[Mon]: “Beef prices continue to advance to the highest level since June and traders expect cash to trade higher again this week,” The Hightower Report said this morning…
Farm Commodity Newsletter/Iowa Farmer Today
Mon 4/5/2021 8:27 AM
Cattle - Cattle futures ignore the strong beef advance, said Alan Brugler of Brugler Marketing noting live cattle futures posted losses of 35 to 95 cents on Thursday.
The Hightower Report also noted that June cattle closed lower on the session Thursday after posting a contract high which is a bearish technical development. “Talk of the overbought condition of the market and ideas that futures are holding a strong premium to the cash market were seen as factors to limit the buying,” The Report said.
Beef prices continue moving higher
“Beef prices continue to advance to the highest level since June and traders expect cash to trade higher again this week,” The Hightower Report said this morning.
More short-term tightness and strong demand trends are supportive to pork prices, The Hightower Report said this morning. “Traders see prices high enough to eventually expect an expansion in the U.S., and China is still an active buyer of U.S. pork even though traders expect China to back away from the U.S. market soon,” The Hightower Report said.
Volatile start to new week, new quarter
New crop corn and soybeans continue to add premium after last week’s USDA report. This week when the USDA, revises the U.S. and World supply and demand, the challenge will be the 2020/21 corn balance sheet, said Steve Freed, ADM Investor Services.
Markets are still feeling the fallout from last Wednesday’s crop report and we are seeing big fund positioning as we start the new quarter. “It’s a volatile start to a new weeks is what is expected to be a volatile week,” said Jacob Christy of The Andersons.
The 6-10 day forecast is slightly wetter for the Eastern Corn Belt, while the 11-15 day looks much drier which should help corn planting, notes Kevin Stockard of CHS Hedging.
“New crop continues to gain on old, as traders focus on acreage,” Stockard said.
“There is some doubt U.S. farmers will increase corn acres given higher fuel and fertilizer cost and talk of a warm and dry summer”, said Steve Freed, ADM Investor Services.
Chicago corn futures have traded around $5.6 a bushel in early April so far, hovering around their highest since June 2013, amid concerns over tightening global supplies due to reduced output and stronger demand from importers led by China,” TradingEconomics.com said this morning.
Soybeans gapped higher following the holiday weekend, as stocks are very tight and more soybean acres are needed. “The whole soy complex is getting in on the rally this morning,” said Kevin Stokard of CHS Hedging.
Soy futures for the balance of 2021 are up 11 to 14 cents to start the week, following the large report swings at the tail end of last week, Alan Brugler of Brugler Marketing said this morning. There is volatility. “July and August soybean contracts set new highs overnight, but collectively old crop contracts closed 19 1/2 to 34 3/4 cents lower,” he said.
Wheat futures continue to trend lower due to lower World prices, mostly normal north hemisphere spring weather and talk that Russia is offering wheat for export and lower prices, according to Steve Freed of ADM Investor Services.
However, there is a pickup in export activity, although it looks to be Russia/Black Sea origin, said Kevin Stockard of CHS Hedging.