[Tues] There is talk out of China about hog futures rallying — their sow inventory might be down, according to Total Farm Marketing... / National Daily Hog and Pork Summary: Natl: $69.11, +$0.49; IA/MN: $69.56; WCB: $69.57; ECB: N/A; Cutout: $102.38, -$5.68 ...

 

Farm Commodity Newsletter/Iowa Farmer Today

Tue 10/12/2021 4:17 PM

 

In weighted average negotiated prices for barrows and gilts, USDA reported:

 

National carcass base up 49 cents to $69.11/cwt.

National live down 1.47 to $53.40/cwt.

Iowa-Minnesota carcass base was $69.56/cwt.

 

USDA reported carcass cutout values this afternoon down $5.63 to $102.38/cwt.

 

There is talk out of China about hog futures rallying — their sow inventory might be down, according to Total Farm Marketing.

 

Continued concerns on the lack of export interest plus the increasing supply of slaughter-ready hogs in the weeks ahead has helped pressure, according to the Hightower Report.

 

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.

 

Corn

 

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.

 

Soybeans

 

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.

 

Wheat

 

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.

 

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