[Mon] Boxed beef cutout values this afternoon were steady on Choice and higher on Select… With the packing plant shut down, Oliver Sloup of Blue Line Futures said historically this could be a buying opportunity as the market is already oversold. He said this might be a good time to consider a long position in the market… / Afternoon National Slaughter Cattle Review: Thus far for Monday negotiated cash trading has been at a standstill in all feeding regions. Last week in the Texas Panhandle live purchases traded mostly at 124.00. In Kansas live purchases traded from 123.00-124.00 for the prior week. For the previous week in Nebraska live and dressed purchases traded from 124.00-126.00 and 198.00-203.00, respectively. Last week in the Western Cornbelt live and dressed purchases traded from 124.00-127.00 and 198.00-203.00, respectively.

 

Farm Commodity Newsletter/Iowa Farmer Today

Mon 9/13/2021 4:32 PM

 

Boxed beef cutout values this afternoon were steady on Choice and higher on Select on light to moderate demand and light offerings, USDA said.

 

Choice fell $1.29 to $325.93/cwt.

Select went down $1.21 to $292.16.

 

There were no reported negotiated cash sales in Nebraska or Iowa/Minnesota, USDA said.

 

With the packing plant shut down, Oliver Sloup of Blue Line Futures said historically this could be a buying opportunity as the market is already oversold. He said this might be a good time to consider a long position in the market.

 

Cattle markets are showing oversold levels “and the market acts like a spike low may be in place,” The Hightower Report said. “Long liquidation selling emerged to drive the market sharply lower.”

 

Fire weighs on cattle markets

 

The cattle market moved lower throughout the day as talk of a fire at a Nebraska JBS packing plant was “seen as a potential negative force,” The Hightower Report said. The company believes they will reopen soon.

 

Hog markets were “sharply lower” today as the market is at its lowest point since early March. “Volume has been increasing the last several days and open interest is down,” The Hightower Report said.

 

Natural gas hitting highs

 

Natural gas took the headlines in commodity markets today, Total Farm Marketing said, as futures are on a “steady climb higher.” The market is now at its highest point in 8 years, with a tight supply picture, combined with the impacts of Hurricane Ida. “Domestic demand is growing, and with winter around the corner, the competition for supplies only accelerates the price move.”

 

Grain trade was mixed today as export inspections “are on the low side” as facilities recover from Hurricane Ida, Pattie Uhrich of CHS Hedging said.

 

Corn

 

Harvest pressure is hitting the corn market as the U.S. harvest progress is at 4% today, Pattie Uhrich of CHS Hedging said. The corn is showing a condition of 58% good-to-excellent, down one point from last week.

 

That pressure isn’t surprising to Oliver Sloup, but some of it might be “baked into the cake,” he said. “The sellers might have already sold, but the lack of follow through in this week is a caution flag.”

 

Soybeans

 

Soybean markets are also slightly lower today with “near-record yields” expected, Pattie Uhrich of CHS Hedging said.

 

“If U.S. yield happens to be less than expected, or South America experiences weather issues, prices will waste little time rationing supply through higher prices,” Total Farm Marketing said. “For now, as we’ve argued the last several weeks, end users remain hand to mouth and the inability of futures prices to hold gains suggest that both the trade and end buyer remain reluctant purchasing as needed.”

 

Wheat

 

Supply concerns are hitting the wheat market as the winter wheat crop moved to 12% planted in today’s report, Pattie Uhrich of CHS Hedging said.

 

“Early this morning, corn and wheat both were down hard, wheat pressured more by spillover from Paris milling futures,” Total Farm Marketing said. “The trade was still processing last week’s Stats Canada report that dropped their production numbers, but still not as much as the trade had anticipated.”

 

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