[Tues] Boxed beef cutout values this afternoon were lower… Afternoon National Slaughter Cattle Review: So far for Tuesday negotiated cash trading has been at a standstill in Kansas and Nebraska. In the Texas Panhandle and Western Cornbelt negotiated cash trading has been mostly inactive with very light demand. Not enough purchases for a market trend. Last week in the Southern Plains live purchases traded at 124.00. For the prior week in Nebraska live and dressed purchases traded from 122.00-124.00 and at 196.00, respectively. For previous week in the Western Cornbelt live and dressed purchases traded at 122.00 and from 193.00-196.00, respectively.
Farm Commodity Newsletter/Iowa Farmer Today
Tue 10/12/2021 4:17 PM
Boxed beef cutout values this afternoon were lower on Choice and Select, the USDA said.
Choice fell 5 cents to $281.07/cwt.
Select fell $2.29 to $261.35/cwt.
In negotiated cash sales in Nebraska, the USDA reported none sold live or dressed. In negotiated cash sales in Iowa/Minnesota, the USDA reported 37 head sold live at 122 and 39 head sold dressed at $192.
A developing issue in the U.S. is falling demand for higher-priced beef cuts, which could emerge as consumer spendable income appears to be on the decline, according to the Hightower Report.
Calves are making up a bigger percentage of the receipts in auctions around the country, with the few yearlings around commanding higher prices, according to Corbitt Wall on National Beef Wire.
Competition for cattle expected
Traders believe there will be more competition for acquiring feeder cattle down the road as the drought has caused more slaughter of beef cows.
“After this year, we could see smaller numbers heading to feedlots, creating more competition for cattle,” said Ben DiCostanzo of Walsh Trading.
Cattle futures are holding near gains from last week despite concern around demand and boxed beef weakness, according to Total Farm Marketing.
Double-digit losses on WASDE report
Today’s WASDE report was pretty much in line with market expectations — bearish soybeans, neutral corn and supportive wheat, according to ADM Investor Services.
Both corn and soybean markets saw double-digit losses as production and carryout numbers increase, while wheat was about the only stronger market on the close today, according to Nick Paumen of CHS Hedging.
China revised down domestic corn output estimate by 850,000 tons from the previous month to 271 mln tons in 2021-22, according to China Agricultural Supply and Demand Estimates, ADM Investor Services reported.
The USDA might lower corn export estimates due to the slow start caused by Hurricane Ida, according to Total Farm Marketing.
Brazil’s soy planting was 10% finished as of Oct. 7, compared with 4% a week earlier and 3% a year earlier, according to AgRural. Mato Grosso leads the pace, with current planting above the 5-year average.
The delayed Export Inspections data showed 1.612 MMT of beans were shipped through the week ending Oct. 7, according to Alan Brugler of Brugler Marketing. That was down from 2.47 MMT during the same week last season.
WASDE data showed that wheat stocks are expected to total 580 mbu come June 1, 2022. The trade was looking for a carryout of 576 on average, but stocks were still down from 615 mbu estimated in September’s WASDE, according to Alan Brugler.
Support for wheat comes from the rise of Russian wheat prices and tight supplies of European milling wheat, according to Total Farm Marketing.