[Thurs]: Continued talk of a cash cattle rally over the near term has helped to provide underlying support, with talk of a lower show list leaving traders optimistic on cash, The Hightower Report said. USDA livestock analyst Shayle Shagum says there is a gradual return to normalcy in the beef business after the slaughter disruptions earlier in the year. Processors have a positive margin. The latest numbers show feedlot prices were still negative… [Weds]: Afternoon National Slaughter Cattle Review / Boxed beef cutout values this afternoon were lower on Choice and higher on Select… Choice fell $1.85… Select went up $1.17… In negotiated cash sales in Nebraska, the USDA reported 4,911 head sold dressed at $158-160, with no live sales. In Iowa, 2,375 head were sold live at $100-102, and 3,107 head were sold dressed at $157-160… August cattle is caught in a range dealing with the headwinds of hefty premium to cash and burdensome supplies coming soon, according to William Moore of Agmaster…

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Thu 7/30/2020 9:02 AM

 

Cattle - Continued talk of a cash cattle rally over the near term has helped to provide underlying support, with talk of a lower show list leaving traders optimistic on cash, The Hightower Report said.

 

USDA livestock analyst Shayle Shagum says there is a gradual return to normalcy in the beef business after the slaughter disruptions earlier in the year. Processors have a positive margin. The latest numbers show feedlot prices were still negative in June while cow calf prices are “not stellar” but still on a positive trend considering the annual view with prices down $1 cwt from this time last year, Shagum said in a USDA news radio report.

 

WTD FI cattle slaughter through Wednesday was estimated at 355,000 head. That exceeds last week’s pace by 3,000 head, but is 5,000 head behind the same week last year, said Brugler Marketing.

 

Pork production balloons to third quarter

 

The major bearish force for pork over the next week is the level of production, The Hightower Report said this morning. Over the past 20 years, pork production from the second quarter to the third has normally increased by about 100 million to 200 million pounds, “This year the USDA sees pork production increasing by a record 995 million pounds,” according to The Hightower Report.

 

The burdensome supply of heavier-weight cattle kept on feedlots longer than normal has been slow to emerge, The Hightower Report said this morning. Meanwhile cattle slaughter over the past two weeks has come in below a year ago and the cattle showlist this week is small causing traders hope for the cash trade to go up, according to The Hightower Report.

 

Wed 7/29/2020 4:37 PM

 

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

 

Choice fell $1.85 to $201.11/cwt.

Select went up $1.17 to $189.49.

 

In negotiated cash sales in Nebraska, the USDA reported 4,911 head sold dressed at $158-160, with no live sales. In Iowa, 2,375 head were sold live at $100-102, and 3,107 head were sold dressed at $157-160.

 

The market challenged Monday’s high early and continued talk that cash cattle can rally over the near term has helped to provide underlying support, according to The Hightower Report.

 

There has been talk lately that supplies of heavy cattle reported last week were actually lower than what was expected and this could create some supply tightness later in the year, according to Stewart-Peterson.

 

Cattle seeing "hefty premium" to cash

 

August cattle is caught in a range dealing with the headwinds of hefty premium to cash and burdensome supplies coming soon, according to William Moore of Agmaster.

 

It was announced today that Argentina is close to an agreement with China to increase pork production and trade with China, according to Karl Setzer of Agrivisor.

 

Grain markets stay weak

 

Grain markets were weak on Wednesday on retreating temperatures after recent heat. Wheat found some legs but corn and soybeans struggled, according to CHS Hedging.

 

If there was any confusion as to who is the 800 pound gorilla in the room today’s market action confirmed it and it is bearish weather, according to William Moore at Agmaster.

 

Corn

 

Corn futures finished lower for the fourth consecutive session on good weather, expectations of higher yield estimates and a lack of end-user buying, according to Stewar-Peterson.

 

The Federal Reserve opted to leave interest rates near zero and that could help the market, according to CHS Hedging.

 

Soybeans

 

Soybeans were choppy but closed lower on the session and experienced the lowest close since July 15, according to The Hightower Report.

 

Thoughts in the market are that crops are looking better all the time as the temperatures have retreated slightly and there have been some pop-up showers in the Midwest, according to CHS Hedging.

 

Wheat

 

What prices were higher on weakness in the dollar and more cuts to the French and Russian wheat crops, according to CHS Hedging.

 

Oklahoma and Kansas are getting nice, timely rains but drought remains a concern for Colorado and Texas, according to Stewart-Peterson.

 

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