[Weds]: Packers have been bidding more aggressively than expected and wholesale pork gained 9.17 last week, Allendale said… 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… [Tues]: National Daily Hog and Pork Summary / National carcass base was 37 cents lower… Iowa-Minnesota carcass base was down $1… USDA reported carcass cutout values this afternoon were up 35 cents… Analysts continued to watch the rise in pork prices. “The continued advance in pork product prices has helped support the uptrend in the cash market and this leaves futures in a steady uptrend,” the Hightower Report said…

 

Farm Commodity Newsletter/Iowa Farmer Today

 

2020-09-09 am

 

Lean Hogs - Packers have been bidding more aggressively than expected and wholesale pork gained 9.17 last week, Allendale said.

 

Lean hog futures closed the first trade day of the short week with 7 to 60 cent gains, said Alan Brugler of Brugler Marketing. CME’s Fresh Bacon Index for the week was $10.26 higher to $151.77 and the highest since May.

 

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

 

In weighted average negotiated prices for barrows and gilts, USDA

reported;

 

        * National carcass base was 37 cents lower to $45.56/cwt.

        * National live was 19 cents higher to $37.22

        * Iowa-Minnesota carcass base was down $1.16 to $45.89

 

USDA reported carcass cutout values this afternoon were up 35 cents to

$80.91/cwt.

 

Analysts continued to watch the rise in pork prices. “The continued

advance in pork product prices has helped support the uptrend in the

cash market and this leaves futures in a steady uptrend,” the

Hightower Report said. “Pork cut-out values at midsession came in at

$87.08, up $6.52 on the day.”

 

“As mentioned last week, huge jumps in cutout values midday are often

a result of a flurry of export purchases,” Stewart-Peterson said.

“The customer is China. China pork imports in August were down 17%

from July, but China pork purchases for January through August are still

running 73% ahead of the same period last year.”

 

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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