is temporarily bullish right now, The Hightower Report said. This comes despite a “surplus of meat” in the pipeline, but COVID-19 worries has beef coming off the shelves. “The recovery in the cash market and a further surge in beef prices should support the market short-term”… [Mon]: Boxed beef cutout values this afternoon were sharply higher… “Nothing is for sure, but it looks like a serious bull market is ahead of us right now,” Virginia McGathey, with McGathey Commodities, said. “That China’s finally opening the doors a little to some of the purchases of U.S. products might have spurred the market up a little more… The stronger the momentum is, the harder it’s going to be to stop it”…

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Tue 3/24/2020 8:45 AM

 

Cattle - After yesterday’s gains, Oliver Sloup of Blue Line Futures said “Just as the market overshot to the downside, we wouldn’t be surprised t see it overshoot to the upside.” He said yesterday’s limit-up trade all day “could have been just the beginning.”

 

The market is temporarily bullish right now, The Hightower Report said. This comes despite a “surplus of meat” in the pipeline, but COVID-19 worries has beef coming off the shelves. “The recovery in the cash market and a further surge in beef prices should support the market short-term.”

 

Expanded limits for livestock today

 

Yesterday’s Cold Storage report showed pork stocks at 661.6 mln pounds, a 87 mln pound increase from last month, while beef stocks came in at 490.981 mln pounds, holding steady from last month’s mark.

 

All livestock markets will be trading with expanded limits today, which should add to any volatility already in the market.

 

Mon 3/23/2020 4:54 PM

 

Boxed beef cutout values this afternoon were sharply higher on good demand and heavy offerings, the USDA said.

 

Choice was up $3.57 to $257.32/cwt.

Select was $4.97 higher to $245.14.

 

In negotiated cash sales in Nebraska, the USDA reported 200 head sold live for $115, and 154 head sold dressed for $185. In Iowa-Minnesota, there were no reported live sales, and 170 head sold dressed.

 

“Nothing is for sure, but it looks like a serious bull market is ahead of us right now,” Virginia McGathey, with McGathey Commodities, said. “That China’s finally opening the doors a little to some of the purchases of U.S. products might have spurred the market up a little more… The stronger the momentum is, the harder it’s going to be to stop it.”

 

Traders still viewed cattle markets as trading at a discount, and boxed beef values continued to climb. “April cattle is still trading at a large discount to the cash market which has provided underlined support as well,” the Hightower Report said. “Boxed beef cut-out values at midsession came in at $257.84, up $4.09 on the day.”

 

Livestock surges up

 

Monday was a good day for livestock markets, with cattle surging higher on beef values and cash cattle trade. “April cattle opened and closed limit up on the day,” the Hightower Report said. “The surge in boxed beef cut-out values along with higher trade in the cash cattle last week helped to support active buying.”

 

Hogs were much higher on the day as well, supported by strong pork cut-out values. “April hogs closed up the 300 point limit,” the Hightower Report said. “Traders were impressed with the strength in pork cut-out values last week during a period when pork production was up more than 11% from a year ago.”

 

Soy, wheat surge, corn lags behind

 

“The grain markets were thought to have garnered strength from hopes of increased demand for meal and wheat,” Ami Heesch, with CHS Hedging, said. “The corn market lagged beans and wheat on dwindling demand for corn use for ethanol. The stocks market is still on the defensive although has bounced of lows made earlier in the session.”

 

Soybean exports were ahead of last year’s pace, and domestic soymeal demand was good. “Weekly US soybean exports were near 21 mln bu. vs 31 last year,” Steve Freed, with ADM Investor Services, said. “Season to date exports are near 1,146 vs 1,049 last year. USDA goal is 1,825 vs 1,748 last year. Increase in domestic soymeal demand is supporting soybean prices.”

 

Corn

 

“Corn futures trade both sides of unchanged,” Steve Freed, with ADM Investor Services, said. “Corn futures are still under pressure on concern about lower US corn demand. Some feel a combination of lower ethanol demand and export could raise US 2019/20 corn end stocks as much as 300 mln bu.”

 

Corn was unable to move higher Monday due to concerns about ethanol demand. “The corn market traded on the defensive from lack of ethanol demand for fuel with the current virus situation across the globe,” Ami Heesch, with CHS Hedging, said.

 

Soybeans

 

Soybeans were much higher on strong meal markets and shipping news. “The soy complex continues to soar as strength in the meal market fuels the soybean market,” Ami Heesch, with CHS Hedging, said. “Meal stocks are said to be very tight in China. Prices drew additional support from concerns about potential delays in shipments from South America.”

 

“Soybean futures traded higher,” Steve Freed, with ADM Investor Services, said. “Concern about Argentina export pace and increase demand in US and China is helping meal. May soybeans is back near where futures traded below on lower energy prices and demand concerns and near 8.80.”

 

Wheat

 

Wheat continued to move higher on demand optimism. “Wheat futures continue to jump higher,” Steve Freed, with ADM Investor Services, said. “Positive technical signals is attracting new buying. Talk of increase US domestic demand for US flour and concern if supply is disrupted due the spread flu has helped rally futures.”

 

“The wheat market pushed higher on increased global demand, strong domestic mill demand,” Ami Heesch, with CHS Hedging, said. “Mpls lagged KC and Chicago as China’s demand for wheat is not thought to be that of spring wheat, because their specifications are thought to be much tighter than what we could most likely deliver.”

 

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