[Thurs]: The pork market remains in a consolidation but The Hightower Report still sees “the need for lower prices” in order to move the excess supply. With U.S. pork production running 8 to 12 % above a year ago… [Weds]: National Daily Hog and Pork Summary / National carcass base down 37 cents… Iowa-Minnesota carcass base down 82 cents… USDA reported carcass cutout values this afternoon fell $1.50… 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…

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Thu 7/30/2020 9:02 AM

 

Lean hogs - The pork market remains in a consolidation but The Hightower Report still sees “the need for lower prices” in order to move the excess supply.

 

With U.S. pork production running 8 to 12 % above a year ago, the market will need active export news to avoid weakness in pork cut-out values, The Hightower Report said.

 

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

 

In weighted average negotiated prices for barrows and gilts, USDA reported;

 

National carcass base down 37 cents to $42.30/cwt.

National live was 3 cents higher to $32.57

Iowa-Minnesota carcass base down 82 cents to $42.09

 

USDA reported carcass cutout values this afternoon fell $1.50 to $67.91/cwt.

 

October lean hogs closed moderately lower on the session but well up from the lows, according to The Hightower Report.

 

The technical picture looks brighter than the fundamental one for hogs as August hogs keep creeping higher, according to William Moore of Agmaster.

 

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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