[Thurs] 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.” / National Daily Hog and Pork Summary: Natl: $70.18, +$0.17; IA/MN: $70.84; WCB: $71.12; ECB: $69.77; Cutout: $112.26, -$0.60 ...
Farm Commodity Newsletter/Iowa Farmer Today
Thu 10/7/2021 4:26 PM
In weighted average negotiated prices for barrows and gilts, USDA reported;
National carcass base was 17 cents higher to $70.18/cwt.
National live price was not reported due to confidentiality
Iowa-Minnesota carcass base was $70.84
USDA reported carcass cutout values this afternoon were 60 cents lower to $112.26/cwt.
“There is a large gap on the charts below current levels,” Total Farm Marketing said. “Tight hog supplies may have already been factored into futures price. Packers are able to obtain hog numbers to fill demand without much trouble. National Direct Afternoon report declined 1.25. CME Lean Hog Index for 10/7: down 0.60 at 93.51.
“U.S. pork export sales for the week ending September 30 came in at 22,108 tonnes, down from 42,547 the previous week and the lowest since August 12,” the Hightower Report said. “The average of the previous four weeks is 33,570 tonnes. Mexico was the largest buyer this week at 16,013 tonnes.”
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.”