[Fri] “The Biden Administration is taking tougher stance on meat packing industry due to high consumer prices,” Total Farm Marketing said. “Packers are refusing to pay more with boxed beef prices falling. Choice cuts down 2.28 and Select down 1.72 yesterday… / Afternoon National Slaughter Cattle Review: Thus far for Friday negotiated cash trading has been mostly inactive with light demand in all feeding regions. Not enough purchase for a full market trend. In the Texas Panhandle on Wednesday live purchases traded from 123.00-124.00. In Kansas on Thursday live purchases traded at 123.00. In Nebraska on Thursday live and dressed purchases traded from 124.00-125.00 and at 198.00, respectively. In the Western Cornbelt on Thursday live purchases traded from 124.00-127.00 and on Wednesday dressed purchases traded at 203.00.
Farm Commodity Newsletter/Iowa Farmer Today
Fri 9/10/2021 4:45 PM
Boxed beef cutout values this afternoon were lower on both Choice and Select, the USDA said.
Choice was down $5.36 to $327.22/cwt.
Select was $3.08 lower to $293.37.
In negotiated cash sales in Nebraska, the USDA reported 544 head sold live for $126, and 20 head sold dressed for $203. In Iowa/Minnesota, there were 1,090 head sold live for $125-126, and no reported dressed sales.
“U.S. beef export sales for the week ending Sept. 2 came in at 12,842 tonnes versus 15,555 the previous week and a 4-week average of 12,705,” the Hightower Report said. “Cumulative sales for 2021 have reached 833,700 tonnes versus 690,900 a year ago and the highest on record. The 5-year average is 652,600.”
“The Biden Administration is taking tougher stance on meat packing industry due to high consumer prices,” Total Farm Marketing said. “Packers are refusing to pay more with boxed beef prices falling. Choice cuts down 2.28 and Select down 1.72 yesterday. Cattle slaughter projected at 118,000. CME feeder cattle Index for Sept 8: down 64 cents at 156.83.”
‘Aggressive selling’ for hogs
“October cattle closed lower on the session with a range similar to Wednesday and Thursday,” the Hightower Report said. “After the 11-day collapse, the inside trading session yesterday might suggest either a recovery bounce, or at least some short-term consolidation. The market is trading discount to the cash market as traders see short-term demand indicators as bearish.”
“October hogs closed sharply lower and the selling pushed the market down to the lowest level since June 24,” the Hightower Report said. “The aggressive selling developed even after better-than-expected export demand from China. Cash markets remain in a steady downtrend, and this seems to be helping to rationalize the stiff discount of futures to the cash market.”
Crop report leads to reversal
The September USDA Crop Production report released this morning was the focus of grain trade today, and also affected livestock futures to some extent, Jim Warren, with CHS Hedging, said. “December corn broke below $5 just after the crop report was released, but found plenty of buyers there and rallied to end the day with a key reversal higher,” he said.
“USDA actually lowered U.S. 2021 soybean acres from 87.6 mln to 87.2,” Steve Freed, with ADM Investor Services, said. “As expected, they raised U.S. yield from 50.0 to 50.6. Yields were up in MN, IA, MO, AR, MS, AL and KY. There were down in SD, NE, KS, TX, PA and TN. USDA lowered U.S. 20/21 crush 15 mln bu. Carryout was increased 15 to 175.”
“Corn futures ended higher,” Steve Freed, with ADM Investor Services, said. “Some might say that the corn market may have bought the fact after spending most of August selling the rumor. Trade was looking for USDA to raise U.S. corn and sorghum 2021 acres, corn yield, U.S. 20/21 and 21/22 corn carryout and world 21/22 corn end stocks. That is what the USDA gave them.”
“(December corn) was 6 1/2 cents lower for the week,” Jim Warren, with CHS Hedging, said. “Traders are now respecting the bullish chart action, but questioning how much upside is possible with harvest on the threshold. Sunday night trade will be monitored for clues to the answer.”
Soybeans also started lower then bounced back.
“November soybeans traded down to their 200-day moving average immediately after the report was released, but like corn, found good buying there and formed a key reversal higher,” Jim Warren, with CHS Hedging, said. “Bulls would like to see follow-through action next week.”
“Soybeans and soymeal ended higher on light profit taking,” Steve Freed, with ADM Investor Services, said. “Going into the USDA report, spec traders were short looking for higher U.S. and world soybean supplies. That is what the USDA gave them, but U.S. stocks are still relatively low.”
“MPLS wheat formed a reversal higher today, while KC and Chicago settled slightly lower on the day, but well off their lows,” Jim Warren, with CHS Hedging, said. “Even so, for the week, the nearby contracts of all three classes were down 33 3/4 to 40 1/2 cents. USDA lowered the wheat carryout by 12 mln bu. to now 615 mln bu., mostly due to a decline in imports.”
“Wheat futures ended mixed,” Steve Freed, with ADM Investor Services, said. “USDA dropped U.S. 21/22 supply 10 mln bu. due to a lower import guess. USDA left U.S. 2021 wheat acres near 46.7 despite fears of higher FSA acres."