[Thurs]: “Continued weakness for the beef market short-term would be a negative signal for the cash markets,” The Hightower Report said… [Weds]: Afternoon National Slaughter Cattle Review / Boxed beef cutout values this afternoon were lower… Choice fell $1.59… Select went down $1.47… In negotiated cash sales in Nebraska, the USDA reported 9,313 head sold dressed at $152-155, with 3,553 sold live at $95-96. In Iowa/Minnesota, 472 head were sold live at $95-96.50, and 2,976 head were sold dressed at $152-155…
Farm Commodity Newsletter/Iowa Farmer Today
Thu 7/2/2020 8:53 AM
Cattle - “Continued weakness for the beef market short-term would be a negative signal for the cash markets,” The Hightower Report said.
Beef prices are the lowest since March 12 which a bearish short-term force on the market, said The Hightower Report.
USMCA work together against AFS
As part of the United States-Mexico-Canada Agreement (USMCA), the three countries are working closely together with frequent meetings about ways to keep African swine fever (ASF) out of North America. “When it comes to animal health, our neighbors’ interest and ours are very much aligned” said USDA’s Lisa Rochette Assistant Director for Swine Health.
Although much anticipated, the impact of restaurants reopening in the U.S. has been significantly slower than expected which has kept the beef market in a steady downtrend, said The Hightower Report.
Wed 7/1/2020 4:34 PM
Boxed beef cutout values this afternoon were lower on Choice and Select, USDA said.
Choice fell $1.59 to $205.38/cwt.
Select went down $1.47 to $198.43.
In negotiated cash sales in Nebraska, the USDA reported 9,313 head sold dressed at $152-155, with 3,553 sold live at $95-96. In Iowa/Minnesota, 472 head were sold live at $95-96.50, and 2,976 head were sold dressed at $152-155.
August cattle closed moderately higher but it was an inside trading day. The technical indicators support a move higher, according to The Hightower Report.
There are still concerns about the fallout of the COVID-19 return and its impact on the cattle market, according to Virginia McGathey of the CME Group.
Livestock sees gains before holiday
The hog market may think the bottom is in while the cattle market is looking for a bit of demand growth over the July 4 holiday, according to Virginia McGathey of the CME Group.
Pasture crop conditions are a concern and the weekly USDA report rated 26 percent of the nation’s pastures as poor to very poor, according to Karl Setzer of Agrivisor.
Grain rally continues on
From out of nowhere a wildly bullish acreage report was dropped on the market yesterday by USDA, reducing corn acres from March 1 by a whopping five million acres and that is still a factor in the market, according to William Moore of the Price Futures Group.
The U.S. farmer has been a big seller of old crop corn stocks today with Midwest elevators reporting their best movement of the year, according to Jerry Gidel.
Corn prices rose on continued strength from the sharp reduction in the 2020 U.S. corn plantings and concerns for the crop on the forecast for hot and dry weather going into pollination, according to CHS Hedging.
The question is why so many acres were lost between the March and June reports and the primary factor appears to be weather, according to Karl Setzer of Agrivisor.
Soybeans continue their trek higher on smaller than expected planted acres and on the hot and dry forecast, according to CHS Hedging.
Demand is better and crush is on a record pace, according to Virginia McGathey of the CME Groups.
The wheat market was mixed on spillover strength in the row crops, according to CHS Hedging, although rains in some areas overnight put some markets on the defensive.
Strength in the corn market and smaller than expected spring wheat planted acres helped to provide some support today, according to The Hightower Report.