[Thurs]: Afternoon National Slaughter Cattle Review / Boxed beef cutout values this afternoon were higher… In negotiated cash sales in Nebraska, the USDA reported 3,012 head sold live for $120, and 162 head sold dressed for $191. In Iowa/Minnesota, there were 3,480 head sold live for $118-121, and 1,994 head sold dressed for $189-193. “June cattle is still trading discount to the cash market which has traded near the 119.50-120.00 level this week,” the Hightower Report said. “The USDA estimated cattle slaughter came in at 120,000 head from 105,000 head yesterday and compared with 94,000 head on Tuesday. Slaughter last week was 121,000 head”…

 

Farm Commodity Newsletter/Iowa Farmer Today

Thu 6/3/2021 4:45 PM

 

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

 

Choice was up 39 cents to $340.55/cwt.

Select rose $1.28 to $313.16.

 

In negotiated cash sales in Nebraska, the USDA reported 3,012 head sold live for $120, and 162 head sold dressed for $191. In Iowa/Minnesota, there were 3,480 head sold live for $118-121, and 1,994 head sold dressed for $189-193.

 

“June cattle is still trading discount to the cash market which has traded near the 119.50-120.00 level this week,” the Hightower Report said. “The USDA estimated cattle slaughter came in at 120,000 head from 105,000 head yesterday and compared with 94,000 head on Tuesday. Slaughter last week was 121,000 head.”

 

“Supplies might be tighter as slaughter levels need time to return to normal,” Total Farm Marketing said. “June futures still remains discount to cash. Light cash trade seen at 120 in the South. Cattle slaughter projected at 119,000. Feeder Cattle Cash Index for June 1: up 0.04 at 136.50.”

 

Hogs, cattle quiet on Thursday

 

“August cattle closed slightly lower with a quiet inside trading day,” the Hightower Report said. “…The lower slaughter of the past two days has helped support continued solid gains in the beef market up to the second highest level on record after last year's surge to the record high which was a temporary aberration due to the collapse in the slaughter pace due to Covid.”

 

“July hogs managed to close slightly higher on the session with an inside trading day,” the Hightower Report said. “With cash at 113.75, buyers were hesitant with the market near 119. October hogs pushed to new contract highs with a close near the highs. The strong gains for pork product prices this week should help keep the trend higher for cash markets into next week.”

 

Grains unable to hold strong start

 

“The Ag markets opened stronger on weather worries and potential for low yielding crops despite increased acreage going back into production,” Ami Heesch, with CHS Hedging, said. “One weather model suggested a wetter pattern to develop over the US Northern Plains and the markets spiraled into negative territory. The markets came off their lows by the close.”

 

“Our weather guy could see 80% of US Midwest could see 1 inch of rain in June,” Steve Freed, with ADM Investor Services, said. “50% of the Midwest could see 2 inches. Normal Midwest June rain is near 4 inches. Interesting that the fact the ridge may move west could increase chances for more ridging July and August.”

 

Corn

 

“The corn market opened stronger on tight supplies, decent demand, and worries of the Brazilian corn crop,” Ami Heesch, with CHS Hedging, said. “There are some ideas their total corn production has bopped below 90.0 mmt. We will see what the USDA feels in their updated world balance sheets next week. Prices turned lower midday on a wetter outlook for the US Midwest.”

 

“Corn futures had another wild ride today with a wide range,” Steve Freed, with ADM Investor Services, said. “Overnight prices were higher with EU and Canada weather models warm and dry over the next 2 weeks. The American model has chances for rains over parts of the US north plains and upper Midwest late in the 10 day period.”

 

Soybeans

 

“The soybean market opened higher on tight stocks, dry weather conditions, and borrowed strength from palm oil and soyoil markets,” Ami Heesch, with CHS Hedging, said. “Soymeal made a slight rebound from yesterdays’ losses. Prices turned lower midday on improving chances for much needed moisture across the US WCB.”

 

“The Canadian and more reliable EU weather model are dry over the next 2 weeks for US north plains and upper Midwest,” Steve Freed, with ADM Investor Services, said. “The America GFS model has rains in the forecast late in the 10 day period. The GFS model was enough the drive soybean futures lower from the overnight highs.”

 

Wheat

 

"Wheat futures also had a wild price ride today,” Steve Freed, with ADM Investor Services, said. “A warm and dry US north plains and Canada prairie weather forecast helped overnight prices rally. The less reliable American GFS model showed rains in the north plains late in the 10 day period. That same GFS model added rains in the noon update.”

 

“The wheat market opened higher on unfavorable weather conditions across the northern and southern plains,” Ami Heesch, with CHS Hedging, said. “Prices dropped sharply midday on some noon maps suggesting improving chances for beneficial moisture across the northern plains during the next 1-5 days.”

 

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