[Weds]: Afternoon National Slaughter Cattle Review / Boxed beef cutout values this afternoon were steady on Choice and higher on Select… In negotiated cash sales in Nebraska, the USDA reported 3,193 head sold live for $120-122.50, and 84 head sold dressed for $191. In Iowa/Minnesota, there were 2,215 head sold live for 118-122.15, and 372 head sold dressed for $189-190. Cash markets have been holding steady despite boxed beef trends. “Cash appears to be steady despite weakness in boxed beef,” Total Farm Marketing said…

 

Farm Commodity Newsletter/Iowa Farmer Today

Wed 6/9/2021 4:51 PM

 

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

 

Choice was up 4 cents to $338.65/cwt.

Select rose $1.69 to $307.87.

 

In negotiated cash sales in Nebraska, the USDA reported 3,193 head sold live for $120-122.50, and 84 head sold dressed for $191. In Iowa/Minnesota, there were 2,215 head sold live for 118-122.15, and 372 head sold dressed for $189-190.

 

Cash markets have been holding steady despite boxed beef trends. “Cash appears to be steady despite weakness in boxed beef,” Total Farm Marketing said. “Funds continue to liquidate positions. Sales in the south at 119-120. Cattle slaughter projected at 120,000. Feeder Cattle cash index for June 7: down .95 at 140.12.”

 

“Short-term, we cannot rule out a firming tone to the cash market. June cattle experienced the highest close since May 21,” the Hightower Report said. “Beef exports for April reached 287.1 mln pounds, up from 235.2 mln last year but down from 300.1 March. Boxed beef cutout values at midsession came in at $339.49, up $0.88 on the day.”

 

Livestock mixed on Wednesday

 

“August cattle closed moderately higher on the session and managed to bounce to a 3-session high,” the Hightower Report said. “The discount to the cash market is providing underlying support, but traders are also nervous over the potential for increasing supply and declining demand into the heart of the summer.”

 

“July hogs closed moderately lower on the day and stayed inside of yesterday's range,” the Hightower Report said. “October hogs closed higher with an inside trading day. Fears that China could back away from US pork market has helped spark some selling. US pork export sales for April came in at 654.9 mln pounds, which was up 2.1% from a year ago but down from March.”

 

Markets prepare for Thursday's WASDE

 

“US Census Sep-April soybean exports were up 124 mln bu. above weekly inspections to date,” Steve Freed, with ADM Investor Services, said. “This puts USDA in a tough spot if they feel final carryout cannot go below 120. There is some concern that dry and warm weather could be be forecasted for US Midwest states over the next 2 weeks.”

 

Traders were also taking note of trends in ethanol exports. “Official Census data showed ethanol exports in April were reported at 112.68 mln gallons,” Barchart.com said. “That was down from 132.98 mln in March, but above the 99 mln from April 2020. About 45 mln gallons went to China that month.”

 

Corn

 

“Corn futures managed to ended higher led by the CN,” Steve Freed, with ADM Investor Services, said. “Talk of higher US 2020/21 corn demand offered support. US official Census Sep-April corn exports are running 150 mln bu. above inspections to date. This could suggest USDA could increase US 2020/21 export demand tomorrow.”

 

Analysts are also watching trends in ethanol production. “Ethanol production averaged 1.067 mln barrels per day during the week ending June 4,” Barchart.com said. “That was up 33,000 bpd week to week. The weekly EIA data also showed stocks rose 372,000 barrels to 19.96 mln.”

 

Soybeans

 

Soybeans are seeing some long liquidation and resistance from the latest USDA report. “Soybeans ended lower,” Steve Freed, with ADM Investor Services, said. “Some long liquidation before US weekly export sales and USDA report offered resistance. Drop in US cash basis and Index fund roll also weighed on SN.”

 

“Census export data showed 1.385 MMT (50.89 mln bu.) of soybeans were shipped in April,” Barchart.com said. “That was a marketing year low, and the slowest for April since 2016. The official accumulated soybean shipments are still comfortably a record 2.12 bln bushels at 93% of USDA’s May forecast. USDA will update their S&D estimates on Thursday."

 

Wheat

 

“Wheat futures ended mixed,” Steve Freed, with ADM Investor Services, said. “WN ended slightly lower and near 6.82. WN found support near 6.70. KWN ended slightly higher and near 6.34. KWN found support near 6.20. MWN ended lower and near 7.64. MWN found support near 7.40. Trade estimates US 2021 wheat crop near 1,892 mln bu. vs 1,872 in May.”

 

“Official Census data shows 2.603 MMT (95.65 mln bu.) of wheat was exported in April,” Barchart.com said. “That was the second highest monthly shipment of the MY, and was 10.3% higher yr/yr. Wheat exports through April reached 882.52 mln bu. and will need to have been 82.5 mln bu. in May to meet USDA’s forecast – barring any changes made on Thursday.”

 

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