[Weds]: In a bizarre turn, a few sellers in Texas and Kansas sold at $110 - steady with last week despite a $6 surge in the choice cutout, The Cattle Report said… Traders see the vaccine news as a longer-term positive force for the beef market, but there are still concerns that short-term demand might be limited, according to The Hightower Report… [Tues]: Afternoon National Slaughter Cattle Review / Boxed beef cutout values this afternoon were higher… In negotiated cash sales in Iowa/Minnesota, the USDA reported 38 head sold dressed at $170, with 995 sold live at $109. There were no reported sales in Nebraska… Traders see the vaccine news as a longer-term positive force for beef demand, but there are still concerns that the short-term demand might be limited, according to The Hightower Report…
Farm Commodity Newsletter/Iowa Farmer Today
Wed 11/18/2020 8:29 AM
Cattle - In a bizarre turn, a few sellers in Texas and Kansas sold at $110 - steady with last week despite a $6 surge in the choice cutout, The Cattle Report said. Some of the complaints of cattle feeders who are unable to participate in the wide margins held by the processors, are self-inflicted.
Traders see the vaccine news as a longer-term positive force for the beef market, but there are still concerns that short-term demand might be limited, according to The Hightower Report.
Cash cattle bids were moved up to $110 on Tuesday. That is equal to last week’s ending trade and bolsters expectations for higher trade later this week, Allendale said. Including Tuesday’s 6.77 for choice, wholesale beef has advanced 27.77 over the past 14 days.
Virus’s effect on meat sales unknown
This year will play out the dining patterns of Americans under siege from the coronavirus during the holiday season, according to The Cattle Report. Obviously, food service sales will be down, but unknown is the stay at home eating choices consumers will make this holiday season. Consumers tend to upgrade meat choices during the holidays and this is good for beef and especially good for certain beef cuts like ribs and loins. With less high end dining available or chosen by diners, how the choices for eating at home change will be a work in progress.
Pork processing has become erratic in recent days, Allendale said. Monday’s 491,000 head original estimate was revised down to 477,000 head. Will Tuesday’s rebound to normal 493,000 also be revised? For now, the market has shown little interest in this developing story.
SA weather may move grain markets
South American weather issues could shift markets, according to Jody Lawrence of Strategic Trading Advisors. “Until Mato Grasso in southern Brazil and Argentina get meaningful and widespread soaking rains this is the lead story,” he said.
Grain Markets were mixed overnight. Traders would like confirmation on rumors of further sales to China, Allendale said. On the other hand, there is a slight amount of renewed concern for South America’s crops into December. Additionally, widened concerns over the current virus situation have been balanced by carrots of hope for the coming vaccines.
Export sales to China or Unknown have slowed. The last sale for corn was 206,900 metric tons to Unknown on No. 6, according to Allendale. For soybeans, the last exciting sale was 123,000 tonnes to Unknown on Nov. 9. Traders continue to suggest consistent corn sales to China and more spaced-out soybean sales in the coming weeks.
The Chinese currency is at 30-month highs, and there is talk about China stockpiling crude and ag goods, said Steve Freed of ADM Investor Services. That could mean they will continue to support the soybean and maybe corn market.
Tue 11/17/2020 4:44 PM
Boxed beef cutout values this afternoon were higher on Choice and Select, USDA said.
Choice rose $6.77 to $233.72/cwt.
Select went up $1.61 to $213.96.
In negotiated cash sales in Iowa/Minnesota, the USDA reported 38 head sold dressed at $170, with 995 sold live at $109. There were no reported sales in Nebraska.
Live cattle futures were higher today and feeders were trading higher early in the day, according to Brugler Marketing.
Traders see the vaccine news as a longer-term positive force for beef demand, but there are still concerns that the short-term demand might be limited, according to The Hightower Report.
China continuing to rebuild herd
December hogs closed slightly higher on the session and the cattle market also closed moderately higher, according to The Hightower Report.
China continues to rebuild its hog herd following last year’s outbreak of African Swine Fever, according to Karl Setzer of Agivisor. In October the numbers showed an increase in Chinese herd inventory of 27 percent from October of 2019 and the sow herd grew by over 31 percent over that time.
Soybeans shoot higher
Soybeans and corn traded higher while wheat traded lower in today’s grain markets, according to ADM Investor Services.
Soybeans were once again the leader of the market with sizable advances today, according to Karl Setzer of Agrivisor. Demand has been high not only for soybeans but also for soy oil due to shortages of competing products such as palm oil.
Corn futures traded higher amid talk of higher demand for U.S. corn exports, according to ADM Investor Services.
March corn closed higher for the third session in a row as a weaker U.S. dollar and signs of firm expor demand helped, according to The Hightower Report. Exporters announced a sale of 195,000 tons of U.S. corn to Mexico.
Up, up and away is the way the soybean market has been going as prices continue to rise, but caution may be important, according to Scott Shellady of the CME Group. Just be careful, he says.
South American forecasts indicate dry conditions for the next couple of weeks with models showing a 62 percent chance Brazil will remain dry during that time, according to Karl Setzer of Agrivisor.
Wheat futures traded lower and managed funds were sellers, according to ADM Investor Services. Large world supplies limit the upside but dry conditions in several regions limit the downside.
Argentine wheat production has been hit hard with drought this year and anlysts now believe the crop will total only 16.7 million metric tons, which would be the smallest Argentine crop in five years, according to Karl Setzer of Agrivisor.