[Weds]: Cash cattle averaged $103.12 last week according to the All Grades section on the well-known 5 Area report. The previous week averaged $105.09. This was the lowest cattle trade in four weeks. On the positive side, this would suggest we didn’t move as many of those $102’s last week as we expected, according to Allendale… [Tues]: Afternoon National Slaughter Cattle Review / Boxed beef cutout values this afternoon were lower… In negotiated cash sales in Nebraska, there was no reportable trade, the USDA said. In Iowa-Minnesota, there were no reported live sales, and 38 head sold dressed for $161. “Cattle slaughter last week was up 10.9% from the same week last year and production was up 13.1% from the same week last year, though the huge increases were due to the Labor Day holiday last year,” Stewart-Peterson said…

 

Farm Commodity Newsletter/Iowa Farmer Today

2020-09-09 am

 

Cattle - Stocker and feeder prices are adjusting to the larger supplies currently moving into mostly full feed yards, according to The Cattle Report. Prices are lower across all regions and classes of cattle.

 

Cash cattle averaged $103.12 last week according to the All Grades section on the well-known 5 Area report. The previous week averaged $105.09. This was the lowest cattle trade in four weeks. On the positive side, this would suggest we didn’t move as many of those $102’s last week as we expected, according to Allendale.

 

Meat sales looking strong

 

The continued strong surge in pork cut-out values, plus the fact that producers remain current with marketing's are factors which could keep the short-term trend up, The Hightower Report said. Longer-term, the market will need to see continued very strong exports to hold pork prices at a high level during the period of increasing slaughter from mid-September through mid-November.

 

Unemployment is declining and with the decline and people headed back to work, more normalized daily lives are reported with diets and eating patterns returning to pre-virus levels, according to The Cattle Report. Beef has proven itself resilient and consumers may have changed sources of beef from restaurants to the home, but people find solace and security in choosing a beef product regularly.

 

2020-09-08 pm

 

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

the USDA said.

 

        * Choice was down $1.03 to $224.82/cwt.

        * Select was 84 cents lower to $208.46.

 

In negotiated cash sales in Nebraska, there was no reportable trade, the

USDA said. In Iowa-Minnesota, there were no reported live sales, and 38

head sold dressed for $161.

 

“Cattle slaughter last week was up 10.9% from the same week last year

and production was up 13.1% from the same week last year, though the

huge increases were due to the Labor Day holiday last year,”

Stewart-Peterson said. “October live cattle made their highest close

today since Aug. 27 and were able to close back above the 10-day moving

average resistance.”

 

Traders saw some good signs in the market’s technical information.

“The market now above the 60-day moving average suggests the

longer-term trend has turned up,” the Hightower Report said. “The

daily stochastics have crossed over up which is a bullish indication.

The stochastics indicators are rising from oversold levels, which is

bullish and should support higher prices.”

 

Oversold Market Helps Cattle

 

“December cattle closed sharply higher on the day and closed near the

highs of the day,” the Hightower Report said. “The buying pushed the

market up to the highest level since Aug. 27. The market opened lower

but talk of the oversold condition of the market helped to spark buying

support.”

 

Hog markets climbed slightly higher Tuesday, supported by rising pork

product prices. “December hogs closed slightly higher on the day and

experienced the highest close since May 4,” the Hightower Report said.

“The market traded inside of Friday's range but did manage to trade at

Friday's highs.”

 

Expect Yield Reductions

 

“Can exports keep prices moving higher?” Stewart-Peterson said.

“Is yield drop a big enough factor due to a dry August? Only time will

tell. Today was impressive as the dollar was firmer and energy prices

sharply lower. Funds continue to be buyers as was indicated by

Friday’s Commitment of Traders report showing funds net long 162,000

contracts.”

 

“The row crops moved higher on crop worries and an expected reduction

in yield and production in this Friday’s USDA report,” Ami Heesch,

with CHS Hedging, said. “Wheat prices struggled with increased

production estimates for Russia and Australia, along with a weaker US

dollar and improving weather conditions for Argentina.”

 

Corn

 

A number of factors helped corn markets move higher on Tuesday. “The

corn market got off to a bumpy start, with support coming from expected

yield decline in Friday’s USDA report,” Ami Heesch, with CHS

Hedging, said. “Prices turned higher on, ideas of declining crop

conditions, decent weekly export sales and the USDA sale

announcement.”

 

“Today was impressive as the dollar was stronger and energy prices

sharply lower,” Stewart-Peterson said. “This adds to the idea that

despite what should be adequate carryout at an average estimate of 2.451

billion bushels for Friday’s Supply and Demand report, buying by funds

continues. Today’s weaker energy markets and firmer dollar couldn’t

hold corn futures down.”

 

Soybeans

 

Soybeans saw support from a variety of sources. “The soybean market

traded both sides overnight and early in the morning,” Ami Heesch,

with CHS Hedging, said. “Prices garnered strength from decent weekly

export sales, crop worries and this morning’s announcement of a

ginormous sale of US soybeans to China.”

 

“Soybeans traded higher,” Steve Freed, with ADM Investor Services,

said. “Managed funds continued to buy soybean. USDA announced new

sales to China. Good weekly soybean exports also offered support. Talk

that USDA will drop US soybean rating to 64 pct good/ex versus 66 last

week also helped prices.”

 

Wheat

 

“The wheat market was on the defensive despite decent weekly export

inspections,” Ami Heesch, with CHS Hedging, said. “Prices were

pressured from a stronger US$, plentiful world supplies of wheat with

increased production estimates for Australia and Russia. Egypt’s GASC

is expected to be in the market for optional origin wheat this week.”

 

“Wheat futures traded lower,” Steve Freed, with ADM Investor

Services, said. “Some link the selloff to estimates that the 2020

wheat crop near 28.9 mmt versus USDA 26.0. They also estimated exports

near 20.0 mmt versus 9.5 last year. Higher US Dollar, lower US stocks

and lower energy prices may have also Weighed on wheat futures.”

 

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