[Tues]: The cattle market continues to probe for support as the beef market seems to be stabilizing. But live cattle market continues to drift lower, according to The Hightower Report… The negotiating leverage of the processors was evident early this week when stable, steady boxed beef prices failed to halt the rapid decline in cash prices for cattle, according to the Cattle Report… [Mon]: Afternoon National Slaughter Cattle Review / Boxed beef cutout values this afternoon were steady on Choice and higher on Select… Choice rose 34 cents… Select went up 39 cents… In negotiated cash sales in Nebraska, the USDA reported 2,037 head sold dressed at $152-155, with no live sales. In Iowa/Minnesota, 120 head were sold live at $100, with no dressed sales… With global unemployment high shoppers are not buying high end cuts such as steaks and roasts but they are buying more low cost proteins such as ground meat products, according to ADM Investor Services…

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Tue 6/23/2020 8:46 AM

 

Cattle - The cattle market continues to probe for support as the beef market seems to be stabilizing. But live cattle market continues to drift lower, according to The Hightower Report. With China trade frictions and a bearish cattle-on-feed report, the market could see a test of last week’s lows.

 

The negotiating leverage of the processors was evident early this week when stable, steady boxed beef prices failed to halt the rapid decline in cash prices for cattle, according to the Cattle Report.

 

COVID-19 slams German slaughterhouse

 

German Chancellor Angela Merkel’s spokesman said “everything needs to be done” to contain an outbreak of the coronavirus linked to a large slaughterhouse where over 1,300 people have tested positive for COVID-19, the Associated Press reported.

 

A Brazil exporter and a British pork importer have voluntarily suspended exports because of coronavirus inspections. This is a significant concern for the market as China customs could make exports difficult if China suddenly believes the virus can move in packaged meats, according to The Hightower Report.

 

Mon 6/22/2020 4:58 PM

 

Boxed beef cutout values this afternoon were steady on Choice and higher on Select on light to moderate demand and light offerings, USDA said.

 

Choice rose 34 cents to $214.06/cwt.

Select went up 39 cents to $204.30.

 

In negotiated cash sales in Nebraska, the USDA reported 2,037 head sold dressed at $152-155, with no live sales. In Iowa/Minnesota, 120 head were sold live at $100, with no dressed sales.

 

The June cattle on feed report surprised trade with higher cattle numbers. As of June 1 the United States had 11.67 million head of cattle on feed, according to Karl Setzer of Agrivisor.

 

Traders noted an increase in slaughter from recent months but last week’s slaughter is still down 1.8% from last year while beef production is up 1.5%, according to The Hightower Report.

 

Livestock Weak on China Concerns

 

Fears that a slowdown in meat exports to China could cause domestic per capita supply of all meat to jump helped to pressure the livestock markets, according to The Hightower Report.

 

With global unemployment high shoppers are not buying high end cuts such as steaks and roasts but they are buying more low cost proteins such as ground meat products, according to ADM Investor Services.

 

Grain Markets on Defensive

 

The grain markets were on the defensive, with widespread rains forecast for the Midwest this week, according to CHS Hedging.

 

Currency rates are a factor in the markets. The U.S. dollar had started to fall in comparison to the Brazilian Real and the Argentine Peso but that trend has reversed, according to Karl Setzer at Agrivisor.

 

Corn

 

The corn market traded lower on mostly favorable weather conditions. Over the past four decades there were nine years as dry as this year, according to CHS Hedging.

 

There was an increase announced to today to the Brazilian corn crop. The firm Safras raised its corn crop projection to 108.4 million metric tons, well above most other estimates that ranged from 99 to 101 million metric tons, according to Karl Setzer of Agrivisor.

 

Soybeans

 

While the soybean market traded lower on favorable weather conditions there was upbeat news that China may be looking for another round of U.S. soybeans, according to CHS Hedging.

 

December soybean meal pushed down to the lowest level since June 3 and has been lower in six of the last seven trading sessions, according to The Hightower Report.

 

Wheat

 

The USDA raised the world 2020-2021 wheat crop projection to 773 million metric tons with most of the increase in China, India and Australia, according to ADM Investor Services.

 

Wheat harvest progress was at 15 percent last week and is estimated at 30 percent this week as reports indicate decent yields and low protein levels, according to CHS Hedging.

 

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