[Fri]: The lean hog market should find some support from the Cold Storage report, as it saw a 0.3% decrease from last year, when stocks typically increased by 2.4% from April to May, The Hightower report said… [Thurs]: National Daily Hog and Pork Summary / National carcass base up $1.42… Iowa-Minnesota carcass base up $1.38… USDA reported carcass cutout values this afternoon fell $2.07… Today’s export sales report showed net cancellations in a surprising export sales report, The Hightower Report said. Most of those cancellations came from China’s dropping of 12,561 tonnes, they said. The Smithfield plant reopening in South Dakota helped a lot of the lean hog upturn today, Stewart-Peterson said. That should help slaughter numbers improve, as the plant is responsible for nearly 5% of the nations production, they said…

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Fri 5/22/2020 8:36 AM

 

Lean hogs - “Any higher trade today would be considered an upside breakout,” The Hightower Report said. “While near record high weights are seen as a negative factor, it will be difficult for the market to replace the pork lost from forced euthanasia by producers who were near plants which closed due to virus issues.”

 

The lean hog market should find some support from the Cold Storage report, as it saw a 0.3% decrease from last year, when stocks typically increased by 2.4% from April to May, The Hightower report said.

 

Cold storage shows declines in beef, pork

 

Yesterday’s cold storage report showed 614.811 mln pounds of pork at the end of April, a 2 mln pound “draw-down” Allendale said. Beef stocks are at 490 mln pounds, a 12 mln decline from March’s report.

 

While the Cold Storage is something the markets are keeping an eye on, Oliver Sloup of Blue Line Futures said the market is likely more focused on today’s Cattle on Feed report.

 

Thu 5/21/2020 4:58 PM

 

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

 

National carcass base up $1.42 to $39.37/cwt.

National live had no comparison, sitting at $29.46

Iowa-Minnesota carcass base up $1.38 to $40.91

 

USDA reported carcass cutout values this afternoon fell $2.07 to $97.85/cwt.

 

Today’s export sales report showed net cancellations in a surprising export sales report, The Hightower Report said. Most of those cancellations came from China’s dropping of 12,561 tonnes, they said.

 

The Smithfield plant reopening in South Dakota helped a lot of the lean hog upturn today, Stewart-Peterson said. That should help slaughter numbers improve, as the plant is responsible for nearly 5% of the nations production, they said.

 

Hogs withstand tough export sales

 

“Disappointing” export sales news pressured the market early today for lean hogs, The Hightower Report said. But that wasn’t enough to keep prices lower as July hogs hold a large discount to the cash market, they said. The July contract closed just below its highs on the day.

 

June Cattle saw its highest close since March 10 today, as it deals with its own discount to the cash market. “The fact that cash cattle continues to trade firm has helped support the June contract,” The Hightower Report said.

 

Tensions making for uncertain markets

 

Markets are reacting to “heightened” tensions between the U.S. and Chinese, making corn and soybeans trade lower on the day, Ami L. Heesch of CHS Hedging said. Beneficial rains also stopped the rally in the wheat market, which saw mixed trade today.

 

That tension is raising concern about the Phase 1 agreement between the U.S. and China, as the Chinese have been slow buyers of new crop thus far, ADM Investor Services said.

 

Corn

 

Corn saw a narrow range today as the Memorial Day holiday weekend approaches. Favorable planting weather put pressure on prices and weekly export sales “were disappointing,” Ami L. Heesch of CHS Hedging said.

 

“There may be some prevent acres in the Dakotas, but we don’t believe enough presently to suggest a significant supportive factor for price,” Stewart-Peterson said. “Funds are holding a large net short position heading into the summer which could help fuel a bounce, but so far even recovering energy prices cannot spark much in the way of short covering.”

 

Soybeans

 

Chinese buying is going to be the key to price direction, ADM Investor Services said. “Heavy rains in parts of the central and east may have slowed plantings there,” they said. “Funds were net sellers of futures reducing their net long.”

 

“There are some who are beginning to doubt whether the phase one agreement will be intact by the end of the year,” Stewart-Peterson said. “Recent weather is also viewed as somewhat negative as planting has gone very quickly so far this spring.”

 

Wheat

 

The wheat market failed to hold the slightly higher opens this morning, Ami L. Heesch of CHS Hedging said. “Chicago drew strength from ongoing dryness in EU and the Black Sea Region,” she said. “Rain events are expected to move across the Northern Plains over the weekend.”

 

“Wheat futures managed moderate gains on talk of dryness across parts of Europe and Russia,” ADM Investor Services said. “Rains in east Europe and Ukraine limited gains. Rains also across parts of US south plains could help crops there. Wheat future have rallied due to higher French wheat prices and higher new crop Russia prices.”

 

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