[Weds]: June hogs and beyond have avoided a pullback and are making new contract highs, Stewart-Peterson reported.
Lean hog futures closed Tuesday with 2 to 65 cent gains. The late summer contracts had triple digit gains, said Alan Brugler of Brugler Marketing… [Tues]: National Daily Hog and Pork Summary / National carcass base down 52 cents… USDA reported carcass cutout values this afternoon fell 14 cents… The monthly USDA reports saw 2020 pork production at 28.296 billion lbs. 2021 production was increased by 55m lbs to 28.565 billion. That came mostly via a Q1 and Q4 revision, said Brugler Marketing…
Farm Commodity Newsletter/Iowa Farmer Today
Wed 1/13/2021 8:19 AM
Lean Hogs - June hogs and beyond have avoided a pullback and are making new contract highs, Stewart-Peterson reported.
Lean hog futures closed Tuesday with 2 to 65 cent gains. The late summer contracts had triple digit gains, said Alan Brugler of Brugler Marketing.
Meat demand in question
While restaurant and food service demand is likely to surge into the spring, the short-term demand tone remains weak, according to The Hightower Report.
Higher grain will impact all meat products and prices and are a sign of impeding inflation risk. They also provide generous incentives to farmers to ratchet up corn production this spring, according to The Cattle Report.
Report fires up grain markets
USDA has riled the corn and bean markets to levels not seen since 2013, said Ami Heesch of CHS Hedging. The corn market soars on smaller than expected supplies, dryness in Argentina and demand.
We are in fresh five- to six-year highs in all grain markets following yesterday’s report, said Joe Vaclavik of Standard Grain.
Tue 1/12/2021 4:31 PM
In weighted average negotiated prices for barrows and gilts, USDA reported;
National carcass base down 52 cents to $55.00/cwt.
National live price was $43.08 with no comparison.
Iowa-Minnesota carcass base at $54.633
USDA reported carcass cutout values this afternoon fell 14 cents to $79.19/cwt.
China’s appetite for pork will be key to 2021 demand, said Total Farm Marketing.
The monthly USDA reports saw 2020 pork production at 28.296 billion lbs. 2021 production was increased by 55m lbs to 28.565 billion. That came mostly via a Q1 and Q4 revision, said Brugler Marketing.
Restaurant demand expected to surge soon
The U.S. stock market rose slightly as investors take caution from tensions in Washington ahead of earnings reports on Friday and the swearing in of President Elect Joe Biden Jan. 20, reports CHS Hedging.
Restaurant and food service demand is expected to surge in spring, but tone for short-term demand is weak, said The Hightower Report. The limit up trade for corn helped spark aggressive selling that drove the cattle market to its lowest point since Nov. 20.
WASDE report bullish as grains surge
Today’s WASDE report was “bullish across the books,” said Daniel Trading’s John Payne. For corn, the big surprise was the projected yield per harvested acre in 2020/2021, of 172 bushels, down from November’s estimate of 175.8, adding support for the market.
Payne called it “the same deal” on soybeans, with less aggressive cuts, from a 50.7 yield estimate in November to 50.2. “Tremendous changes in the fundamental set up, sets us up for a fun year ahead, just given weather and demand,” Payne said.
Northern Argentina received notable rain over the weekend, but more dryness is expected. Meanwhile that country’s farmers continue their sales strike on corn despite their government’s lifting its export ban, said Total Farm Marketing.
USDA dropped US corn carryout to 1,552 but also dropped demand. We are not slowing demand yet and some are using a carryout now closer to 1,250, said ADM Investor Services.
Growing conditions are said to be very good in most of Brazil, but the southern regions are still drier than they would like, says Total Farm Marketing. Meanwhile, Brazil’s soybean harvest is underway but at a slow pace.
USDA raised China corn imports to 17.5.USDA also dropped US soybean carryout to 140 mil bu from 175. They raised exports 30 and crush 5. Some feel demand could be higher, said ADM Investor Services.
WASDE estimates for all winter wheat.was 31.99 million, up 1.5 million acres total from a year ago. Increases in wheat and soybeans generally go hand in hand, said John Payne of Daniels Trading.
Wheat rallied on talk of Russia doubling their wheat export tax and fact Egypt passed on the wheat tender, according to ADM Investor services.