[Thurs]: National Daily Hog and Pork Summary: $108.45, -$0.20; IA/MN: N/A; WCB $114.18, +$2.26; East: N/A; Cutout $131.52, +$1.93 / “The premium of July futures to the cash market is seen as a limiting factor,” the Hightower Report said. “In addition, traders remain nervous that exports could slow at any time given the 50% break in China pig prices since the start of the year. Pork cutout values at midsession came in at $131.83, up $2.24 on the day”…

 

Farm Commodity Newsletter/Iowa Farmer Today

Thu 6/3/2021 4:45 PM

 

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

 

National carcass base was 20 cents lower to $108.45/cwt.

National live was 44 cents higher to $83.81

Iowa-Minnesota carcass base price was not reported due to confidentiality

 

USDA reported carcass cutout values this afternoon was up $1.93 to $131.52/cwt.

 

“The premium of July futures to the cash market is seen as a limiting factor,” the Hightower Report said. “In addition, traders remain nervous that exports could slow at any time given the 50% break in China pig prices since the start of the year. Pork cutout values at midsession came in at $131.83, up $2.24 on the day.”

 

Slaughter data indicated the industry was playing catchup. “Strong Saturday slaughter indicates determination to make up for lost time,” Total Farm Marketing said. “Obese pigs blamed for China’s pork price plunge. Hog slaughter projected at 472,000. Cash Lean Index for May 31: up 0.10 at 113.54.”

 

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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