[Fri]: In the hog market the jump in pork cutout values should help support better packer a further advance in cash prices, according to the Hightower Report… [Thurs]: National Daily Hog and Pork Summary / National carcass base up 65 cents… Iowa-Minnesota carcass base up $1.51… USDA reported carcass cutout values this afternoon rose $4.85 cents… Supply and demand are the key factors but the dollar is also helping to boost the hog market, according to Scott Shellady of the CME Group…

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Fri 10/16/2020 8:40 AM

 

Lean Hogs - In the hog market the jump in pork cutout values should help support better packer a further advance in cash prices, according to the Hightower Report.

 

December and February hog prices found Thursday strength, and with a triple-digit gain for December futures the spread shrank to $1.55, said Alan Brugler of Brugler Marketing. Hams and bellies were up the most, with $13.65 and $7.74 increases respectively.

 

Meat demand questioned

 

Traders are nervous that supply issues could turn burdensome with the highest weights in five years and slaughter levels likely to increase over the near term. In addition, demand factors are not as strong as normal for this time of the year, largely because of the virus, according to the Cattle Report.

 

Weakness in the China pig price along with the overbought condition of the market might suggest a short-term top is close at hand, according to the Hightower Report.

 

La Nina may hit South American crop

 

We might be getting some more business in corn and beans in South America. La Nina could actually reduce the crop down there, especially in southern Brazil and in Argentina, said Steve Freed of ADM Investor Services.

 

Russian interior wheat prices and Chinese interior corn prices have both hit new record highs this week. The last time anything close to this happened was after the 2012 U.S. drought, according to Jody Lawrence of Strategic Trading Advisors.

 

The Brazilian government is set to discuss a proposal that would temporarily eliminate the 8% tariffs on corn and soy imports from countries outside of the Mercosur trade bloc, which includes Paraguay, Uruguay & Argentina, said Joe Barker of CHS Hedging.

 

Thu 10/15/2020 4:42 PM

 

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

 

National carcass base up 65 cents to $63.63/cwt.

National live was down $2.93 to $50.76

Iowa-Minnesota carcass base up $1.51 to $64.45

 

USDA reported carcass cutout values this afternoon rose $4.85 cents at $64.45/cwt.

 

Supply and demand are the key factors but the dollar is also helping to boost the hog market, according to Scott Shellady of the CME Group.

 

December hogs closed sharply higher on the session and near the highs of the day, As a result, the market has hit the near term upside target, according to The Hightower Report.

 

Strong week continues for hogs

 

Hogs remained strong while cattle struggled in trading today, according to Stewart-Peterson.

 

It has been a strong week for lean hogs and farmers should take advantage of the rally, according to Scott Shellady of the CME Group. He says the technical are good but the speed of the market jump means there may be some bumps along the way as the market eventually stabilizes.

 

Wheat shoots up on dryness

 

Grains were able to shrug off overnight weakness early in today’s day trade and post moderate advances, according to Karl Setzer of Agrivisor.

 

The grain markets were stronger on demand and world crop concerns from excessive dryness, according to CHS Hedging.

 

Corn

 

Corn prices rose on dry weather concerns for South America and risking corn prices in China, according to CHS Hedging.

 

It is possible we may be seeing a shift in Chinese buying from soybeans to corn, according to Karl Setzer of Agrivisor In September alone the Chinese market rallied 14 percent.

 

Soybeans

 

Soybean prices traded higher on continued demand for U.S. beans, despite harvest activity and reports of beneficial moisture developing in Brazil, according to CHS Hedging.

 

Increased tension between the United States and China is a concern and trade guesses for sales to China are down from last week, according to ADM Investor services.

 

Wheat

 

December wheat closed sharply higher on the session and managed to take out its Oct. 8 high, according to The Hightower Report. It is already a tight window for both the United States and Russia to get the winter wheat crop germinated and established before dormancy.

 

Wheat traded higher on world weather and crop concerns, according to CHS Hedging. The Chicago December 20 contract rose to levels not seen since December of 2014.

 

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