[Fri]: National Daily Hog and Pork Summary / National carcass base down 30 cents… USDA reported carcass cutout values this afternoon rose $2.01… The hog market also saw gains, with April posting contract highs, The Hightower Report said. “The continued strong advance in pork values plus expectations for a seasonal decline in slaughter into the spring has helped to support,” they said…
Farm Commodity Newsletter/Iowa Farmer Today
Fri 2/12/2021 4:17 PM
In weighted average negotiated prices for barrows and gilts, USDA reported;
National carcass base down 30 cents to $64.96/cwt.
National live was down $1.15 to $51.17
Iowa-Minnesota carcass base was reported at $67.14
USDA reported carcass cutout values this afternoon rose $2.01 to $88.87/cwt.
The U.S. Dollar and stock market are higher, giving support to the lean hog market, Total Farm Marketing said. “Rumors about the inflation outlook for 2021 & pandemic recovery lend support,” they said.
The lean hog market is “extremely overbought,” The Hightower Report said. “Open interest remains in a steep uptrend and is up more than 26,000 contracts this month.”
Livestock strong going into the weekend
It was a strong day for the live cattle market as they marched to a new contract high, The Hightower Report said. “Bitter cold weather is expected to increase death loss and also keep a sharp drop in weights,” they said.
The hog market also saw gains, with April posting contract highs, The Hightower Report said. “The continued strong advance in pork values plus expectations for a seasonal decline in slaughter into the spring has helped to support,” they said.
Markets mixed going into long weekend
Today was a mixed day in grains as the U.S. deals with freezing temperatures this weekend, Ami L. Heesch of CHS Hedging said. “U. S. stock market traded either side of unchanged as investors await results of the Stimulus aid,” she said.
Markets will be closed on Monday in honor of President’s Day, making for a shortened trading week.
Corn trade was choppy today ahead of the three-day weekend as pressure entered the market, Ami L. Heesch of CHS Hedging said. “Pressure came from lack of China purchases as they have been off the markets, enjoying their Lunar New Year holiday,” she said. “Losses were limited from tight U.S. stocks and pre-weekend positioning.”
Rains in South America and Argentine corn projections are weighing on prices, Total Farm Marketing said. Argentina’s estimates are for 48.5 mmt, compared to the USDA’s 47.5 mmt. However, planting is delayed, sitting at 8% compared to last year’s 40% mark.
Soybean estimates in Brazil are up slightly from USDA’s mark, according to CONAB. CONAB has the estimate at 133.8 mmt, compared to USDA’s 133 mmt estimate. “March soybean oil is pushing near contract highs again,” Total Farm Marketing said.
There is concern about African Swine Fever in the Chinese hog herd “may have weighed on soymeal,” ADM Investor Services said.
“The wheat market stirred about on worries about the deep-freeze temperatures moving across the winter wheat areas this and next week,” Ami L. Heesch of CHS Hedging said. “There are forecasts for snowfall across much of Oklahoma and the northern portion of Texas, which could help protect the wheat in those areas.”
Despite the cold temperatures, the crop could be strong, ADM Investor Services said. “Most feel the crop has seen mostly good weather and will be hardy which could limit the impact on the crop,” they said.