[Weds] Boxed beef cutout values this afternoon were lower… “The cash market was a bit of a bright spot today as light trade was reported in the South with sales at $124, steady to $1 higher than last week,” Total Farm Marketing said. “A light trade is also being reported in parts of the North at $203, a little more than $1. The bulk of cash trade will likely hold off for later in the week, but at least the tone looks firm.” / Afternoon National Slaughter Cattle Review: Thus far for Wednesday negotiated cash trading has been slow on light demand in Nebraska and Western Cornbelt. In Nebraska a few live and dressed purchases traded at 126.00 and 203.00, respectively. In the Western Cornbelt a few dressed purchases traded at 203.00. However, not enough purchases in either region for a full market trend. For the previous week in Nebraska live and dressed purchases traded from 125.00-126.00 and 200.00-203.00, respectively. Last week in the Western Cornbelt live and dressed purchases traded from 125.00-128.00 and 200.00-203.00, respectively. So far for Wednesday negotiated cash trading in the Southern Plains has been limited on light demand. A few live purchases traded steady at 124.00, when compared to the last reported market on Tuesday.
Farm Commodity Newsletter/Iowa Farmer Today
Wed 9/8/2021 5:05 PM
Boxed beef cutout values this afternoon were lower on both Choice and Select, the USDA said.
Choice was down 33 cents to $334.86/cwt.
Select was $3.73 lower to $298.17.
In negotiated cash sales in Nebraska, the USDA reported 3,240 head sold live for $126-127, and 4,537 head sold dressed for $203. In Iowa/Minnesota, there were no reported live sales, and 3,049 head sold dressed for $198-203.
Traders had some concerns about how the lower stock market and higher U.S. dollar could impact demand. “Demand factors remain weak with a lower stock market today and higher US dollar,” the Hightower Report said. “Boxed beef cutout values at midsession came in at $335.75, up $0.59 on the day.”
“The cash market was a bit of a bright spot today as light trade was reported in the South with sales at $124, steady to $1 higher than last week,” Total Farm Marketing said. “A light trade is also being reported in parts of the North at $203, a little more than $1. The bulk of cash trade will likely hold off for later in the week, but at least the tone looks firm.”
Hogs bounce back off lows
“October cattle closed moderately lower on the day and the selling pushed the market down to the lowest level since June 2,” the Hightower Report said. “The early rally failed to attract new buying interest. The selling also cased the market to take out the previous day's low for the 10 session in a row.”
“October hogs managed to rally sharply early in the session but closed moderately lower on the day and the selling pushed the market down to the lowest level since August 25,” the Hightower Report said. “More talk that exports could slow at the same time that supply is on the rise helped to pressure.”
Grain markets chop through Wednesday
Analysts are watching as the full swing of corn harvest gets closer, and what it could mean for markets. “On top of Ida, the harvest is quickly approaching as the corn crop, according to many producers, is maturing at a rapid pace this year,” Total Farm Marketing said. “An early start to the planting season and warm weather has helped to push the crop along.”
Wednesday was a fairly choppy day for grain markets, looking ahead to the USDA’s September Crop Report on Friday. “Grain markets had a choppy day of trade with some weakness bleeding over from wheat contracts,” Jim Warren, with CHS Hedging, said. “Outside markets were a little more muted today despite the Dollar Index continuing its strengthening.”
“The Farm Service Agency accidently released the acreage numbers, two days early, that USDA will use to help determine planted acreage in their Friday report,” Jim Warren, with CHS Hedging, said. “Corn’s Planted/Failed acres is 91.218 mln, up 910,000 from the August preliminary estimate. Failed acres alone were 81,368.”
“Corn futures were mixed,” Steve Freed, with ADM Investor Services, said. "Some feel futures could remain under pressure through harvest and due to a lack of new export sales. US farmers remain reluctant sellers due to lower futures and lower basis. Some are looking for a rally in basis or narrowing of spreads to signal a harvest low or possible post harvest bounce.”
“November soybeans reversed higher on the day after a weak start, but volume was very light today and only modest gains were held by the close,” Jim Warren, with CHS Hedging, said. “FSA’s early released acreage report showed 86.184 mln acres of Planted/Failed soybeans, up 898,000 from their August preliminary estimate. Failed acres alone was 53,131.”
“An announced sale of 106,000 mmt to China provided initial support as prices experienced double digit gains by mid-morning,” Total Farm Marketing said. “Concerns regarding export news (lack of large sales) is continuing to weigh on prices as it appears some export activity will turn to other countries due to problems at the Gulf.”
“Wheat was pressured today by the larger than expected Stats Canada stocks estimate, and a stronger Dollar didn’t help matters,” Jim Warren, with CHS Hedging, said. “FSA’s early released acreage report showed 604,990 failed acres of wheat. Stats Canada estimated their All Wheat stocks at 5.705 mmt, well above the average guess of 4.8 mmt and also above last year’s level.”
“Wheat futures continue to slide lower,” Steve Freed, with ADM Investor Services, said. “Higher than expected Canada July 31 wheat stocks trigger new selling. This followed a higher than expected estimate of Australia wheat crop… Some rain in parts of Canada may slow harvest there. Russia wheat acres remain dry for the spring crop and planting of the 2022 winter crop.”