[Weds]: National Daily Hog and Pork Summary: Natl: $115.00, +$2.26; IA/MN: $123.86, +$4.15; WCB: $123.32, +$2.93; ECB: N/A; Cutout: $134.38, -$0.56 / Packers have been working to get enough hogs, while prices have been increasing. “Packers are not shy about needing hogs as prices increase,” Total Farm Marketing said. “Traders to continue buy breaks – market trend still upward. Hog slaughter projected at 483,000. Cash lean index for June 4: up 1.76 at 116.51"...
Farm Commodity Newsletter/Iowa Farmer Today
Wed 6/9/2021 4:51 PM
In weighted average negotiated prices for barrows and gilts, USDA reported;
National carcass base was $2.66 higher to $115/cwt.
National live was up 86 cents to $84.75
Iowa-Minnesota carcass base was $123.86
USDA reported carcass cutout values this afternoon were 56 cents lower to $134.38/cwt.
Packers have been working to get enough hogs, while prices have been increasing. “Packers are not shy about needing hogs as prices increase,” Total Farm Marketing said. “Traders to continue buy breaks – market trend still upward. Hog slaughter projected at 483,000. Cash lean index for June 4: up 1.76 at 116.51.”
“Exports for the month represented 27.9% of production for the month of April,” the Hightower Report said. “China imported 149.1 mln pounds which was down from March, and down from the record high of near 257 mln pounds. Pork cutout values at midsession came in at $135.06, up $0.12 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 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 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 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.”