[Thurs] “Packers are looking for hogs as plants running need demand satisfied,” Total Farm Marketing said. The discount of hog futures to the cash market is “still concerning” they said. / National Daily Hog and Pork Summary: Natl: $86.42, -$3.29; IA/MN: $89.19; WCB: $89.02; ECB: N/A; Cutout: $108.70, -$1.70 ...
Farm Commodity Newsletter/Iowa Farmer Today
Thu 9/9/2021 4:38 PM
In weighted average negotiated prices for barrows and gilts, USDA reported;
National carcass base down $3.29 to $86.42/cwt.
National live was down 24 cents to $69.24
Iowa-Minnesota carcass base was reported at $89.19
USDA reported carcass cutout values this afternoon fell $1.70 at $108.70/cwt.
“Packers are looking for hogs as plants running need demand satisfied,” Total Farm Marketing said. The discount of hog futures to the cash market is “still concerning” they said.
Technical action is negative, The Hightower report said, as the market is looking at big volume and declining open interest. “The market will need to absorb increasing production in the weeks ahead along with the potential for lower exports as China has backed away from importing big quantities of U.S. pork.”
Live cattle rebound, hogs take hit
Live cattle markets saw modest gains today, The Hightower Report said. “The market is extremely oversold with technical indicators such as slow stochastic numbers,” they said.
Hogs took a hit today after there was no new buying interest, The Hightower Report said. “The market experience aggressive selling to drive the market down to the lowest level since August 13.”
Grains put in final say ahead of Friday's report
Grain markets were pressured today, Jim Warren of CHS Hedging said as the markets prepare for the USDA release tomorrow morning.
There is an increased chance of a La Nina pattern developing this winter according to the Climate Prediction Center. They pushed the probability to 70-80%, when it was previously 70%, Warren noted.
Corn markets traded lower today before hitting the 200-day moving average, Jim Warren of CHS Hedging said. “Buyers were found waiting there and recovered to settle only ¼ cents lower on the day.” Brazil’s corn crop estimates were down just under 1 mln bushels, according to CONAB.
There are concerns that tomorrow’s report will show increased corn plantings, which “keeps trade nervous,” Total Farm Marketing said. “Ethanol production expected to be higher than last week.”
“Ongoing lack of U.S. gulf exports has also weighed on soybean futures,” ADM Investor Services said. “There is talk that a few of the gulf elevators may have or soon will get power. This will give them time to access damages and begin repairs.”
Demand is still strong with China, Total Farm Marketing said, as they continue to buy U.S. soybeans. That shows soybean prices are still competitive on the global market, they said.
Wheat took a hit today as large acreage numbers came out from the FSA overnight, Jim Warren of CHS Hedging said. Larger than expected Canadian stocks and Australian production is also weighing on the markets.
Managed funds are rolling out of a long position in Chicago to a net short, ADM Investor Services said. “Wheat futures broke below key support levels which increase chart pattern selling.”