[Tues]: Cattle calls are “steady to firmer” after a good start to the week, Total Farm Marketing said. The market worked off early session selling to finish near session highs in overall mixed traded. “We look for a steady to higher cash trade, but the packers seem to still have the leverage,” they said… [Mon]: Afternoon National Slaughter Cattle Review / Boxed beef cutout values this afternoon were higher… In negotiated cash sales in Nebraska, the USDA reported 400 head sold live for $120, and 320 head sold dressed for $190. In Iowa/Minnesota, there were 79 head sold live for $118, and no dressed sales. A rise in beef prices could have a corrective impact on cattle markets…

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Tue 4/27/2021 8:47 AM

 

Cattle finding footing to open week

 

Cattle calls are “steady to firmer” after a good start to the week, Total Farm Marketing said. The market worked off early session selling to finish near session highs in overall mixed traded. “We look for a steady to higher cash trade, but the packers seem to still have the leverage,” they said.

 

Bullish technicals in the hog market “suggests tests of April highs,” The Hightower Report said. However, with pork cutout values struggling, hitting a one-month low, the near-term action will be telling.

 

Surge in corn affects livestock again

 

“June cattle closed moderately higher on the session and near the highs,” the Hightower Report said. “…Another surge higher in the corn market helped to trigger fears of a short-term bulge in beef production and that sparked speculative sellers to be active even with a bullish cattle on feed report on Friday.”

 

“June hogs traded moderately lower on the day early in the session and took out Friday's lows,” the Hightower Report said. “However, the market closed sharply higher on the session and traded up to the highest level since April 15. Weakness in the pork values Friday plus a limit up move in corn early today helped to pressure the market.”

 

Grains open Tuesday mixed

 

The good times keep coming for the grain markets, with continued strength on Monday. New crop contracts relaxed slightly overnight, but front months continued to show strength coming into the morning. Total Farm Marketing said that spring rallies rarely change acreage shifts, “but this year could be different given the scope of the price rally and how early it is.”

 

First notice day for May grain futures is Friday, CHS Hedging said.

 

Mon 4/26/2021 4:56 PM

 

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

 

Choice was up $1.43 to $285.20/cwt.

Select rose $2.22 to $274.35.

 

In negotiated cash sales in Nebraska, the USDA reported 400 head sold live for $120, and 320 head sold dressed for $190. In Iowa/Minnesota, there were 79 head sold live for $118, and no dressed sales.

 

A rise in beef prices could have a corrective impact on cattle markets.

 

“June cattle is trading well under the cash market, and with the jump in beef prices over the past few weeks to the highest level since early June 2020, the market looks vulnerable to a corrective bounce,” the Hightower Report said.

 

A number of factors are driving cattle markets, including the latest Cattle on Feed report, corn markets and trends in cash trade.

 

“Cattle on Feed placements lower than expected,” Total Farm Marketing said. "Feeder cattle pressured by limit up corn. Today’s slaughter estimated at 119,000 head. Cash trade needs to improve this week.”

 

Surge in corn affects livestock again

 

“June cattle closed moderately higher on the session and near the highs,” the Hightower Report said. “…Another surge higher in the corn market helped to trigger fears of a short-term bulge in beef production and that sparked speculative sellers to be active even with a bullish cattle on feed report on Friday.”

 

“June hogs traded moderately lower on the day early in the session and took out Friday's lows,” the Hightower Report said. “However, the market closed sharply higher on the session and traded up to the highest level since April 15. Weakness in the pork values Friday plus a limit up move in corn early today helped to pressure the market.”

 

‘Bull train shows no signs of stopping’

 

“The bull train continues to show no signs of stopping as we see a couple corn months close limit higher,” Nick Paumen, with CHS Hedging, said. “The soybean complex and three wheat classes showed impressive strength as well with contract highs made in many months. Much of this strength can be chalked up to the specs/technical market, demand and weather.”

 

Steve Freed, with ADM Investor Services, said, “Higher U.S. domestic basis on fears of supply less than demand and concern about U.S. summer weather pushed soybean futures to new highs. Fundamentals suggest the trend could continue higher. Some look for nearby soybeans to test $16, $16.25 then $17.”

 

Corn

 

“The corn market has been on quite the tear lately with today’s move pushing the gains in the last week for May futures up over $1.44 and December up over $1.20,” Nick Paumen, with CHS Hedging, said. “Contract highs made a long ways into the deferred months as we see multi-year highs. Demand remains strong with inspections at 1.95 MMT; estimates from 1.1-1.7 MMT.”

 

“Nearby May and July corn futures contracts traded up the daily price limit,” Steve Freed, with ADM Investor Services, said. “…Talk of lower Brazil 2021 crop, higher U.S...exports, higher U.S. domestic use and basis levels and a drier than normal U.S. summer pushed futures higher. For now, May weather should help U.S. corn planting.”

 

Soybeans

 

“The soybean complex saw strength across the board as the fundamentals remain extremely bullish,” Nick Paumen, with CHS Hedging, said. “…There continues to be soybeans planted ahead of corn with many hopeful that they will capture early premiums as supply for beans runs low this summer.”

 

Some still feel the U.S. 2020/21 soybean carryout could be below the USDA’s reported 120 mln bu., Steve Freed, with ADM Investor Services, said.

 

“There is talk that Brazil soybeans may now work into U.S.,” Freed said. “U.S. 2021 acres times the trend yield suggest a U.S. 2021/22 soybean carryout near 25. U.S. summer weather will need to be perfect.”

 

Wheat

 

“Wheat is seeing the same spec/fund driven strength that corn and soybeans are with futures up 23-29 cents in all three wheat classes, and contract highs were made,” Nick Paumen, with CHS Hedging, said. “Major drought concerns remain evident in the western plains with not much in the forecast for relief.”

 

“Wheat futures traded sharply higher,” Steve Freed, with ADM Investor Services, said. “All three U.S. futures traded over $7.00. U.S. wheat exports remain uncompetitive to world buyers. Weekly U.S. wheat exports were near 21 mln bu. vs 23 last week and 18 last year. Season-to-date exports are near 830 mln vs. 827 last year.”

 

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