[Weds]: Two trending factors contained hope for improvement, according to The Cattle Report. Another record for beef exports was set in 2020 at 14% of all beef sales. This occurred despite an extended period during plant shutdowns and slowdowns that beef was too high to ship for export. Periods at the end of the year saw our exports reach 25% of our beef production. The second factor will be a restoration in 2021 of full restaurant capacities as vaccinations hit arms of many citizens… [Tues]: Afternoon National Slaughter Cattle Review / Boxed beef cutout values this afternoon were sharply lower on Choice and steady on Select… Boxed beef cutout values this afternoon were sharply lower on Choice and steady on Select… Almost all commodity markets found support from the sharp break on the U.S. dollar and a strong up day for energy prices, said the Hightower Report…

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Wed 1/6/2021 8:37 AM

 

Cattle - Cattle futures had a nice day yesterday, said Joe Vaclavik of Standard Grain. They were up almost $3 on the close.

 

Futures markets are making sure those at risk for prices changes in cattle, are paying attention. Providing an explanation of why live cattle would be $3 lower one day and $3 higher the next is anybody's guess, according to The Cattle Report. These is little disagreement over the fact many smart traders look for all commodity prices to push higher all this year.

 

Future rosy for meat sales

 

Two trending factors contained hope for improvement, according to The Cattle Report. Another record for beef exports was set in 2020 at 14% of all beef sales. This occurred despite an extended period during plant shutdowns and slowdowns that beef was too high to ship for export. Periods at the end of the year saw our exports reach 25% of our beef production. The second factor will be a restoration in 2021 of full restaurant capacities as vaccinations hit arms of many citizens.

 

Lean hog calls are mixed. Yesterday’s market was mostly higher, except for weakness in February, according to Stewart-Peterson. Front-month futures are challenging the high established in October. Deferred contracts pushed to new contract highs while exhibiting strength.

 

Ag issues remain for 2021

 

Fundamentally, nothing has changed since we flipped the calendar to 2021, said Jacob Christy of The Andersons. “The world is still worried about food inflation; there remains concerns about South American production; and the U.S. dollar continues to slip to new lows,” he said.

 

Long-range Brazil and Argentina weather forecast calls for below-normal rains, said Steve Freed of ADM Investor Services. GFS model has rains over next few weeks although scattered and less than average.

 

Tue 1/5/2021 4:57 PM

 

Boxed beef cutout values this afternoon were sharply lower on Choice and steady on Select, USDA said.

 

Choice fell $3.97 to $205.90/cwt.

Select went down 4 cents to $196.49.

 

In negotiated cash sales in Nebraska, the USDA reported 169 head sold dressed at $172, with none sold live. In Iowa/Minnesota, none were sold live, and 80 head were sold dressed at $175.

 

February cattle opened slightly higher, managed to take out yesterday’s low before a rally all the way up above yesterday’s high and to the highest level since Dec. 29, said The Hightower Report.

 

Livestock finds support from USD

 

Almost all commodity markets found support from the sharp break on the U.S. dollar and a strong up day for energy prices, said the Hightower Report.

 

After the cattle complex closed lower yesterday, lean hogs were the lone bull today, said Scott Shellady of CME Group. The lean hog market is hanging in there despite skyrocketing price of inputs and a crazy start to the year.

 

Cattle futures reversed Monday’s losses, according to Steve Freed of ADM Investor Services.

 

Grains shoot higher Tuesday

 

Growing conditions in Brazil have improved with ample rains forecast over the next seven days, while close to home, drought continues to expand across the western half of the U.S. southern Plains, and the U.S. dollar continues to weaken, according to Total Farm Marketing.

 

Soybeans, soymeal, soyoil, corn and wheat traded higher and new buying pushed futures higher, said Steve Freed of ADM Investor Services. Late profit taking erased some of the day’s gains. U.S. stocks and crude went higher.

 

Corn

 

Brazil & China corn prices keep U.S. corn the cheapest globally available as corn futures surged 14% in second half of December, a move not seen in over 30 years, according to Total Farm Marketing.

 

Continued dry weather concerns in Argentina, a weaker dollar, and strength in soybeans and wheat were contributors to corn prices reaching their highest levels since summer 2019, said Stewart-Peterson. With the bean market decisively closing above the 13.00, it seems only logical to expect corn prices to move over 5.00.

 

Soybeans

 

U.S. farmers have sold as much as 90-95% of their 2020 crop, according to Total Farm Marketing. Next week, the USDA “could” lower carryout as low as 100 mb.

 

Trade looks for U.S. final 2020 soybean crop near 4,150 versus USDA 4,170, said ASD Investor Service’s Steve Freed. Dec 1 US soybean stocks could be near 2,800 mil bu vs 3,252 last year.

 

Wheat

 

U.S. hard red winter wheat is becoming more competitive and the nation’s grains and rising Black Sea and European wheat values are dragging wheat higher, according to Total Farm Marketing.

 

ADM Investor Services’ Steve Freed cited concern about U.S. and Russia 2020 crops. Russia and EU old crop exports pace is also helping prices.

 

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