[Mon] “Increasing supply in a period when demand could struggle due to cheap hog prices in China helped to pressure,” The Hightower Report said... / National Daily Hog and Pork Summary: Natl: $84.48, -$1.38; IA/MN: $86.99; WCB: $86.99; ECB: N/A; Cutout: $100.57, -$4.53 ...
Farm Commodity Newsletter/Iowa Farmer Today
Mon 9/13/2021 4:32 PM
In weighted average negotiated prices for barrows and gilts, USDA reported;
National carcass base up $1.38 to $84.48/cwt.
National live was up $3.13, to $66.55
Iowa-Minnesota carcass base was reported at $86.99
USDA reported carcass cutout values this afternoon fell $4.53 at $100.57/cwt.
“Increasing supply in a period when demand could struggle due to cheap hog prices in China helped to pressure,” The Hightower Report said.
The hog market saw technical support broken on Friday, leading to further lower trade today, Total Farm Marketing said.
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.
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.”
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.”
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.”