[Fri]: Pork export sales were strong at 60,195 metric tons, Allendale said. The sale to all locations was the best of the year so far. It was 98% over last year… [Thurs]: National Daily Hog and Pork Summary / National carcass base up $1.37… Iowa-Minnesota carcass base up $3.57… USDA reported carcass cutout values this afternoon rose 18 cents… Strong export sales plus a continued advance in pork cut-out sales pushed the market up to the highest level since Jan. 24, according to The Hightower Report…
Farm Commodity Newsletter/Iowa Farmer Today
Fri 10/9/2020 8:26 AM
Lean Hogs - Pork export sales were strong at 60,195 metric tons, Allendale said. The sale to all locations was the best of the year so far. It was 98% over last year.
News of a case of African swine fever reported in South Korea, the first since 2019, could be seen as a positive development, but the infection is assumed to have come from a wild boar, The Hightower Report said. As long as the case is controlled, it should have little impact on the market.
Hormel bans hog growth drug
Hormel Foods is eliminating a growth drug banned by China from its hog supply, the company said, joining rivals that are seeking to increase meat sales to Chinese buyers grappling with a pork shortage. “We have been actively monitoring the changing global market dynamics for several years and believe this decision will further position us to meet growing international demand,” Hormel said.
The supplies of cattle are transitioning from oversupply to more moderate supplies caused by the light placement months of March and April, according to The Cattle Report. Sellers will find more bargaining leverage as we move forward in the coming weeks. Traders will be closely watching the quality grade that has been declining and the carcass weights that has risen the past two weeks but should level or decline moving forward.
Traders eye USDA report
Grain markets are higher overnight as traders look to this morning’s USDA report for the latest in supply and demand, Allendale said. Once the market digests that data, focus will turn back to harvest progress and weather concerns.
There will be a lot of impactful data today, and a lot of potentially big shifts in the data today, said Jacob Christy of The Andersons. “Eyes will be on U.S. production, exports and adjustments to the Chinese import number,” he said.
Some welcome rain fell over about a third of Brazil’s driest growing areas with more forecast for the next seven to 10 days, said Jody Lawrence of Strategic Trading Investors. Russian weather remains too dry, but qualifying potential yield losses for a winter crop in October is a challenge. Hurricane Delta landfall and movement across the Southeast will halt harvest but the Midwest will remain dry for a speedy harvest.
Thu 10/8/2020 5:06 PM
In weighted average negotiated prices for barrows and gilts, USDA reported;
National carcass base up $1.37 to $65.11/cwt.
National live was down 35 cents to $49.91
Iowa-Minnesota carcass base up $3.57 to $66.47
USDA reported carcass cutout values this afternoon rose 18 cents at $95.36/cwt.
Hogs were up but were volatile today, according to Scott Shellady of the CME Group, who says that he likes the way the demand story is opening up.
Strong export sales plus a continued advance in pork cut-out sales pushed the market up to the highest level since Jan. 24, according to The Hightower Report.
Exports boost up hogs
There was very good news in lean hogs as they closed higher today while cattle closed moderately lower today, according to Scott Shellady of the CME Group.
Hog futures were up around news of sharply higher export sales to China, according to Stewart-Peterson.
Grains down despite export sales
Corn, soybeans and wheat all closed down today. Early strength after weekly U.S. export sales were better than expected were erased by a wave of long liquidation before tomorrow’s USDA report, according to ADM Investor Services.
No matter what is in that USDA report we may be quick to see market attention shift back to actual harvest data rather than estimates, according to Karl Setzer of Agrivisor.
Production numbers in tomorrow’s WASDE report are expected to be little changed from current figures and the average guess on corn is for a yield of 177.9 bu. Per acre, according to Karl Setzer of Agrivisor.
December corn closed slightly lower on the session but well off the peak. Early buying drove the market up before it slipped later in the day, according to The Hightower Report.
Soybeans traded lower and managed funds are long near a record and China will be back from its national holiday tonight, according to ADM Investor Services.
Export sales news was very strong and pushed the market early, according to The Hightower Report.
We are starting to see conflicting opinions on the Russian wheat crop and potential sales, according to Karl Setzer of Agrivisor. Russia has announced it may place quotas on wheat exports next year but is also upping its yearly wheat export forecast.
Wheat closed lower and some linked that to liquidation before Friday’s report. Dry weather in the United States and in Russia and Argentina are factors in the market, according to ADM Investor Services.