[Weds]: CBP sold 900 cattle yesterday in their sealed bid format at slightly over $116 - one higher than the previous week's market in the south, according to The Cattle Report. The cash market needs more cattle in the cash pool and it needs reporting on cattle that trade each day of the week but are unreported… [Tues]: Afternoon National Slaughter Cattle Review / Boxed beef cutout values this afternoon were higher… There were no reported negotiated cash sales in Iowa/Minnesota or Nebraska, USDA said… Short-term cash news “remains positive” in the cattle market, despite today’s mixed to lower trading day,” The Hightower Report said..

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Wed 3/31/2021 8:16 AM

 

Cattle - Traders see short-term demand indicators being as good as they get, according to The Hightower Report. Demand is increased by COVID checks and consumers’ desire to get out after restrictions.

 

CBP sold 900 cattle yesterday in their sealed bid format at slightly over $116 - one higher than the previous week's market in the south, according to The Cattle Report. The cash market needs more cattle in the cash pool and it needs reporting on cattle that trade each day of the week but are unreported.

 

Hog inventory down from last quarter

 

USDA’s March Hogs and Pigs report places the March 1 inventory of all hogs and pigs at 74.8 million head, down about 3% from last quarter and 1.8% from last March, compared to pre-report estimates of 0.1% higher. The report estimates are mostly around or below the lower end of the range of pre-report expectations and represent the first March-over-March reduction since 2014, according to Jason Franken, agricultural economist at Western Illinois University and contributor to the University of Illinois farmdoc team.

 

Last week's hog report will be supportive of beef prices, according to The Cattle Report. The pig report surprised many and pushed lean hog futures to life of contract highs of well over $100 after trading in the $60s not long ago. High priced pork will cause some switching, both domestically and for export, to beef.

 

Traders anticipate plantings report

 

USDA will release its annual prospective plantings report at 11 a.m. Corn acreage is expected to be 93.2 million, up from 90.8 million last year. Soybeans are expected to be at 90 million even, which would be sharply higher from the 83.1 million planted last year, said Joe Vaclavik of Standard Grain. “The idea is that row crops will pull acreage from other crops, and also that we’ll see a lower amount of preplant acreage,” he said.

 

The rally in the dollar helped pressure commodities and made another new multi-month high overnight before settling back, said Matthew Strelow of Total Farm Marketing. Improving U.S. Midwest and Argentina weather is offsetting drier Brazil weather. “Once today’s fundamental data is released and factored into the market, we expected weather reports to dominate market news,” he said.

 

Tue 3/30/2021 4:52 PM

 

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

 

Choice rose $5.30 to $244.83/cwt.

Select went up $3.42 to $235.92.

 

There were no reported negotiated cash sales in Iowa/Minnesota or Nebraska, USDA said.

 

Beef cutout prices are expected to move higher, but profit taking may have limited gains as the market prepares for a 3-day weekend.

 

Studies are showing the cattle market are in overbought territory for the June live cattle contract, The Hightower Report said. “Some caution is warranted,” they said, but the short-term trend remains positive.

 

Cattle cash prices strong

 

Short-term cash news “remains positive” in the cattle market, despite today’s mixed to lower trading day,” The Hightower Report said. “A seasonal increase in demand and aggressive government stimulus for consumers should help support higher cash cattle trade.”

 

After yesterday’s lower trade, the market bounced back as there is a “continued strong advance in pork prices,” The Hightower Report said as a seasonal decline in production continues to provide support.

 

Grains take hit on Tuesday

 

As markets hit quarter-end, traders were squaring up their positions across the board, leading to lower markets, Katie Murphy of CHS Hedging said. The U.S. dollar also saw gains on inflation concerns as additional stimulus is being discussed.

 

Those stimulus ideas are coming as democratic senators are urging President Biden to add recurring direct payments in his economic plan expected to be unveiled on Wednesday.

 

Corn

 

Expectations for increased corn acres tomorrow weighed on the corn market today, in response to the rally in prices over the winter.

 

As planting season hits 50% in Texas, weather is looking supportive for planting across the country, Katie Murphy of CHS Hedging said.

 

China may have adequate supplies right now as their domestic corn prices are lowering, Total Farm Marketing said.

 

Soybeans

 

The rising U.S. dollar is adding to pressure on the soybean market, as well as fund selling in the soy complex, Katie Murphy of CHS Hedging said. Soy oil also dropped to limit-down today as weakness continues in the market.

 

Prices in the soybean and soyoil market “are back near key support” after their recent drops, ADM Investor Services said. “Washout was linked to weak technical signals, concern about bearish USDA report, slowdown in China buying and improved US and Argentina weather.”

 

Wheat

 

The U.S. plains is still in need of moisture, but the market is not reacting to that yet, Total Farm Marketing said. “Freezes are expected this week for key wheat production areas in the U.S.,” they said, but no damage is expected.

 

“Improved U.S. winter wheat weather and crop outlook, lower world wheat prices and drop in world wheat demand has triggered fund long liquidation and prices trying to find a level that will encourage new demand,” ADM Investor Services said.

 

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