[Thurs]: Cattle demand is “extremely bullish” as consumers see a surge in spendable income with the stimulus payments, The Hightower Report said. “In addition, the beef pipeline is expanding as more and more restaurants, food service companies and entertainment businesses reopen”… [Weds]: Afternoon National Slaughter Cattle Review / Boxed beef cutout values this afternoon were higher… In negotiated cash sales in Nebraska, the USDA reported 2,325 head sold live at $118. Traders await better news on the cash market activity which has been slow this week and beef prices continue to advance, according to The Hightower Report…

 

Farm Commodity/Iowa Farmer Today

 

Thu 4/1/2021 8:53 AM

 

Cattle - Fundamentals are supportive in the live cattle market, despite yesterday’s strong grain move, Total Farm Marketing said. “April options expire today, and will likely keep some pressure on the front month.”

 

Feeder cattle prices, however, did get pressured by the surge in grain prices, Total Farm Marketing said, leading to heavy losses. Expect the follow-through on grains to influence that market today.

 

ASF continuing to hit China herd

 

According to a Reuters report, a wave of African Swine Flu has wiped out 20% of the northern region’s breeding herd in China, CHS Hedging said. “This raises more fears regarding the impact of losses going forward in other regions of the country.”

 

Cattle demand is “extremely bullish” as consumers see a surge in spendable income with the stimulus payments, The Hightower Report said. “In addition, the beef pipeline is expanding as more and more restaurants, food service companies and entertainment businesses reopen.”

 

Corn, soybeans continue gains overnight

 

Grain markets “didn’t have near the excitement as yesterday,” CHS Hedging said, but still managed to find support in the overnight trade. Much of that excitement came from the USAD acreage report, which estimated total principal acres at 316.2 mln acres, 6.1 mln higher than last year. However that mark was lower than expected, and 3.1 mln acres less than in 2019.

 

The U.S. dollar continues to be strong, an indicator the U.S. economy is improving, CHS Hedging said.

 

Today will be a normal trading day, but markets will be closed Friday for the Easter holiday, reopening Sunday night into Monday.

 

Wed 3/31/2021 4:25 PM

 

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

 

Choice up $2.29 to $247.12.

Select up $2.21 to $238.13.

 

In negotiated cash sales in Nebraska, the USDA reported 2,325 head sold live at $118.

 

Traders await better news on the cash market activity which has been slow this week and beef prices continue to advance, according to The Hightower Report.

 

Today’s slaughter estimate was 121 thousand head, according to Total Farm Marketing.

 

Feeders hit hard as livestock slides

 

April cattle closed near unchanged while June cattle were moderately higher but June hogs closed moderately lower on the day, according to The Hightower Report.

 

Cattle futures hold large premiums to cash, according to Total Farm Marketing.

 

Grains surge on USDA report

 

Today’s USDA acreage estimates surprised the trade and the result was certainly bullish, according to Mike Zuzolo of Global Commodity Analytics and Consulting. USDA estimated corn acres for this year at 91.1 million acres and soybeans at 87.6 million acres, both well below trade estimates. Wheat came in at 46.4 million acres.

 

Trade was very surprised by USDA’s acreage estimates, according to Karl Setzer of Agrivisor. The figure for soybeans is garnering the most attention because it indicates that even if the U.S. has a trendline yield of 50.8 bu. Per acre it would likely still lead to a drop in reserves.

 

Corn

 

Corn rallied with the market trading up the limit for most of the session following the USDA report, according to CHS Hedging.

 

The trade was surprised by the USDA report and now it will try to buy acres, according to Steve Freed at ADM Investor Services.

 

Soybeans

 

Soybean futures shot higher today after the surprisingly strong USDA report and prices settled at limit up, meaning that tomorrow’s session will have extended limits, according to CHS Hedging.

 

The USDA report was extremely bullish and May soybeans closed up the 70-cent limit, according to The Hightower Report.

 

Wheat

 

Wheat futures traded higher today as they took strength from the corn and soybean markets, according to CHS Hedging.

 

Ukraine is becoming a player in the world market again. Current Ukraine grain sales trail last year by 23 percent, thanks to a drought, according to Karl Setzer of Agrivisor. Production is expected to rebound this year.

 

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