[Tues]: A “short term peak” may be in line for the cattle market, The Hightower Report said. Short-term traders “might consider selling April cattle,” looking for a break back down near $120.22, they said… The winter storm sweeping through the country “will support prices,” Total Farm Marketing said. The impacts of the storm on weights will be positive and livestock movement will be slowed…
Farm Commodity Newsletter/Iowa Farmer Today
Tue 2/16/2021 8:42 AM
Cattle - Cattle futures are called higher today after the strong Friday close, Total Farm Marketing said. “This opens the door for additional money flow and technical buying to start the week,” they said.
A “short term peak” may be in line for the cattle market, The Hightower Report said. Short-term traders “might consider selling April cattle,” looking for a break back down near $120.22, they said.
Winter storm giving support
The winter storm sweeping through the country “will support prices,” Total Farm Marketing said. The impacts of the storm on weights will be positive and livestock movement will be slowed.
As the U.S. economy reopens, demand is still expected to increase for meat, adding to the positive tone for the futures market, The Hightower Report said. However, “the supply of market ready cattle and much higher than average weight may be difficult for the futures to hold onto the stiff premium.”
Grains open short week higher
Grains “were higher right from the get-go” when trade reopened last night, Katie Murphy and Brian Rydlund of CHS Hedging said.
Markets are watching weather as the country looks to bounce back from the polar vortex that has hit much of the Midwest and spring quickly approaches, CHS Hedging said.
Nationally, they noted the next major issue the Biden Administration is expected to tackle is the COVID relief bill going through congress.
With acreage ideas coming out around Thursday this week, “the market may be more sensitive than in recent years to the acreage estimates when they are released,” CHS Hedging said. They added that charts are “attractive” and growers “seem content to wait on further sales.”
Ethanol production has slowed down “to the tune of 1 mln barrels per day,” John Payne of Daniels Trading said. “Thankfully, this is going to end in the coming two weeks,” he said. “Early planting in the south should be starting within the next month.”
NOPA crush numbers will be released today with expectations for the “biggest January crush on record,” John Payne of Daniels Trading said. Guesses are for around 183.087 mln bushels, the third largest monthly crush on record.
“With the latest stocks-to-use ratio near a record low of around 3%, nearby contracts have more room to probe higher,” Total Farm Marketing said. “Soyoil futures are scoring new highs.”
Wheat markets are rallying overnight as weather issues are bringing production into question, CHS Hedging said. “Record cold temperatures have rekindled fresh ‘winterkill’ chatter for the U.S. wheat crops across our nation’s midsection,” they said.
The winter conditions helped wheat, but so did the drop in the U.S. Dollar and higher row crops, Total Farm Marketing said. “This and talk that their exports could be lower than USDA’s guess offers support,” they said. “Looking ahead, NOAA suggests some weakening of La Nina in April which spells normal spring weather across most of the U.S. plains and Midwest.”