[Fri]: The Fed Cattle Exchange held a second auction yesterday, Allendale said. This comes after Wednesday’s attempt saw good packer interest but no confirmed sales. Yesterday’s offering held six lots. Two of those sold at $110, one at $110.75 and one at $111… [Thurs]: Afternoon National Slaughter Cattle Review / Boxed beef cutout values this afternoon were higher on Choice and lower on Select… In negotiated cash sales in Nebraska, the USDA reported 6,542 head sold dressed at $172-174, with 7,711 sold live at $108-110. In Iowa/Minnesota, 9,455 head were sold live at $107-110, and 4,810 head were sold dressed at $170-172… There is concern that light packer interest may limit cash market gains, according to Stewart-Peterson…
Farm Commodity Newsletter/Iowa Farmer Today
Fri 11/13/2020 8:22 AM
Cattle - The Fed Cattle Exchange held a second auction yesterday, Allendale said. This comes after Wednesday’s attempt saw good packer interest but no confirmed sales. Yesterday’s offering held six lots. Two of those sold at $110, one at $110.75 and one at $111.
Argentina said China found traces of COVID-19 on packaging of South American country’s beef, Steve Freed of ADM Investor Services said.
Grain price increase affecting livestock
Relationships between grain and cattle are being ignored while grain prices soar, according to The Cattle Report. The implications for the meats is to increasing pricing of all meats. The concentration of trading interest has been focused on the front months with little attention to all of 2021 that should see all meat prices substantially higher.
The weekly actual slaughter report from USDA today revised meat production from two weeks ago, Allendale said. In the week of Oct. 31 steer carcass weights fell 5 pounds from the prior week to now 926 pounds. Heifer weights rose by 1 in this week to 848. Barrows and gilts were unchanged from the previous week at 215 pounds.
Grains mixed as harvest winds down
Grain markets are mixed after a strong USDA data led rally this week, Allendale said. With the WASDE report now behind us and U.S. harvest near complete, traders are analyzing price potential with weather, virus cases, and Chinese demand in mind.
With massive fund speculative length, bouts of profit taking will be a part of the daily trade on days when new bullish news does not surface, said Jody Lawrence of Strategic Trading Advisors. A busy and volatile week will end with the weekly export report and the entire trade still digesting just how tight world ending stocks could get without significant changes to the current production and demand landscape.
Rain in South America remains a concern. World Weather Inc. said, “Despite computer forecast models painting nice pictures of precipitation across much of Brazil and in portions of western Argentina, a very large part of South America has not seen ‘normal’ precipitation over the past six weeks.”
Thu 11/12/2020 4:33 PM
Boxed beef cutout values this afternoon were higher on Choice and lower on Select, USDA said.
Choice rose $3.66 to $226.50/cwt.
Select went down 22 cents to $208.24.
In negotiated cash sales in Nebraska, the USDA reported 6,542 head sold dressed at $172-174, with 7,711 sold live at $108-110. In Iowa/Minnesota, 9,455 head were sold live at $107-110, and 4,810 head were sold dressed at $170-172.
December cattle closed lower on the session and the premium structure is sparking some light selling, according to The Hightower Report.
There is concern that light packer interest may limit cash market gains, according to Stewart-Peterson.
Hogs up, cattle lower on COVID concerns
December hogs closed moderately higher on the session while December cattle closed lower on an inside trading day, according to The Hightower Report.
Coronavirus news still puts downward pressure on the cattle market, according to Stewart-Peterson.
Fund selling hits grains
Technical and fund selling was seen across the ag markets today. Corn and soybeans stepped back from contract highs made earlier in the week, according to CHS Hedging.
Grains were under pressure today as funds took profit. The most interest in the market remains the tight balance sheet forecast on soybeans, according to Karl Setzer of Agrivisor.
The corn market traded lower on a bout of technical trading but losses were limited by the smaller U.S. grain crop, according to CHS Hedging.
Ethanol production for the week ending Nov. 6 was 6.84 million barrels, an increase from the prvious week but still a 5 percent reduction on the year, according to Karl Setzer of Agrivisor.
Lack of new U.S. sales to China and talk of increased moisture in west Argentina and central Brazil offered resistance, according to ADM Investor Services.
The soy complex took a step back from profit taking and faced additional pressure from the lack of new Chinese purchases, according to CHS Hedging.
The wheat market traded lower on plentiful global supplies and increased competition in the world export arena, according to CHS Hedging.
The trade remains concerned about crop conditions in the Black Sea, the U.S. southern plains, and South America, according to ADM Investor Services.