[Weds]: … “The cash market has held up better than many traders have expected and with weights relatively light, traders see feedlots as current with marketings,” The Hightower Report said. The market also may also be exiting oversold territory, indicating gains may be limited soon… In negotiated cash sales in Nebraska, the USDA reported 4,154 head sold live at $120, with 1,711 sold dressed at $195-200. In Iowa/Minnesota, 260 head were sold live at $122-124, and 483 head were sold dressed at $195… Boxed beef cutout values this afternoon were slightly higher…

 

 Afternoon National Slaughter Cattle Review /

 

Farm Commodity Newsletter/Iowa Farmer Today

Wed 7/21/2021 4:50 PM

 

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

 

Choice rose 36 cents to $265.24/cwt.

Select went up 19 cents to $248.77.

 

In negotiated cash sales in Nebraska, the USDA reported 4,154 head sold live at $120, with 1,711 sold dressed at $195-200. In Iowa/Minnesota, 260 head were sold live at $122-124, and 483 head were sold dressed at $195.

 

Cattle weights are lighter “indicating feedlots are current with marketing,” Total Farm Marketing said. “No cash trade yet as packers are resisting feedlot asking prices,” they said.

 

“The cash market has held up better than many traders have expected and with weights relatively light, traders see feedlots as current with marketings,” The Hightower Report said. The market also may also be exiting oversold territory, indicating gains may be limited soon.

 

Cattle, hogs see gains on Wednesday

 

Cattle markets were two-sided today, but managed to see higher closes, making for “impressive technical action,” The Hightower Report said. “The early selloff to challenge Monday’s low failed to find new selling interest and rallied sharply.”

 

Hogs also saw sizable gains on the day, with the August and October contracts trading at a “stiff discount” to the cash market, The Hightower Report said. “Ideas that demand remains strong over the near term has helped to support.”

 

Outside markets support grains

 

Equity markets rose again today after Monday’s drop, and energy markets rebounded nicely as well, providing some support to the commodity markets, CHS Hedging’s Bryant Sanderson said.

 

COVID remains an issue to watch, Sanderson said, as mask mandates are coming back in parts of California and Nevada. The Delta variant is continuing to make up most of the new cases being reported.

 

Corn

 

Corn markets continue to see reluctance from managed funds “on feelings that 10 days of warm/dry U.S. Midwest weather may not be long enough to drop U.S. corn yield enough to push futures higher,” ADM Investor Services said.

 

Price action was back and forth today in corn, Bryant Sanderson of CHS Hedging said. “The September and December contracts failed to fill their respective price gaps on the charts from July 2,” Sanderson said.

 

Ethanol production was down 13,000 barrels per day, to 1.03 mln per day in the latest report, Sanderson noted, while ethanol stocks were up 1.38 mln barrels.

 

Soybeans

 

Soybean crushers “continue to be buyers at elevated margins,” ADM Investor Services said. “Funds continue to be concerned about a lack of China buying new crop U.S. soybeans,” they said, as they may be switching from Brazil to Argentina beans.

 

Exports have slowed in soybeans, Total Farm Marketing said, but the U.S. is “almost on par with Brazil soy prices.”

 

Wheat

 

The wheat market “is trying to price itself out of feed rations,” Total Farm Marketing said. Profit-taking hit Minneapolis as some small rains hit the market, but rising world wheat prices continue to provide support.

 

“China continues to be rumored to have bought some US winter wheat,” Bryant Sanderson of CHS Hedging said. “There also appeared to be some spread liquidation with the Minneapolis getting sold.”

 

iowafarmertoday.com