[Thurs]: Expectation is for the market to absorb the increased pork supply in the short term, The Hightower Report said. “The rally to the October highs has been driven by strong demand for U.S. pork from China,” they said… [Weds]: National Daily Hog and Pork Summary / National Carcass base down $2.34… USDA reported carcass cutout values this afternoon rose 2 cents… February hogs were down and the focus remains on long-term issues, according to Total Farm Marketing…
Farm Commodity Newsletter/Iowa Farmer Today
Thu 1/7/2021 8:36 AM
Lean hogs - Expectation is for the market to absorb the increased pork supply in the short term, The Hightower Report said. “The rally to the October highs has been driven by strong demand for U.S. pork from China,” they said.
Resistance for the February contract is at $71.07 and support at $68.67, The Hightower Report said.
Cattle higher, hogs lower to open
Calls are “steady to higher” ahead of what is expected to be a quiet morning for cattle futures, Total Farm Marketing said. “Cash is still subdued for the week,” they noted.
Meanwhile, hogs are expected to open lower ahead of the weekly export sales report, TFM said. “Charts saw negative reversals posted across the board which could lead to additional technical selling this morning.”
Markets lower to open Thursday
After a “tumultuous” Wednesday in the U.S., Joe Biden was certified as the next President of the United States, CHS Hedging said. Current president Donald Trump has acknowledged the win overnight and promised an orderly transition of power.
The next big milestone for the grain markets comes in Tuesday’s Supply and Demand report, which is expected to point the market to its next destination.
Wed 1/6/2021 5:25 PM
In weighted average negotiated prices for barrows and gilts, USDA reported;
National Carcass base down $2.34 to $52.35.
National live was not reported due to confidentiality.
Iowa-Minnesota carcass base at $52.2 with change not reported due to confidentiality.
USDA reported carcass cutout values this afternoon rose 2 cents at $77.65.
Ham prices were lower which may be an indicator of lower exports, according to ADM Investor Services.
February hogs were down and the focus remains on long-term issues, according to Total Farm Marketing.
Hogs, cattle dealing with pressure
February hogs opened higher and traded above yesterday’s highs but the stiff premium of futures to the cash market helped spark selling and the market closed sharply lower on the day, according to The Hightower Report.
Front month live cattle futures were mixed early in the day while front month feeder cattle were down, according to Brugler Marketing and Management.
Corn, soy continue rise
The agricultural markets continued to drive higher on technical support and hopes of a bullish USDA report, according to CHS Hedging. The macro economic markets were also higher on news that the U.S. Senate may flip to Democrat and that could mean more COVID-19 aid.
Managed money continued to flow into the grain markets giving sharply higher values early in the trading session, according to Karl Setzer of Agrivisor. There is little technical resistance to the rally.
The corn market found support yet again today with the soybean market, although the ethanol sector continues to talk about plants shutting down due to poor margins, according to CHS Hedging.
Corn futures traded higher and managed funds are adding to their already record long position, according to ADM Investor Services.
It was another impressive close to the market today as the funds continue to buy and drive the market higher, according to CHS Hedging.
Soybean stocks are expected to tighten to the lowest level in 18 years, according to Karl Setzer of Agrivisor. Harvest is starting to progress in Brazil but that does not mean there will be immediate exports from there.
The wheat market slid on a slope through the day as the technical support from corn and beans seemed to run out, according to CHS Hedging.
The higher U.S. dollar and higher U.S. equities may have weighed on wheat prices today, according to ADM Investor Services.