[Fri] “U.S. pork export sales for the week ending Sept. 2 came in at 33,802 tonnes versus 33,503 the previous week and a four-week average of 23,049,” the Hightower Report said. “Cumulative sales for 2021 have reached 1.445 mln tonnes, down from 1.550 at this time last year but the second highest on record. The 5-year average is 1.113 mln.” ... “Hopes of higher cash diminished yesterday,” Total Farm Marketing said. “Cutouts also fell by 1.07 yesterday. Hog slaughter projected at 475,000. CME lean hog index for Sept 8: down 78 cents at 97.96.” / National Daily Hog and Pork Summary: Natl: $85.86, -$0.56; IA/MN: $88.92; WCB: $88.81; ECB: N/A; Cutout: $105.10, -$3.60 ...

 

Farm Commodity Newsletter/Iowa Farmer Today

Fri 9/10/2021 4:45 PM

 

In weighted average negotiated prices for barrows and gilts, USDA reported:

 

National carcass base was 56 cents lower to $85.86/cwt.

National live was down $5.82 to $63.42

Iowa-Minnesota carcass base was $88.92

 

USDA reported carcass cutout values this afternoon fell $3.60 to $105.10/cwt.

 

“U.S. pork export sales for the week ending Sept. 2 came in at 33,802 tonnes versus 33,503 the previous week and a four-week average of 23,049,” the Hightower Report said. “Cumulative sales for 2021 have reached 1.445 mln tonnes, down from 1.550 at this time last year but the second highest on record. The 5-year average is 1.113 mln.”

 

Traders were watching trends in the cash market, cutout values and slaughter numbers as the week ended.

 

“Hopes of higher cash diminished yesterday,” Total Farm Marketing said. “Cutouts also fell by 1.07 yesterday. Hog slaughter projected at 475,000. CME lean hog index for Sept 8: down 78 cents at 97.96.”

 

‘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

 

“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

 

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.”

 

Wheat

 

“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."

 

iowafarmertoday.com