[Tues]: According to The Hightower Report, “Traders will monitor beef prices closely over the near term as further weakness might be seen as a bearish development”… [Mon]: Afternoon National Slaughter Cattle Review / Boxed beef cutout values this afternoon were higher… In negotiated cash sales in Nebraska, there was no reportable trade, the USDA said. In Iowa/Minnesota, there were 1,563 head sold live for $107, and 240 head sold dressed for $168-169. “We are entering what would normally be a strong demand period when restauranteurs and caterers begin to make advance purchases for the holidays, but this year that kind of business is expected to be down sharply because of Covid19,” the Hightower Report said… “A resumption of retail strength will be key going forward to maintain cash strength,” Stewart-Peterson said…

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Tue 10/13/2020 9:01 AM

 

Cattle - There’s really not much of anything happening the in the cattle market, said Mike Lung of Allendale this morning. “It’s just moving sideways.”

 

According to The Hightower Report, “Traders will monitor beef prices closely over the near term as further weakness might be seen as a bearish development.”

 

Seasonal demand likely lower

 

According to The Hightower Report this morning, “We are entering what would normally be a strong demand period when restauranteurs and caterers begin to make advance purchases for the holidays, but this year that kind of business is expected to be down sharply because of Covid19.”

 

Pork imports for the first nine months of the year reached 3.29 million tons, up 132.2% from last year. “In the long run, pork imports are likely to push lower as China pork production expands rapidly,” The Hightower Report said this morning.

 

Mon 10/12/2020 4:49 PM

 

Boxed beef cutout values this afternoon were higher on Choice and Select, the USDA said.

 

Choice was up 56 cents to $214.62/cwt.

Select rose 52 cents to $200.34.

 

In negotiated cash sales in Nebraska, there was no reportable trade, the USDA said. In Iowa/Minnesota, there were 1,563 head sold live for $107, and 240 head sold dressed for $168-169.

 

“We are entering what would normally be a strong demand period when restauranteurs and caterers begin to make advance purchases for the holidays, but this year that kind of business is expected to be down sharply because of Covid19,” the Hightower Report said. "The average dressed steer weight reached its highest levels since 2015 last week, which is another concern.”

 

“A resumption of retail strength will be key going forward to maintain cash strength,” Stewart-Peterson said. “Retail values are dealing with large production as carcass weights are still running well over last year’s weight, adding additional beef production to the cooler. The feeder market added selling pressure as contracts struggled early, but rallied to finish mixed Monday.”

 

Lower trade hits livestock

 

Cattle markets were lower, with concerns about how Covid-19 will impact holiday demand. “December cattle closed sharply lower on Monday after trading to their lowest level since September 23,” the Hightower Report said. “The boxed beef cutout was $1.15 higher in the morning, but this was after it ended Friday at its lowest level since August 13.”

 

Hogs moved lower as well to start the week. “December hogs closed lower on Monday after failing to take out last week's highs,” the Hightower Report said. “The market is likely found pressure from the steep selloff in cattle. It is short term overbought, leaving it vulnerable for a correction.”

 

Grains drop to open week

 

Crop prices moved lower on harvest progress and mostly favorable weather. “The row crops were weaker on decent harvest activity over the weekend,” Ami Heesch, with CHS Hedging, said. “Funds are said to be long in wheat, KC wheat, corn and soybeans. Today was a USDA holiday so there were no news flashes of goods sold to China or other destinations.”

 

“(Soybean) Export inspections were not released today in observance of Columbus Day,” Stewart-Peterson said. “Today’s high price on futures contracts did not exceed Fridays, so while the market finished with sharp losses, there were no reversals posted leaving the trade with just a down day. November futures closed at its lowest level in four sessions.”

 

Corn

 

“Corn prices followed the soybean market lower on favorable harvest weather conditions,” Ami Heesch, with CHS Hedging, said. “There were no inspections numbers out this morning, or crop progress number this afternoon. The corn harvest is on big time and the moisture levels are mostly below 15%.”

 

“Corn traded lower,” Steve Freed, with ADM Investor Services, said. “Fact USDA was closed today due to holiday limited new news for the bulls. Most look for US corn harvest to be near 45-50 pct done. CZ had an inside day and erased all of Fridays USDA report gains. Tighter US 2020/21 supply and demand outlook and uncertain Argentina weather could still offer support.”

 

Soybeans

 

“Soybeans trade sharply lower,” Steve Freed, with ADM Investor Services, said. “…Some feel uncertainty over South America weather and record US Oct-Jan soybean exports could keep SX in a 10.10-10.80 range. US 2020/21 soybean supply and demand has tightened to the point South America and US will need good crop to satisfy demand.”

 

“Soybean prices stepped back on lack of fund buying after a heavy harvest weekend and decent farmer selling,” Ami Heesch, with CHS Hedging, said. “Prices appeared to be victims of profit taking. There was some disappointment that there were no sales flashes announced this morning with the USDA on holiday. Prices drew additional pressure from weakness in energy markets.”

 

Wheat

 

Wheat markets did manage to go higher on concerns about the global crop. “Wheat prices bucked the trend and traded higher on world crop concerns,” Ami Heesch, with CHS Hedging, said. “Dryness continues in the Black Sea Region and the US Southern Plains. Algeria is in for optional origin wheat with Russia being allowed in the game.”

 

“All the supportive news for the bulls is still in play – Russia is still too dry with no rain on the horizon this week,” Stewart-Peterson said. “Same story goes for the U.S. plains with the expectation of conditions worsening. We’ll see tomorrow where planting progress is, but one would assume with the dry weather it should be significantly higher than last week.”

 

iowafarmertoday.com