[Tues]: “We view the cattle market still trending higher overall, but Monday’s activity signaling a test of support levels,” Total Farm Marketing said. “Deferred contracts hold good strength, pushing to new contract high closes”… [Mon]: Afternoon National Slaughter Cattle Review / Boxed beef cutout values this afternoon were higher on Choice and lower on Select… In negotiated cash sales in Iowa/Minnesota, 549 head were sold live at $109-111, and 78 head were sold dressed at $174. There were no reported sales in Nebraska… Weights remain heavy and packers don’t want heavy cattle, according to ADM Investor Services. That is keeping a lid on futures prices…

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Tue 1/12/2021 8:53 AM

 

Cattle - “We view the cattle market still trending higher overall, but Monday’s activity signaling a test of support levels,” Total Farm Marketing said. “Deferred contracts hold good strength, pushing to new contract high closes.”

 

The market has been trading up near December highs as optimism that a vaccine will improve demand once it is widespread, The Hightower Report sad. “However, the short-term weak demand with the struggling restaurant and food service business is a reality that the market is facing,” they said.

 

Cattle, hogs concerned about supply

 

In the technical picture, Cattle have been sitting sideways since November, Allendale said. “We’ve been oscilating around the 100-day moving average,” and it might take something dramatic for trade to move off those numbers.

 

The February hogs contract was lower for the fifth session in a row, “but the short-term cash news appears to be improving with the impressive jump in pork values over the last week,” The Hightower Report said.

 

Traders looking to report

 

The big USDA report day is finally here, meaning grain markets will get some direction when the production and stocks data is released at 11 a.m. CT, Ami L. Heesch of CHS Hedging said.

 

Currently, most grain markets are higher on the anticipation of smaller U.S. and world supplies.

 

The market “could get absolutely wild today,” Allendale said in their wake-up report this morning. The market is finding support ahead of the big USDA numbers.

 

Mon 1/11/2021 4:32 PM

 

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

 

Choice rose 89 cents to $207.69/cwt.

Select fell 95 cents to $195.74.

 

In negotiated cash sales in Iowa/Minnesota, 549 head were sold live at $109-111, and 78 head were sold dressed at $174. There were no reported sales in Nebraska.

 

Concern about food service demand put pressure on the cattle market, although feeders did bounce back a bit, according to Virginia McGathey of the CME Group.

 

Weights remain heavy and packers don’t want heavy cattle, according to ADM Investor Services. That is keeping a lid on futures prices.

 

Livestock mixed to lower on Monday

 

The livestock markets were mostly lower, according to The Hightower Report. February cattle closed sharply lower while March feeder cattle were up. February lean hogs were also lower.

 

Cattle did fall a bit while hogs were mostly steady today, according to Virginia McGathey of the CME Group. The trend is down right now.

 

Trade volatile before report day

 

Fund positioning was noted throughout the day as the market waited until tomorrow’s final production numbers for the 2020 crop, according to CHS Hedging. The U.S. and world balance sheets will be updated in that report.

 

Futures trade was volatile today ahead of tomorrow’s monthly WASDE report and there was some profit-taking, according to Karl Setzer of Agrivisor. Widespread rains in South America also put pressure on the market.

 

Corn

 

The corn market traded lower on a bout of positioning ahead of the USDA report and also due to a strong U.S. dollar, according to CHS Hedging.

 

The Argentine government lifted a corn export ban and instituted a 30k metric ton daily cap instead, according to Total Farm Marketing.

 

Soybeans

 

Soybeans traded lower, thanks in part to rains in parts of north and central Argentina and eastern Brazil, according to ADM Investor Services.

 

There is some positive momentum but the market is in overbought territory so some caution is warranted, according to The Hightower Report.

 

Wheat

 

Wheat traded lower on a stronger U.S. dollar and a bout of profit taking prior to tomorrow’s USDA report, according to CHS Hedging.

 

March wheat closed lower for the fourth session in a row and experienced an outside trading day, according to The Hightower Report.

 

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