[Thurs] Boxed beef cutout values this afternoon were lower… In negotiated cash sales in Nebraska, the USDA reported 1,045 head sold live for $122-125, and 80 head sold dressed for $196. In Iowa/Minnesota, there were 429 head sold live for $121-122, and 635 head sold dressed for $193-197… "Boxed beef weakness remains a concern,” Total Farm Marketing said. “Cash cattle have traded steady to $1 higher this week… / Afternoon National Slaughter Cattle Review: So far for Thursday negotiated cash trading has been mostly inactive with light demand in all major feeding regions. Not enough purchases for a market trend. Wednesday was the last reported market in these regions. In the Texas Panhandle live purchases traded at 124.00. In Kansas and Nebraska live purchases traded from 122.00-124.00 and dressed purchases in Nebraska traded mostly at 196.00. In the Western Cornbelt live and dressed purchases traded at 122.00 and 196.00, respectively.
Farm Commodity Newsletter/Iowa Farmer Today
Thu 10/7/2021 4:26 PM
Boxed beef cutout values this afternoon were lower on Choice and higher on Select, the USDA said.
Choice was down $1.32 to $285.30/cwt.
Select rose $1.53 to $264.44.
In negotiated cash sales in Nebraska, the USDA reported 1,045 head sold live for $122-125, and 80 head sold dressed for $196. In Iowa/Minnesota, there were 429 head sold live for $121-122, and 635 head sold dressed for $193-197.
On Thursday traders continued to watch boxed beef prices and cash cattle trends. "Boxed beef weakness remains a concern,” Total Farm Marketing said. “Cash cattle have traded steady to $1 higher this week. Choice cuts down 1.09 and select down 4.87. CME Feeder Cattle Index for 10/6: up 0.09 at 152.88.”
“Cash markets traded higher yesterday as compared with earlier in the week and up from last week,” the Hightower Report said. “However, the market remains at a stiff premium to the cash market which may limit buying on a further strong advance. US beef export sales for the week ending September 30 came in at 15,633 tonnes, down from 16,100 the previous week.”
Hogs, cattle rise Thursday
“December cattle closed sharply higher on the day and the buying pushed the market up to the highest level since September 14,” the Hightower Report said. “The technical action remains positive and traders are hopeful that beef prices will turn up over the near term to help rationalize the stiff premium of futures to the cash market.”
Hogs were higher on Thursday. “December hogs closed higher on the day but well off of the high,” the Hightower Report said. “The market opened sharply higher on the day and experienced choppy and two-sided trade. A jump and pork values yesterday helped to support the solid gains early in the session.”
Grains finish slightly higher as rains come in
“The grains markets were mostly in positive territory by the close of trade today,” Ami Heesch, with CHS Hedging, said. “Mpls (wheat) was stronger while KC and Chicago finished the day in negative territory. Mpls gained on KC and Chicago. US stock market traded higher on a US government default extension to December and optimism that employment numbers will rise.”
“Weather forecasts are predicting rain next week in the western Corn Belt, which could slow harvest there,” Total Farm Marketing said. "The eastern Corn Belt is receiving rains today… China comes back from their Golden Week holiday tomorrow – there are rumors they have been asking for US grain and ethanol prices.”
Traders are looking ahead to the next supply and demand report. “The corn market finished the day slightly higher on position evening ahead of next week’s USDA S&D report,” Ami Heesch, with CHS Hedging, said. “…The UDSA announced the sale of 314k tonnes of corn to Mexico for the 2021/22 marketing year.”
“Corn futures have equal support due to talk of lower US harvest corn yields and lack of new US farmer selling,” Steve Freed, with ADM Investor Services, said. “There is also support from dry weather in Brazil and Argentina. Matif corn futures are trading higher due to slow EU harvest and lower corn imports.”
A variety of factors helped push soybeans higher Thursday. “Soybeans traded higher on demand optimism and rain-delayed harvest activity in parts of the ECB,” Ami Heesch, with CHS Hedging, said. “The products were mixed with weakness in the meal coming from fears of ample supplies while soyoil climbs higher on strong demand.”
"Board crush margins for soybeans are the highest since October 2020,” Total Farm Marketing said. “If soybeans close lower this week, it would be the lowest weekly close since late March
Palm oil was lower overnight. Concerns over inflation still abound, in part due to rising veg oil prices – the UN stated that global food prices are the highest in a decade.”
“The wheat market traded mixed with Mpls holding strong on tight supplies, while KC and Chicago were on the defensive from poor export demand,” Ami Heesch, with CHS Hedging, said. “There has been several tenders in the works over the past week or two and the US did not appear to have gotten in on a piece of the pie.”
“Wheat futures ended mixed,” Steve Freed, with ADM Investor Services, said. “There was a wave of selling mid session on fears of lower global economies and chart basis selling. Weekly US wheat export sales continued to be slower than needed to equal USDA goal. Some feel that next week, USDA should drop US 2021 all wheat crop.”