[Tues]: Wholesale pork prices were up $10.20 last week, but the lean hog index only rose $3.89 in that span, Allendale said. “Pork packers don’t have beef packer margins currently, but they are getting close,” they said… [Mon]: National carcass base was $1.08 higher… Iowa-Minnesota carcass base was up $1.13… USDA reported carcass cutout values this afternoon rose $3.47… Pork retail demand and trade with China helped push hog markets higher. “Ideas that retail demand from grocery stores will remain strong and that demand for pork from China from the US will also remain strong has helped to support,” the Hightower Report said. “Pork cut-out values at midsession came in at $84.21, up $4.17 on the day”… Hogs were much higher on the day as well, supported by strong pork cut-out values. “April hogs closed up the 300 point limit”…

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Tue 3/24/2020 8:45 AM

 

Lean hogs - Wholesale pork prices were up $10.20 last week, but the lean hog index only rose $3.89 in that span, Allendale said. “Pork packers don’t have beef packer margins currently, but they are getting close,” they said.

 

Despite yesterday’s limit-up trade in the hog market, Oliver Sloup of Blue Line Futures said they are still “not huge fans of hogs,” and would look to other markets such as cattle for better opportunities.

 

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

 

In weighted average negotiated prices for barrows and gilts, USDA reported;

 

National carcass base was $1.08 higher to $57.41/cwt.

National live was $1.11 lower to $41.19

Iowa-Minnesota carcass base was up $1.13 to $58.10

 

USDA reported carcass cutout values this afternoon rose $3.47 to $83.51/cwt.

 

Pork retail demand and trade with China helped push hog markets higher. “Ideas that retail demand from grocery stores will remain strong and that demand for pork from China from the US will also remain strong has helped to support,” the Hightower Report said. “Pork cut-out values at midsession came in at $84.21, up $4.17 on the day.”

 

“I think the futures are finally in lockstep with (beef),” Virginia McGathey, with McGathey Commodities, said. “I think the movement in China last week is really what opened the gates, now that’s going to start to bring the pork industry along. As long as we get more momentum, more participation in the market, we’re going to see the fundamentals really start to drive this.”

 

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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