[Fri]: While the export demand news remains strong, traders remain very nervous that production levels will remain high and this could keep pressure on domestic prices, according to The Hightower Report. Weights remain high and it may be difficult for the domestic market to absorb the hefty short-term supply of pork without lower prices… [Thurs]: National Daily Hog and Pork Summary / National carcass base down 84 cents… Iowa-Minnesota carcass base down 66 cents… USDA reported carcass cutout values this afternoon fell 34 cents… hog prices were mixed and the pork market appears to be under pressure as the market absorbs big supply numbers, according to The Hightower Report…
Farm Commodity Newsletter/Iowa Farmer Today
Fri 7/31/2020 8:24 AM
Lean Hogs - While the export demand news remains strong, traders remain very nervous that production levels will remain high and this could keep pressure on domestic prices, according to The Hightower Report. Weights remain high and it may be difficult for the domestic market to absorb the hefty short-term supply of pork without lower prices.
Yesterday hog slaughter was estimated at 443,000 head. This is sharply lower than the previous day’s count of 477,000 head, Allendale said.
China eyes COVID testing in Brazil
China is asking for COVID-free meat exports from Brazil and is asking for massive testing for the virus in Brazil meatpacking plants, according to Steve Freed of ADM Investor Services. U.S. ports should be very active later in the year as aggressive Chinese bookings have boosted total corn and soybean export sales to modern-day and potentially all-time record levels for July.
Weekly pork sales were reported at 39,600 metric tons. China and Mexico accounted for most of the sales. Beef sales were reported at 29,500 MT, a marketing-year high. South Korea and Japan were the largest buyers, Allendale reported.
Thu 7/30/2020 4:39 PM
In weighted average negotiated prices for barrows and gilts, USDA reported;
National carcass base down 84 cents to $41.36/cwt.
National live was down $1.25 to $31.46
Iowa-Minnesota carcass base down 66 cents to $41.21
USDA reported carcass cutout values this afternoon fell 34 cents at $67.57/cwt.
The lean hog market has been in a good solid upward momentum-building technical rally for a few weeks and that is a healthy way for the market to work, according to Scott Shellady of the CME Group.
October hogs closed sharply lower on the day and the market is expected to see the largest increase in pork production from the second quarter into the third quarter, according to The Hightower Report.
USD helping livestock markets
The U.S. Dollar should be helping us out, according to Scott Shellady of the CME Group. That cheap dollar is providing a boon to the livestock markets.
Cattle and hog prices were mixed and the pork market appears to be under pressure as the market absorbs big supply numbers, according to The Hightower Report.
Grain Markets Mixed to Lower
Grain markets were mixed to lower. The U.S. Fed talked about keeping interest rates low this week and the virus impact on the global economy still offers resistance to commodities, according to ADM Investor Services.
Conflicting demand numbers added to the choppy tone of the market as weekly sales heavily favored soybeans while the U.S. saw huge flash sales of corn, according to Karl Setzer of Agrivisor.
The corn market lacked strength despite the ginormous Chinese corn purchase with positioning and weakness in outside markets providing pressure, according to CHS Hedging.
China booked its single biggest purchase of U.S. corn ever on the daily export wire today and the market response was pretty weak, perhaps due to good weather in the Midwest, according to The Hightower Report.
Large weekly export sales numbers out this morning gave the soybeans a bit of a boost to the upside, despite a lack of new Chinese business, according to CHS Hedging.
Some fear China will only buy basic needs from the U.S. until Brazil’s harvest in 2021. That, plus a higher U.S> crop than current USDA estimates would add to the carryout, according to ADM Investor Services.
The wheat market was mixed on the lack of supportive news and pressure from technical selling, according to CHS Hedging.
The weather has been dry in Argentina, where a La Nina weather event is building and that often brings drought to Australia, according to Karl Setzer of Agrivisor. On the other hand, there has been favorable weather in Australis, where timely rains have meant that Australia is now expected to raise a 26.7 million metric ton wheat crop in the 20-21 season.