[Mon]: Afternoon National Slaughter Cattle Review / Boxed beef cutout values this afternoon were steady on Choice and lower on Select… In negotiated cash sales in Nebraska, the USDA reported no live sales, and 65 head sold dressed for $191. In Iowa/Minnesota, there was no reportable trade… “Last week’s JBS hack may result in aggressive buying this week,” Total Farm Marketing said. “Higher grain may increase the desire of feedlots to move cattle early. Cattle slaughter projected at 119,000. Feeder Cattle cash index for June 2: up .15 at 136.65”…

 

Farm Commodity Newsletter/Iowa Farmer Today

Mon 6/7/2021 4:49 PM

 

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

 

Choice was 38 cents lower to $338.60/cwt.

Select was down $2.56 to $309.17.

 

In negotiated cash sales in Nebraska, the USDA reported no live sales, and 65 head sold dressed for $191. In Iowa/Minnesota, there was no reportable trade.

 

Analysts are watching for some aggressive buying this week. “Last week’s JBS hack may result in aggressive buying this week,” Total Farm Marketing said. “Higher grain may increase the desire of feedlots to move cattle early. Cattle slaughter projected at 119,000. Feeder Cattle cash index for June 2: up .15 at 136.65.”

 

“USDA quoted Wholesale Boxed Beef prices mixed this morning as Choice boxes recovered 76 cents but Select boxes were another $1.23 weaker,” Barchart.com said. “USDA estimated the week’s FI cattle slaughter at 538k head through Saturday. That is down from 629,000 head last week and from 628,000 head from the same week last year.”

 

Livestock markets finish mixed

 

It was a mixed day for cattle markets. “Deferred futures are in the black, but nearby prices are 12 to 42 cents in the red,” Barchart.com said. “Friday cash sales were mostly $120 in TX. Feeder cattle futures are also weaker so far, with midday losses of 65 cents to 75 cents. The 6/3 CME Feeder Cattle Index was 85 cents higher to $137.50.”

 

Lean hog markets started the trading week with positive momentum. “Monday lean hog futures trading has the board 10 cents to $1.50 in the black at midday,” Barchart.com said. “USDA’s National Average Base Hog price for Monday morning was 85 cents higher to $106.66. The CME Lean Hog Index was 70 cents stronger on 6/3 to $114.75.”

 

Grains ease back after overnight gains

 

Corn and beans drifted lower Monday after a strong overnight session. "Like corn, beans had a strong overnight session and then spent the day drifting lower into a weak close,” Michaela White, with CHS Hedging, said. “Old closed lower, and the new crop was higher. The market is focused on weather, which is giving support to the new crop.”

 

“Nearby soybeans, corn and wheat were lower,” Steve Freed, with ADM Investor Services, said. “…Soymeal and soyoil were also lower. New crop corn and soybeans ended higher. Slow weekly US export sales and forecast of some rains across US Midwest triggered selling in the nearby futures.”

 

Corn

 

Traders continue to watch the weather outlook. “After a strong overnight session, corn prices drifted lower through the day session,” Michaela White, with CHS Hedging, said. “The gap made overnight on the December chart remains open, for now. Weather continues to be the main focus of the market.”

 

“Nearby corn futures ended lower on talk of some Midwest rains and lower than expected weekly export shipments,” Steve Freed, with ADM Investor Services, said. “Over the weekend the 30 and 60 day EU weather models suggested that most of the US upper Midwest and north plains could be warmer and drier than normal.”

 

Soybeans

 

Soybean planting was moving closer to being complete, despite weather delays in some parts of the country. “Soybean plantings were reported at 90% complete versus the average trade estimate of 92%,” Michaela White, with CHS Hedging, said. “Soybean conditions were reported at 67% good to excellent versus the average trade estimate of 70%.”

 

“Weekly US soybean exports were near 8 mln bu.,” Steve Freed, with ADM Investor Services, said. “Season to date exports are near 2,082 mln bu. vs 1,315 last year. USDA goal is 2,280 vs 1,682 last year. Most are looking for US to keep US 2020/21 soybean carryout near 120 mln bu. and 21/22 at 140.”

 

Wheat

 

“Wheat prices were violent today, with a strong overnight session that was followed by a weak day session,” Michaela White, with CHS Hedging, said. “…The market seemed to become less concerned with the ongoing drought in the Northern Plains, and the 1-5 day forecast showed rain covering much of the Northern Plains. The market will be watching to see if the rain is realized.”

 

“Talk of rains across parts of Canada prairies and US HRS area triggered long liquidation,” Steve Freed, with ADM Investor Services, said. “Nearby Chicago and KC futures followed lower corn despite lower US Dollar. Over the weekend, the EU 30 and 60 day weather forecast calls for below normal rain and above normal temps for the US north plains, PNW and Canada prairies.”

 

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