[Tues]: Federally inspected hog slaughter for Monday was estimated at 458,000 head. That is 1,000 head more than last Monday, and 9,000 head more year-to-year, Brugler Marketing said… “Pork prices are in a better position to bounce if exports stay strong and the industry re-stocks frozen storage,” The Hightower Report said… [Mon]: National Daily Hog and Pork Summary / National carcass base down 11 cents… Iowa-Minnesota carcass base down 38 cents… USDA reported carcass cutout values this afternoon rose 20 cents… 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…
Farm Commodity Newsletter/Iowa Farmer Today
Tue 6/23/2020 8:46 AM
Lean Hogs - Federally inspected hog slaughter for Monday was estimated at 458,000 head. That is 1,000 head more than last Monday, and 9,000 head more year-to-year, Brugler Marketing said.
Traders will monitor the USDA hogs and pigs report closely this week with a short-term jump in production due to the backlog of hogs in the country, and this could clash with evidence of increase sow slighter over the past several months. “This might be supportive to deferred contracts, The Hightower Report said.
“Pork prices are in a better position to bounce if exports stay strong and the industry re-stocks frozen storage,” The Hightower Report said.
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
In weighted average negotiated prices for barrows and gilts, USDA reported;
National carcass base down 11 cents to $28.36/cwt.
Iowa-Minnesota carcass base down 38 cents to $27.67
USDA reported carcass cutout values this afternoon rose 20 cents at $64.84/cwt.
News that China has suspended poultry imports from a Tyson food plant where hundreds of employees tested positive for the coronavirus helped to pressure the market, according to The Hightower Report.
Pork processing facilities have been hit hard with employee health issues and some slaughter facilities have shut down in recent months. Earlier this year daily slaughter levels were about to set new records, according to ADM Investor Services.
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.
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.
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.
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.