[Mon.]: Afternoon National Slaughter Cattle Review / In negotiated cash sales in Iowa/Minnesota, the USDA reported 75 head sold live at $122, with no dressed sales. There were no reported sales in Nebraska… Boxed beef cutout values this afternoon were lower… Cattle markets are trading lower as the stock market is collapsing and traders are “nervous of a setback in demand,” The Hightower Report said. “Rising COVID cases worldwide does not help,” they said…
Farm Commodity Newsletter/Iowa Farmer Today
Mon 7/19/2021 4:48 PM
Boxed beef cutout values this afternoon were lower on Choice and Select, USDA said.
Choice fell $1.45 to $266.49/cwt.
Select went down $2.30 to $249.49.
In negotiated cash sales in Iowa/Minnesota, the USDA reported 75 head sold live at $122, with no dressed sales. There were no reported sales in Nebraska.
There is concern that meat packers may pull back this week, Total Farm Marketing said, and cash is likely to slow this week. The market is hoping to hold at $120 price levels, they said.
Weakness in cattle is led by the October contract, The Hightower Report said. The market is trying to hold a premium to the cash market, but the premium is “very large.”
COVID concerns hitting livestock
Cattle markets are trading lower as the stock market is collapsing and traders are “nervous of a setback in demand,” The Hightower Report said. “Rising COVID cases worldwide does not help,” they said.
Hogs, meanwhile, were choppy and two-sided, “but outside market forces were enough to drive the market sharply lower,” The Hightower Report said. “News that China pork imports for the month of June were down significantly from a year ago helped to pressure the market.”
Outside concerns hit grain markets
There are concerns about the global economy slowing down again as the COVID delta variant spreads around the United States and the World, Bryant Sanderson of CHS Hedging said.
That concern spilled over to the grain markets as well, Total Farm Marketing said. “Sharp losses in the stock market and energy complex likely had more to do with today’s losses.”
After a strong overnight session, the corn market continued to show signs of strength, Bryant Sanderson of CHS Hedging said. However, concerns about outside market pressure caused the market to fade back to slightly lower levels to close the day.
Brazilian corn values “continue to soar with production shortages,” Total Farm Marketing said. Hot and dry Ukrainian weather are also threatening corn production numbers globally, they said.
The national corn condition is at 65% good-to-excellent, holding steady from last week.
Soybean markets dropped when the market opened as equity markets put pressure on prices, Bryant Sanderson of CHS Hedging said.
The drop today is a “negative technical pattern,” ADM Investor Services said. There is concern about the 2021 crop “due to dryness across the NW Midwest” and an increase in COVID cases.
The national soybean condition rating is at 60% good-to-excellent, an increase of one point from last week.
Wheat in Minneapolis is “once again” putting in new contract highs, Total Farm Marketing said as drought continues to bolster the futures market. “Canada’s crop is believed to be largely overstated,” they said.
Dry weather in Russia is also offering support to the wheat market, ADM Investor Services said, while wet weather in the EU “also raised concern about quality there.”
Spring wheat conditions are at 11% good-to-excellent, a 5 point decline from last week, while 63% of the crop is in the very poor and poor categories.