[Fri] The Hightower Report said “Exports remain slow and this means that U.S. consumers will need to absorb more pork than normal, and this has kept the cash trend weak.” ...While front month contracts dropped today, deferred hog contracts are “holding well” and are staying in an uptrend, Total Farm Marketing said... / National Daily Hog and Pork Summary: Natl: $54.95, -$0.15; IA/MN: $54.96, -$0.88; WCB: $54.96, -$0.95; ECB: N/A; Cutout: $89.82, +$0.13 ...

 

Farm Commodity Newsletter/Iowa Farmer Today

Fri 11/19/2021 4:24 PM

 

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

 

National carcass base down 15 cents to $54.95/cwt.

National live price had no comparison at $44.07.

Iowa-Minnesota carcass base at $54.96.

 

USDA reported carcass cutout values up 13 cents at $89.82.

 

The December hog contract saw selling push the market down to the lowest point since late October, The Hightower Report said, as February hogs saw an early bounce turn lower on the day. “With continued weakness in the product markets, it is difficult for February hogs to hold a much steeper than normal premium to the cash market.”

 

With that premium, profit-taking may be to blame for the February future contract dropping, The Hightower Report said. “Exports remain slow and this means that U.S. consumers will need to absorb more pork than normal, and this has kept the cash trend weak.”

 

Exports low for hogs, higher for cattle

 

While front month contracts dropped today, deferred hog contracts are “holding well” and are staying in an uptrend, Total Farm Marketing said.

 

With cash trade moving higher yesterday, live cattle futures saw support today limiting their losses. Any big movement will come on Monday from the

Cattle on Feed report which released after the market close.

 

Energy markets weigh on corn, soybeans

 

Crop markets were mixed today, with corn and soybeans finding weakness due to “sharply lower energies,” Pattie Uhrich of CHS Hedging said. Energy markets were hurt as the pandemic resurges in European countries led by December crude oil dropping $2.91.

 

Next week marks a shorter trade week for commodities with the Thanksgiving holiday on Thursday. Markets will be open as normal through Wednesday, closed on Thursday and open for a half day on Friday.

 

Corn

 

Corn markets were choppy today, Patti Uhrich of CHS Hedging said, and for the week the December contract was down 6 ½ cents.

 

An increase in Covid cases is also weighing on energy, equity market and food demand, spilling over to corn markets, ADM Investor Services said. “Corn end user are short and need to finish buying 2021 needs. They have little 2022 coverage.”

 

Soybeans

 

Forecasts have rains coming to parts of Argentina soon, but an overall drier December, ADM Investor Services said. “Soymeal continues to gain on soyoil. Bears feel soybean prices are overbought without China buying large amounts of U.S. soybeans.”

 

Planting is ahead of schedule in Brazil, Total Farm Marketing noted, which means the rains coming will be beneficial in those locations. “Soy processors crush margins are near historic highs,” they said.

 

Wheat

 

Nearly 44% of the wheat acreage in the U.S. is under some level of drought, leading to higher trade among Chicago and Kansas City markets.

 

“Wheat futures had been trending higher on lower Canada and U.S. spring wheat supplies,” ADM Investor Services said. Record low world stocks to use ratio and higher Russia prices are supporting wheat markets as well.

 

iowafarmertoday.com