[Thurs]: “The cash market is struggling with the amount of slaughter animals available, keeping leverage with the packer, despite the strong demand and margins,” Total Farm Marketing said… Technical action “remains bearish” in cattle, as they hit their lowest points since January 14, The Hightower Report said… [Weds]: Afternoon National Slaughter Cattle Review / Boxed beef cutout values this afternoon were higher… In negotiated cash sales in Nebraska, the USDA reported 6,685 head sold live for $118-120.50, and 11,432 head sold dressed for $188-191. In Iowa/Minnesota, there were 2,067 head sold live for $119-120, and 3,579 head sold dressed for $188-191… “Ideas that feedlot operators will continue to quickly sell cattle that are anywhere near market-ready has helped to pressure,” the Hightower Report said. “Boxed beef cutout values at midsession came in at $292.39, up $1.40 on the day”…

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Thu 4/29/2021 8:42 AM

 

Cattle - The upcoming expiration of the April cattle contract “may be weighing on the market in general,” but overall, fundamentals are mixed at the moment, Total Farm Marketing said.

 

“The cash market is struggling with the amount of slaughter animals available, keeping leverage with the packer, despite the strong demand and margins,” Total Farm Marketing said.

 

Cattle outlook "bearish" as feed costs stay high

 

Technical action “remains bearish” in cattle, as they hit their lowest points since January 14, The Hightower Report said. While they say the market is technically oversold, the worries of short-term supply “due to the high price of corn” is limiting any possible gains in cattle.

 

New African Swine Fever cases are being reported in China, this time in Northern Mongolia. This marks the 10th report of an outbreak this year, Michaela White of CHS Hedging said.

 

Wed 4/28/2021 4:53 PM

 

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

 

Choice was up $1.51 to $292.50/cwt.

Select was down 53 cents to $279.00.

 

In negotiated cash sales in Nebraska, the USDA reported 6,685 head sold live for $118-120.50, and 11,432 head sold dressed for $188-191. In Iowa/Minnesota, there were 2,067 head sold live for $119-120, and 3,579 head sold dressed for $188-191.

 

“Weekly export sales tomorrow will look to stay supportive and build off last week’s movement,” Total Farm Marketing said. “Despite the strong demand, the cash market disappoints the market overall. Cash is starting to develop this week with the early direct trade ranging from $118-120, mostly steady to lower than last week.”

 

Traders are watching what feedlots might do and how quickly they will sell cattle. “Ideas that feedlot operators will continue to quickly sell cattle that are anywhere near market-ready has helped to pressure,” the Hightower Report said. “Boxed beef cutout values at midsession came in at $292.39, up $1.40 on the day.”

 

Hogs strong, cattle slip lower as day progresses

 

“June cattle traded higher on the day into the midsession but closed lower and sharply down from the early highs,” the Hightower Report said. “The market rallied early in the session with sharply lower grain prices, but the turn higher in the grain markets helped to trigger some selling in the livestock.”

 

“June hogs gap higher on the opening and closed sharply higher on the day,” the Hightower Report said. “The buying pushed the market up to the highest level since April 12 which was a contract high day. The market traded off of the highs of the day as grain prices recovered from early weakness.”

 

Heavy planting weighing on markets

 

"Expectations for strong planting progress in the days and weeks ahead may have pressured November soybeans today,” Total Farm Marketing said. “Yet, tight carryout and strong demand provides underlying support. The markets have accelerated upward, and it’s just not soybeans, it’s all row crops.”

 

Grain markets may have been correcting some are a strong run higher. “Another selloff day in the grains as the correction continues after the impressive run higher,” Nick Paumen, with CHS Hedging, said. “Most of the news remains static so we’re trading weather, planting progress, and if the funds want to sell or buy.”

 

Corn

 

“Another volatile day in the corn market with a weaker start to the day, higher trend until around mid-session, then a major selloff the after 1:00,” Nick Paumen, with CHS Hedging, said. “…Weather overall for the end of the week looks supportive for planters to roll across much of the cornbelt, so that added to the weakness.”

 

“The rally in corn this spring has been magnificent with cash leading the way,” Total Farm Marketing said. “Because cash remains strong, we will initially view this as a correction. Yet, what appears to be a conducive forecast for corn planting could suggest more than half of the crop could be in the ground by the end of the upcoming weekend.”

 

Soybeans

 

“One of the few glimpses of green on across the board today was May soybeans and soybean oil,” Nick Paumen, with CHS Hedging, said. “Ranges in the soybean futures were quite large again today with July at 54’0 cents and November at 33’0 cents, to name a few. Cash markets remain strong as the domestic crusher is calling for soybeans to move to them.”

 

“Grains markets were choppy and volatile,” Steve Freed, with ADM Investor Services, said. “Early losses linked to talk of increase US imports and US Fed keeping rates low. Talk of tight US 2020/21 supplies rallied May contracts before deliveries. Late selloff linked to favorable US weather and increasing US debt.”

 

Wheat

 

“Double digit weakness in the majority of the months in all three wheat classes as the profit taking continues,” Nick Paumen, with CHS Hedging, said. “Eastern HRW areas are on deck to get some rains in the near term, but also seeing reports showing evidence of frost damage. The SRW crop continues to look strong which may add to the weakness in the Chi markets.”

 

“World prices are lower than US and could limit US exports,” Steve Freed, with ADM Investor Services, said. “Weekly US wheat exports are estimated near 0-300 mt vs 240 last week. New crop sales are est near 200-450 mt vs 373 last week. This weeks Egypt tender cancellation due to high prices offered resistance.”

 

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