[Weds]: Afternoon National Slaughter Cattle Review / In negotiated cash sales in Nebraska, the USDA reported 3,262 head sold live for $123, and 595 head sold dressed for $198-201. In Iowa/Minnesota, there were 123 head sold live for $120-124, and 53 head sold dressed for $197… Boxed beef cutout values this afternoon were lower… Analysts are watching to see what impact weakness in boxed beef prices might have. “Futures have moved back into consolidation price ranges,” Total Farm Marketing said. "Weakness in boxed beef may keep cash prices from rising. Cattle slaughter projected at 121,000. Feeder Cattle Cash Index for July 12: up 0.83 at 152.99”…

 

Farm Commodity Newsletter/Iowa Farmer Today

Wed 7/14/2021 4:32 PM

 

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

 

Choice was down 46 cents to $272.88/cwt.

Select was $2.99 lower to $253.75.

 

In negotiated cash sales in Nebraska, the USDA reported 3,262 head sold live for $123, and 595 head sold dressed for $198-201. In Iowa/Minnesota, there were 123 head sold live for $120-124, and 53 head sold dressed for $197.

 

Analysts are watching to see what impact weakness in boxed beef prices might have. “Futures have moved back into consolidation price ranges,” Total Farm Marketing said. "Weakness in boxed beef may keep cash prices from rising. Cattle slaughter projected at 121,000. Feeder Cattle Cash Index for July 12: up 0.83 at 152.99.”

 

“With a big premium of October cattle to August cattle and August cattle trading a bit discount to the cash market, the bull spreads may do well over the near term,” the Hightower Report said. “Traders will continue to monitor slaughter weights which have been relatively light and suggest producers are current with marketings."

 

Hogs correct, cattle lower

 

“August cattle closed moderately lower on the session as the rally above yesterday's high failed to attract new buying interest,” the Hightower Report said. “A 50% correction of the June 16 to July 9 break comes in at 122.32 and the market is struggling to push past this level. A jump in grain prices help trigger selling in the feeder cattle and that helped pull cattle off of the highs.”

 

Hog markets saw some correction Wednesday. “August hogs closed moderately lower on the day after the early rally to the highest level since June 21 failed to find new buying interest,” the Hightower Report said. “The market closed higher for three sessions in a row and this has helped correct the oversold condition.”

 

Hot, dry forecast pushes grain higher

 

Grain markets moved higher on Wednesday, in part due to a hotter, drier forecast. “The grains complex saw higher trade today with soybeans, corn, and wheat higher,” Patti Uhrich, with CHS Hedging, said. “Livestock futures were lower on the higher corn price. The energy complex was lower.”

 

“Soybeans ended higher,” Steve Freed, with ADM Investor Services, said. “A hot and dry US west upper Midwest weather forecast for late next week may have triggered new buying… Talk of drier US upper Midwest weather could be offering support to a low volume and very volatile trade.”

 

Corn

 

“The corn market saw strength today with double-digit gains and average volume,” Patti Uhrich, with CHS Hedging, said. “Corn was higher and started to fill the gap left on July 6. The July contract expired today at 6.83. Ethanol production decreased 26,000 bpd to 1,041,000 bpd. Ethanol inventories held steady at 21.1 mln barrels.”

 

“Corn futures traded higher,” Steve Freed, with ADM Investor Services, said. “Talk of hot and dry upper US west Midwest weather late next week offset rains moving across parts of NE and IA. CU is back near the bottom of the July 6 gap. Need to trade near 5.88 to fill the gap. Weekly US corn export sales are estimated near 100-900 mt vs 371 last week.”

 

Soybeans

 

Fund buying and a hot, dry weather outlook pushed beans higher Wednesday. “The soybean market closed higher on fund buying and hotter forecasts,” Patti Uhrich, with CHS Hedging, said. “Beans were higher with the November contract filling the gap left on the charts after the Independence Day holiday and traded above the 50-day moving average.”

 

“Weekly US soybean export sales are estimated near 100-900 mt vs 182 last week,” Steve Freed, with ADM Investor Services, said. “Trade estimated US June NOPA soybean crush near 159.5 mln bu. vs 163.5 in May and 167.3 last year. Some feel crush may have slowed due to lower soymeal demand.”

 

Wheat

 

“Wheat followed corn and soybeans higher as the forecast looks hot and dry,” Patti Uhrich, with CHS Hedging, said. “September closes: Mpls at $8.72 ¾ (reaching a new contract high), up 11 cents, KC at $6.27 ¾, up 16, Chicago at $6.54 ¼, up 20 ½ cents. Estimated fund activity in wheat showed +10,000 contracts.”

 

“Lower US/Canada wheat crops supportive,” Steve Freed, with ADM Investor Services, said. “Canada wheat crop could drop to 21 mmt from USDA WOB 31.5. There is also talk that rain is delaying Europe wheat harvest and raising concern about quality. There is also talk that Russia wheat crop size is dropping due to hot/dry weather.”

 

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