[Mon]: Allendale reported that last week’s cattle processing totaled 680,000 head (668,000 estimated) but was over the previous week’s 656,000. Last week’s run (at +1.4% year/year) was the first weekly run over last year’s kill in 12 weeks. Cattle are not yet into the backlog though as the natural supply is roughly 3% over last year… [Fri]: Afternoon National Slaughter Cattle Review / Boxed beef cutout values this afternoon were lower… Choice fell $1.09… Select went down $1.08… In negotiated cash sales in Nebraska, the USDA reported 83 head sold dressed at $155, with 171 head sold live at $95. In Iowa/Minnesota, 106 head were sold live at $98, and no dressed sales. “Cash trade stays pressured with the large buildup of slaughter animals due to COVID-19,” Stewart-Peterson said. “Weekly slaughter has moved back to pre-lockdown levels, but supplies are plentiful, weighing on the cash market…

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Mon 6/29/2020 8:30 AM

 

Cattle - The Fourth of July falls on Saturday this year, making it unclear how slaughter volumes will be impacted, according to The Cattle Report. An informal review of beef retail prices across the country shows broad pricing improvements on beef cuts making beef a popular choice for the weekend. Retailers are willing to extend inventories at the more attractive box pricing. Especially attractive is the 50% grind that has fallen dramatically during the past few weeks.

 

Allendale reported that last week’s cattle processing totaled 680,000 head (668,000 estimated) but was over the previous week’s 656,000. Last week’s run (at +1.4% year/year) was the first weekly run over last year’s kill in 12 weeks. Cattle are not yet into the backlog though as the natural supply is roughly 3% over last year.

 

Supply glut flattens livestock purchases

 

The monthly hog and pig report reported large supplies of pork for weeks to come. Market-ready pigs over 180 pounds were the most watched number and were up 13% from the prior year. The next weight category was up 12% assuring a steady and abundant supply of pigs in future weeks, according to The Cattle Report.

 

August cattle has remained in a choppy to lower consolidation pattern since early May. Beef prices remain in a short-term downward trend and until prices can find a floor, the market is vulnerable to speculative selling, according to The Hightower Report.

 

Fri 6/26/2020 4:27 PM

 

Boxed beef cutout values this afternoon were lower on Choice and Select, USDA said.

 

Choice fell $1.09 to $207.17/cwt.

Select went down $1.08 to $198.85.

 

In negotiated cash sales in Nebraska, the USDA reported 83 head sold dressed at $155, with 171 head sold live at $95. In Iowa/Minnesota, 106 head were sold live at $98, and no dressed sales.

 

“Cash trade stays pressured with the large buildup of slaughter animals due to COVID-19,” Stewart-Peterson said. “Weekly slaughter has moved back to pre-lockdown levels, but supplies are plentiful, weighing on the cash market. So, demand remains the key, and with retail values being soft, domestic demand has been moderate.”

 

Cash markets are staying weak, Virginia McGathey of McGathey Commodities said. There are worries about summer demand from consumers and restaurants as coronavirus seems to be resurging in some areas.

 

Hogs tumble to close week

 

The August hogs contract was down more than $3.00 today, with the USDA hogs and pigs report being seen as bearish “across the board,” The Hightower Report said.

 

Cattle markets were choppy and two-sided today, as it traded in sympathy with hog weakness, The Hightower Report said. “The market has stayd inside of Tuesday’s range ever since,” they said.

 

Slowdown worries hurt prices

 

Worries of another economic slowdown from the coronavirus are looming over the markets, leading to a negative day, Ami L. Heesch of CHS Hedging said.

 

Markets are now looking at virus concerns and next Tuesday’s acreage report moving forward, Heesch said.

 

Corn

 

Corn futures were slightly lower today as the week closed as normal rains across the Midwest should improve U.S. corn crop ratings, ADM Investor Services said. “There is also new talk That Chinese officials warn that increase US involvement in China affairs could jeopardize US and China trade deal,” they said.

 

“The combination of technical selling, a favorable forecast, and funds adding to short positions all weighed on futures this week,” Stewart-Peterson said. “In addition, there is much speculation as to what the quarterly stocks and acreage reports might say next week.”

 

Soybeans

 

“China continues to buy from Brazil,” Virginia McGathey of McGathey Commodities said. Sales from Brazil to China are up 41% from last year, while U.S. sales need to jump up to meet expected forecasts from the USDA based on the Phase 1 trade deal, she said.

 

“Managed funds actually increased net soybean and soymeal short positions,” ADM Investor Services said. They noted that much of today’s resistance came from a favorable 2-week forecast while worries about more coronavirus cases added to the overlying mood.

 

Wheat

 

Wheat took a hit today as there is concern over wheat demand due to the increase in virus cases recently. Export demand is also a concern as EU and Black sea futures have dropped despite news of smaller crops in those regions, ADM Investor Services said.

 

There is a lot of uncertainty about demand growth, Virginia McGathey of McGathey Commodities said of the wheat market. “There is a number of things in the air that could underpin the futures right now, but generally it was selling all day long.”

 

iowafarmertoday.com