[Fri] Boxed beef cutout values this afternoon were lower… Traders are “giving up hoping exports improve on beef,” ADM Investor Services said. “Cold storage reports show beef is being moved and not held but with too many Select cattle, retailers are able to have big mark ups on Select, have better margins on Select cuts, blend more Select and it keeps pressure on Choice.” / Afternoon National Slaughter Cattle Review: Thus far for Friday negotiated cash trading has been mostly inactive on very light demand in all major feeding regions. Not enough purchases in any region for a full market trend. On Wednesday in Nebraska live and dressed purchases traded at 126.00 and from 200.00-203.00, respectively. In the Western Cornbelt on Wednesday, live purchases traded from 125.00-126.00. The latest dressed market in the Western Cornbelt was last week from 202.00-208.00. Last week in the Texas Panhandle live purchases traded from 122.00-123.00. In Kansas last week, live purchases traded at 123.00.
Farm Commodity Newsletter/Iowa Farmer Today
Fri 9/3/2021 3:53 PM
Boxed beef cutout values this afternoon were lower on Choice and Select, USDA said.
Choice fell $1.50 to $336.42/cwt.
Select went down 84 cents to $304.13.
In negotiated cash sales in Nebraska, the USDA reported 159 head sold dressed at $203, with no live sales. In Iowa/Minnesota, 240 head were sold live at $126, and with no dressed sales.
Feeder cattle is dealing with a “severe break” that is spilling into the live cattle market, Total Farm Marketing said, as cash markets are “refusing” to trade higher.
Traders are “giving up hoping exports improve on beef,” ADM Investor Services said. “Cold storage reports show beef is being moved and not held but with too many Select cattle, retailers are able to have big mark ups on Select, have better margins on Select cuts, blend more Select and it keeps pressure on Choice.”
Cattle markets slide into weekend
Cattle markets were sharply lower again, moving to their lowest points since July 21, The Hightower Report said. This marks the eighth straight day the market took out the previous day’s low. “Slaughter is coming in a little higher than expected and the cash market is moving higher at a much slower pace than many traders had expected.”
Lean hogs were mixed overall, as the market “has coiled up for much of the week,” The Hightower Report said. “longer-term bearish influences of increasing supply and lower exports will likely force the U.S. to absorb extra pork during September and October.”
Soybeans find support ahead of long weekend
U.S. stocks are mixed today after “disappointing jobs data,” Ami L. Heesch of CHS Hedging said. “Oil markets are weaker on expectations for a slowdown in demand for oil from renewed virus concerns.” She noted that the U.S. dollar also weakened after a poor jobs report.
Markets will be closed during the day on Monday for the Labor Day holiday, reopening that night into Tuesday.
Corn prices dropped as expectations for increased yields weighed on the market, Ami L. Heesch of CHS Hedging said. “Prices drew additional pressure from expected delays in export programs after hurricane Ida,” she said.
Corn export sales were “higher than expected,” ADM Investor Services said, as managed funds continue to liquidate net longs going into U.S. harvest.
Soybean prices found support as demand continues to stay strong, Ami L. Heesch of CHS Hedging said. “Soybeans may be garnering some support from lack of improved conditions after recent rain events. Cash markets are starting to firm up a bit on lack of overall movement,” she said.
“This weeks selloff in prices was linked mostly to damage to U.S. gulf export infrastructure due to the Hurricane and some hope next week some of the elevators get power restored,” ADM Investor Services said.
Wheat markets opened and stayed higher as tight global supplies and continued demand supported prices, Ami L. Heesch of CHS Hedging said. “Harvest progress was light this week with rains across the Northern Plains,” she said.
“Talk of lower Canada and Russia crops and export supplies could help wheat futures,” ADM Investor Services said. “This week there was additional talk that the Russian wheat crop could be down enough to substantially lower their exports.”