[Weds] Boxed beef cutout values this afternoon were lower… In negotiated cash sales in Nebraska, the USDA reported 5,918 head sold live for $122-124, and 7,711 head sold dressed for $193-196. In Iowa/Minnesota, there were 974 head sold live for $122-124, and 2,503 head sold dressed for $192-196… “With total beef slaughter down 4.1 from last year, cattle numbers may be tightening, but packers are still passive in their bids for cash cattle,” Total Farm Marketing said… / Afternoon National Slaughter Cattle Review: Thus far for Wednesday in the Southern Plains and Nebraska negotiated cash trading has been slow with moderate demand. In the Texas Panhandle live purchases traded steady at 124.00 when compared to last week. In Kansas live purchases traded steady to 2.00 higher at 124.00 when compared to the prior week. In Nebraska live purchases traded steady to 2.00 higher from 122.00-124.00 and dressed purchases traded steady at 196.00 when ompared to the previous week. So far for Wednesday in the Western Cornbelt negotiated cash trading has been limited on light demand. A few dressed purchases traded at 196.00. Not enough for a market trend. Last week live and dressed purchases traded mostly at 122.00 and from 192.00-197.00, respectively.
Farm Commodity Newsletter/Iowa Farmer Today
Wed 10/6/2021 4:51 PM
Boxed beef cutout values this afternoon were lower on both Choice and Select, the USDA said.
Choice was down $1.09 to $286.62/cwt.
Select was $4.87 lower to $262.91.
In negotiated cash sales in Nebraska, the USDA reported 5,918 head sold live for $122-124, and 7,711 head sold dressed for $193-196. In Iowa/Minnesota, there were 974 head sold live for $122-124, and 2,503 head sold dressed for $192-196.
“With total beef slaughter down 4.1 from last year, cattle numbers may be tightening, but packers are still passive in their bids for cash cattle,” Total Farm Marketing said. “With daily slaughter at 121,000 today, which was 5,000 head over last week, there still doesn’t seem to be any urgency for packers to bid up for cattle.”
Traders were watching what impact yesterday’s cash trades had for cattle futures markets today. “Tuesday cash trades were mostly $124 on light Southern activity,” Brugler Marketing said. “USDA also mentioned some $122 sales in Kansas. Feeder cattle futures trading has the board up by triple digits with gains of as much as $1.60 so far.”
Cattle choppy, but higher
“Overall, (cattle) trade on Wednesday was choppy, but front-month futures pulled in line with the start of cash trade for the week,” Total Farm Marketing said. “Light to moderate trade developed today with most deals tagged at $124 in the South, steady to $1 higher in some areas… The bulk of trade will likely develop more into the end of the week.”
“Thursday also brings the next round of (pork) export sales numbers,” Total Farm Marketing said. “Last week was strong at 42,000 mt, and the market will be watching the actions of China on the report. The Lean Hog Index traded 0.06 higher to 94.11. Holding a premium to October and December hogs should help support the front of the market.”
Crop markets swing as corn, soybeans drop
It was a day of swings for crop markets, as overnight moves higher were follower by a down day for corn and soybeans. “Wild day in the markets with higher trade over night and early in the morning but seeing a one-two punch lower for the row crops, shortly after the break,” Ami Heesch, with CHS Hedging, said.
Analysts are watching trends in the soybean basis, and what impact it could have for markets. “The national average soybean basis according to cmdtyVew is 42 cents under November. Cash bids for November delivery have been between 40-50 cents under the Nov board price since February,” Brugler Marketing said.
“The corn market traded lower as the harvest ramps up and reports of as expected or better than expected yields,” Ami Heesch, with CHS Hedging, said. “Losses were limited somewhat from strength in the wheat market. Weekly ethanol production increased 64,000 barrels per day this week to 978,000 barrels per day, while stocks dropped slightly to just below 20.0 mln barrels.”
“Demand will be a feature in the trade moving forward as the harvest moves to its halfway point,” Jack Scoville, Price Futures Group, said. “Trends are mixed to up on the weekly charts and are mixed on the daily charts. Initial yield reports have been mixed, with some lower yields reported due to disease.”
Soybeans also moved lower Wednesday due to a number of factors. “Soybeans were on the defensive from weakness in soyoil and harvest pressure,” Ami Heesch, with CHS Hedging, said. “Soyoil tumbled on a bout of profit taking while the soymeal market got some relief as the bargain hunters appeared to have surfaced.”
Traders are watching updates on exports from Brazil. "Brazil’s Trade Ministry reported soybean shipments to China reached 3.5 MMT during September,” Brugler Marketing said. “In September 2020 Brazil shipped China 3.3 MMT. Total bean shipments from Brazil during September were 4.8 MMT.”
“The wheat market squirreled higher on a bit of bargain buying interest with gains limited from slowed demand for US wheat,” Ami Heesch, with CHS Hedging, said. “Egypt bought 180,000 tonnes of Russian wheat and 60,000 tonnes of Ukrainian wheat for November shipment from $350-$352/tonne C&F.”
“The US and Canada have reduced production this year and so do most exporters around the world,” Jack Scoville, Price Futures Group, said. “Production is less this year in Russia and internal prices have been strong. Dry weather in southern Russia as well as the northern US Great Plains and Canadian Prairies remains a supportive feature in the market.”