[Mon]: USDA’s monthly supply/demand report last week added a small piece of positive news for hog futures by lowering their 2021 pork production estimate by 120 million pounds (from 28.565 billion to 28.445 billion), Allendale said… Germany has found African swine fever in a wild boar, and the impact could be significant, The Hightower Report said. Japan, China and South Korea banned imports from Germany over the weekend. Two-thirds of German exports go to China… [Fri]: National Daily Hog and Pork Summary / National carcass base up $1.72… Iowa-Minnesota carcass base down $1.20… USDA reported carcass cutout values this afternoon rose 39 cents… Hogs bumped up on confirmation of an African swine fever case Germany and the hog market right now is very strong, according to Virginia McGathey of the CME Group…

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Mon 9/14/2020 8:36 AM

 

Lean Hogs - USDA’s monthly supply/demand report last week added a small piece of positive news for hog futures by lowering their 2021 pork production estimate by 120 million pounds (from 28.565 billion to 28.445 billion), Allendale said. In this number, the agency sees Q1 at 4.8% under last year.

 

The largest buyer of U.S. pork this week was Mexico at 8,854 metric tons, followed by China at 8,301 and Japan at 5,579, according to The Hightower Report. China has the largest commitments for 2020 at 599,000 tons, followed by Mexico at 407,00 and Japan and 174,000.

 

ASF appears in Germany

 

Germany has found African swine fever in a wild boar, and the impact could be significant, The Hightower Report said. Japan, China and South Korea banned imports from Germany over the weekend. Two-thirds of German exports go to China.

 

Cattle fundamentals look sloppy for the cash market, according to The Hightower Report. But the surge higher in hogs continues to provide overflow support.

 

Fri 9/11/2020 4:26 PM

 

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

 

National carcass base up $1.72 to $54.40/cwt.

National live was up $2.07 to $40.75

Iowa-Minnesota carcass base down $1.20 to $53.37

 

USDA reported carcass cutout values this afternoon rose 39 cents to $81.25/cwt.

 

Hogs bumped up on confirmation of an African swine fever case Germany and the hog market right now is very strong, according to Virginia McGathey of the CME Group.

 

Hog prices are trading far above their 20 and 100 day moving averages, though volatility is high, according to Mike Seery of Seery Futures.

 

Livestock markets steady to higher

 

The USDA also updated its beef and pork balance sheets today. U.S. beef production in the 2020-21 marketing year is now pegged at 3.14 billion pounds, 244 million pounds more than this year, according to Karl Setzer of Agrivisor. Pork production for that 2020-21 marketing year is now estimated at 7.65 billion pounds, up 103 million pounds from the current year.

 

Cattle were steady and hogs were up on the day, according to Virginia McGathey of the CME Group.

 

Grain markets react to USDA numbers

 

The USDA issued its supply and demand report as well as its latest production report today and the corn yield is now estimated at 178.5 bu. per acre and the crop size at 149 billion bushels while the soybean yield is now estimated at 51.9 bu. per acre and the crop at 4.31 billion bushels, according to Karl Setzer at Agrivisor.

 

Those USDA numbers were pretty much what the market expected, according to Steve Freed of ADM Investor Services.

 

Corn

 

Corn prices were higher on borrowed strength from the soy complex, along with reductions in yield from USDA, according to CHS Hedging.

 

Corn prices were firm due to strong demand and despite a slightly bearish USDA report, according to Virginia McGathey of the CME Group.

 

Soybeans

 

Soybean prices traded higher on demand and frost worries. Additional strength came from a lower yield forecast by USDA, according to CHS Hedging.

 

Now that the monthly data has been released, trade will start to shift its attention to the harvest and to items such as the start of the Brazilian soybean planting season, according to Karl Setzer of Agrivisor.

 

Wheat

 

Wheat slipped and ended at its lowest level since Aug. 27, according to The Hightower Group.

 

The wheat market finished lower on a lack of fresh supportive news, according to CHS Hedging. Global supplies grow while U.S. supplies stand still. Mills are flush with wheat and the U.S. is not competitive in the world export arena.

 

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