[Weds]: … current high feed prices may encourage producers to sell sooner rather than later. “This is a short-term negative force but will help to keep producers current and weights should slide,” The Hightower Report said today… The short-term domestic demand factors for pork remain positive as long as the export market stays strong… [Tues]: National Daily Hog and Pork Summary / National carcass base up 5.39... USDA reported carcass cutout values this afternoon rose 95 cents... Better than expected China imports coupled with the imminent re-opening of many US restaurants is offsetting surging feed costs and pushing June Hog Futures back to their highs, according to The Price Futures Group...
Farm Commodity Newsletter/Iowa Farmer Today
Wed 4/28/2021 8:35 AM
Lean hogs - As with cattle, current high feed prices may encourage producers to sell sooner rather than later. “This is a short-term negative force but will help to keep producers current and weights should slide,” The Hightower Report said today.
The price action, despite being steady to lower yesterday was good, as prices pushed to the top of the range for the day at the close. “This could bring some additional strength on the open today,” Total Farm Marketing said this morning.
Pork demand strong, feedlots selling cattle early
The demand strength will be able to support the pork market as overall pork supplies are tight, according to Total Farm Marketing.
The short-term domestic demand factors for pork remain positive as long as the export market stays strong, The Hightower Report said this morning.
High grain prices are encouraging feedlots to sell cattle sooner rather than later, and weight data suggest that there is ample short-term supply ready to come off of feedlots, The Hightower Report said this morning.
“Traders remain fearful that feedlots are in a hurry to sell cattle due to high feed prices and this helped to push the market lower on the day into the close yesterday,” The Report said.
Corn, wheat soybeans all down in “correction”
Corn, wheat and soybeans moved downwards overnight with soybeans taking the biggest fall at about 25 cents down, ADM Investor Services said this morning.
With the hyper bullish trade that has been going on, grain prices may have been to the top or this just an early warning. “There is potential for a larger scale correction coming for us,” Mike Lung of Allendale said this morning.
Meanwhile, U.S.-based meat processor Perdue is shipping one cargo of 31,450 tons of Brazilian soybeans into the United States, according to line-up data from shipping agency Cargonave, “as stocks dwindle in the destination market,” Total Farm Marketing said in its Sunrise report today.
Tue 4/27/2021 4:26 PM
In weighted average negotiated prices for barrows and gilts, USDA reported;
National carcass base up 5.39 to $113.10/cwt.
National live price was up 2 cents to $83.21.
Iowa-Minnesota carcass base at $115.31.
USDA reported carcass cutout values this afternoon rose 95 cents to $110.68/cwt.
Better than expected China imports coupled with the imminent re-opening of many US restaurants is offsetting surging feed costs and pushing June Hog Futures back to their highs, according to The Price Futures Group.
May corn rally continues to weigh on cattle
The continued strong rally for the corn market with May corn as high as $7.20 ˝ keeps selling pressure on the cattle market, according to The Hightower Report. The USDA pork cutout, released yesterday after the close, came in at the lowest since March 31.
As grains start to ease back, bad weather could come into play
U.S. rally in wheat, corn and soybeans is threatens dramatic price hikes on essential food commodities with costs hitting grocery store shelves, said ADM Investor Services. Bad crop weather in key producing countries a major culprit.
US corn is 17% planted and soybeans are 8% planted, per Total Farm Marketing.
Confidence that old-crop purchases by China will eventually all get shipped is fed by growing expectations that global corn supplies will tighten over the coming year, writes Sean Lusk of Walsh Trading.
Brazil remains too dry, with talk that a smaller corn crop there is inevitable, according to Total Farm Marketing.
November soybeans pushed to new contract highs in five of last six trading sessions but seem to be losing the battle for acres, according to The Hightower Report.
Soybean processer bids today were steady with plenty of rolls going to the July, according to CHS Hedging.
Prospect of little rain in the next two weeks, raises concerns for West Texas and the southwestern part of the Hard Red Winter Wheat Region, according to ADM Investor Services.
USDA lowered overall wheat rating from 54% last week to 49%, according to Total Farm Marketing. 28% of spring wheat is planted – ahead of the 19% 5 year average.