[Weds]: National Daily Hog and Pork Summary: Natl: $108.65, -$0.27; IA/MN: $112.14, -$0.47; WCB: $111.92, -$0.86; East: N/A; Cutout: $129.59, +$2.47 / “Yesterday’s cyberattack has had an impact on hog slaughter & 20% of the hog processing in US,” Total Farm Marketing said. “Hogs put in new highs yesterday – trend still upward for now. Hog slaughter projected at 483,000. Cash lean index for May 27: up 0.36 at 113.44”…

 

Farm Commodity Newsletter/Iowa Farmer Today

Wed 6/2/2021 4:51 PM

 

In weighted average negotiated prices for barrows and gilts, USDA reported;

 

National carcass base was 27 cents lower to $108.65/cwt.

National live was $83.37 with no comparison to the prior day

Iowa-Minnesota carcass base was $112.14

 

USDA reported carcass cutout values this afternoon were up $2.47 to $129.59/cwt.

 

On Wednesday traders were monitoring the latest on the lean hog index and meat plant workers. “With the Lean Index at 113.54, June and July hogs feel rich,” the Hightower Report said. “JBS plant workers are either back to work or scheduled to get back working soon. Pork cutout values at midsession came in at $129.30, up $2.18 on the day.”

 

Overall, hogs continue to trend upward. “Yesterday’s cyberattack has had an impact on hog slaughter & 20% of the hog processing in US,” Total Farm Marketing said. “Hogs put in new highs yesterday – trend still upward for now. Hog slaughter projected at 483,000. Cash lean index for May 27: up 0.36 at 113.44.”

 

Cattle rallies as pipeline shows signs of life

 

"News that JBS employees were scheduled to return back to work today helped to drive the market sharply higher on the session with June cattle closing all the way back above Friday's close,” the Hightower Report said. “…With cash trading near $119 or above for the last two weeks, June cattle looks cheap.”

 

“July hogs closed sharply lower as the rally to yesterday's high failed to attract new buying interest,” the Hightower Report said. “The stiff premium of futures to the cash market is seen as a limiting factor on the upside. Iowa/southern Minnesota weights for the week ending May 29 came in at 283.1 pounds, down from 283.5 pounds last week and 291 pounds a year ago.”

 

Grains mixed on weather, conditions

 

“A mixed bag in the grain markets from weather worries and crop conditions,” Ami Heesch, with CHS Hedging, said. “Spring wheat struggles with lack of moisture and a rise in temps this week and weekend. Oil traded higher from thoughts of increased demand for the summer. Folks are said to be on the move after the past year of lockdowns from COVID.”

 

“Soybeans traded higher on talk of lower Brazil supplies and higher China demand,” Steve Freed, with ADM Investor Services, said. “Soyoil continued to rally on talk of higher Asia demand. Higher US biofuel demand also supports soyoil futures. Soymeal dropped on concern of oversupply.”

 

Corn

 

Corn markets had a down day. “The corn market was on the defensive from a bout of profit taking and better than expected crop conditions, despite crop worries over Brazil’s second corn crop,” Ami Heesch, with CHS Hedging, said. “There are ideas that the total Brazil corn crop could dip below 90.0 mmt.”

 

“Corn futures traded lower,” Steve Freed, with ADM Investor Services, said. “USDA rating of US 2021 corn crop was higher than expected… CN dropped from contract highs near 7.35 to a recent low near 6.02 on good US spring weather and talk that final US 2021 corn acres could increase to as high as 96.8 million versus USDA guess of 91.1.”

 

Soybeans

 

“The soybean market traded higher on borrowed strength from the crude oil, palm oil and soyoil markets,” Ami Heesch, with CHS Hedging, said. “Soyoil gains strength from increased usage for biofuels. Stocks remain tight going into the summer months. With ideas of increased corn acres, the beans acres could remain tight.”

 

“World soybean exports to China were near 1.8 mmt last week,” Steve Freed, with ADM Investor Services, said. “Year to date exports are near 69 mmt or up 6 pct from last year. USDA is forecasting a 1.5 pct Increase. There is little new data coming out of China but last weeks soybean crush was estimated near 2.1 mmt.”

 

Wheat

 

“The wheat market traded higher on hot/dry forecasts for the US Northern Plains this week and into the weekend,” Ami Heesch, with CHS Hedging, said. “The Southern Plains remain wet with chances of seeing some drier weather later in the week. Mpls led the pack higher early in the session.”

 

“Rains in the south plains could lower HRW protein level,” Steve Freed, with ADM Investor Services, said. “OK harvest is also being delayed. The big news in US wheat is the continued dryness across US north plains and Canada prairies. 10 day forecast remains dry although noon America model put in rains for ND.”

 

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