[Tues]: “Better than expected China imports coupled with the imminent re-opening of many U.S. restaurants is currently cancelling surging feed costs and pushing June Hog Futures back to their highs,” William Moore of Price Futures Group said… [Mon]: National Daily Hog and Pork Summary: National AMS Hogs -$0.48, Carcass Cutout -$2.64 / “Cash continues to improve as packers remain aggressive,” Total Farm Marketing said. "Lower cutouts Friday might mean prices are reaching threshold — sideways trade ahead? Hog slaughter estimated at 484,000 head”…

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Tue 4/27/2021 8:47 AM

 

Lean hogs - “Better than expected China imports coupled with the imminent re-opening of many U.S. restaurants is currently cancelling surging feed costs and pushing June Hog Futures back to their highs,” William Moore of Price Futures Group said.

 

“The softness in retails on Monday my limit upside prices,” Total Farm Marketing said. “The strong rally in grain markets may support the deferred futures contract, as December hogs made new contract highs yesterday, slow expansion and possibly further tightening the U.S. hog herd.”

 

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

 

Hog markets found some support and rallied after a sluggish start on Monday.

 

“The market rallied as corn drifted down from the highs,” the Hightower Report said. “With the cash market at 106.51, June hogs found support on the early break. Pork cut-out values at midsession came in at $111.10, down 84 cents on the day.”

 

Cash hog markets are showing improvement.

 

“Cash continues to improve as packers remain aggressive,” Total Farm Marketing said. "Lower cutouts Friday might mean prices are reaching threshold — sideways trade ahead? Hog slaughter estimated at 484,000 head.”

 

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.”

 

iowafarmertoday.com