[Fri]: USDA’s weekly Export Sales report showed beef bookings up 21% week to week and up 61% year-to-year, according to Brugler Marketing. The sharp drop in beef prices could keep the cash trend down for now, The Hightower Report said… [Thurs]: Afternoon National Slaughter Cattle Review / Boxed beef cutout values this afternoon were lower… Choice was down $1.43… Select was $1.76… In negotiated cash sales in Nebraska, the USDA reported 2,006 head sold live for $95-98, and 1,717 head sold dressed for $152-155. In Iowa-Minnesota, there were 40 head sold live for $98, and 676 head sold dressed for $153-155… “U.S. beef export sales for the week ending June 18 came in at 24,300 tonnes, compared with the average of the previous four weeks of 16,075,” the Hightower Report said. “Cumulative sales for 2020 have reached 528,700 tonnes, down -3.8% from last year's pace”…
Farm Commodity Newsletter/Iowa Farmer Today
Fri 6/26/2020 8:44 AM
Cattle - August fats remained lower, while the other front months finished in the black. USDA’s weekly Export Sales report showed beef bookings up 21% week to week and up 61% year-to-year, according to Brugler Marketing.
The sharp drop in beef prices could keep the cash trend down for now, The Hightower Report said.
McDonald’s drops Beyond Beef
Beyond Beef, the company producing alternative plant based meats, suffered a major blow this week, according to The Cattle Report. McDonalds had sponsored burger offerings of the alternative meat in Canada and had expanded the trial to multi-locations in Canada. They announced the trials were ending and the Beyond Burger would be dropped from the menu.
Some hog futures were in triple digit gain territory yesterday, Brugler Marketing said.
Thu 6/25/2020 4:40 PM
Boxed beef cutout values this afternoon were lower on Choice and lower on Select, the USDA said.
Choice was down $1.43 to $208.26/cwt.
Select was $1.76 to $199.93.
In negotiated cash sales in Nebraska, the USDA reported 2,006 head sold live for $95-98, and 1,717 head sold dressed for $152-155. In Iowa-Minnesota, there were 40 head sold live for $98, and 676 head sold dressed for $153-155.
Traders were watching beef export trends. “U.S. beef export sales for the week ending June 18 came in at 24,300 tonnes, compared with the average of the previous four weeks of 16,075,” the Hightower Report said. “Cumulative sales for 2020 have reached 528,700 tonnes, down -3.8% from last year's pace.”
“There have been questions lately regarding the safety of meat exports that have potentially been exposed to Covid, but the USDA and FDA released a joint statement today saying that there is no evidence that Covid can be transferred through food or food packaging,” Stewart-Peterson said.
Hogs trade higher ahead of report
“August cattle closed slightly lower on the session,” the Hightower Report said. “A continued steep downtrend in the beef price is seen as a short-term negative force, and could lead to even lower cash cattle trade ahead. Just a few weeks ago, August cattle was trading at a huge discount to the cash market, but cash markets yesterday were trading near $96.50.”
“August hogs closed slightly higher on the day,” the Hightower Report said. “Deferred contracts are trading moderately higher on the day. Positioning ahead of the USDA report is helping to keep trade choppy. A jump in pork cut-out values yesterday combined with news that weights have come down for six weeks in a row is helping to provide underlying support.”
Corn, soybeans fall on weather
“The grain markets were mostly a sea of red with forecasts for favorable weather conditions and reports that a number of corn and bean fields look the best they have seen in several years,” Ami Heesch, with CHS Hedging, said. “The one bright spot was Chicago wheat, which was in the green. July options expire tomorrow after the close.”
“An increase in the world grain supply according to the International Grain Council was also viewed as negative (for corn),” Stewart-Peterson said. Improved crop ratings this week and a forecast which looks warm and wet is keeping prices under pressure. The combination of technical selling, a favorable forecast and funds adding to short positions weighed on futures.”
“The corn market lost ground amidst mostly favorable weather conditions and big crop ideas,” Ami Heesch, with CHS Hedging, said. “The average trade estimated for acres planted came in at 95.2 mln acres. That, combined with two crop years looking at heavy ending stocks, does not seem low enough to rally prices significantly.”
“Corn futures traded lower,” Steve Freed, with ADM Investor Services, said. “Futures made new lows on talk of favorable US Midwest 2 week weather and liquidation of July open interest before first notice day next Tuesday. Some look for the dry areas of the east Midwest to see .50-1.50 locally 3.0 inches of needed rains over the next 1-5 days.”
“The bean market continues to try and push lower having three significant down days in the last six sessions,” Stewart-Peterson said. “Yet on all three days, prices finished in the upper range of the daily price movement and in most cases finished near the high of the day. That tells us traders are still looking to buy soybeans on a break.”
“The soy complex slumped on favorable conditions for the crop to grow, reports that many fields look pretty darn good and ideas of additional acreage planted to beans,” Ami Heesch, with CHS Hedging, said. “Crop conditions are expected to improve from last week in Monday’s crop progress/conditions report.”
“Wheat futures closed mixed,” Ami Heesch, with ADM Investor Services, said. “Chicago traded higher on some liquidation of long soybean and short wheat spread trade. Harvest pressure continues to weigh on KC futures. Most feel US winter wheat harvest will be over 40% done by Monday. Historically completion of harvest could offer support futures.”
“And then there is wheat!” Ami Heesch, with CHS Hedging, said. “A battle to rally toward higher prices amidst US harvest activity, strength in the US$ and increasing world supplies. Chicago did get a bit of a lift form a bout of short covering, which drew support for the nearby contracts. Mpls settled 3-4 cents above contract lows from Dec 20 through Sep 21.”