[Tues]: 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… [Mon]: National Daily Hog and Pork Summary / National Carcass base up 58 cents… USDA reported carcass cutout values this afternoon rose $2.38… Despite strength in the cash market, lean hog futures continued to work lower today, according to Brugler Marketing and Management…
Farm Commodity Newsletter/Iowa Farmer Today
Tue 1/12/2021 8:53 AM
Lean hogs - Front month contracts “continue to struggle” in the lean hog market, as deferred contract are staying strong, Total Farm Marketing said. “As has been the case, higher grain prices may be long-term supportive on futures, limiting expansion due to higher feed cost. On the flipside, heavy production and available hogs for slaughter weigh on the market.”
Despite strong cash hog prices in China, futures in China saw some significant drops, falling 12% in September as the market saw an 8% drop yesterday. “Traders see a significant jump in pork production in China in the months ahead,” The Hightower Report 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
In weighted average negotiated prices for barrows and gilts, USDA reported;
National Carcass base up 58 cents to $55.52.
National live was not reported due to confidentiality.
Iowa-Minnesota carcass base at $52.17.
USDA reported carcass cutout values this afternoon rose $2.38 at $83.38.
Hogs were steady today but the trend is down, according to Virginia McGathey of the CME Group, who says the market is showing some vulnerability.
Despite strength in the cash market, lean hog futures continued to work lower today, according to Brugler Marketing and Management.
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.
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 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 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.