Date: July 3rd, 2019
Have a Happy and Safe Independence Day!
Livestock futures were mixed yesterday with fats steady to weaker on light volume, feeders with another triple digit higher day and lean hogs higher nearby but lower on the deferred contracts. Overall trading was limited with the Independence Day break coming Thursday and most looking to get cash feedlot complete ahead of the day off. There has been some light cash feedlot trade so far this week steady with last week at $108 to $111.50 live and $177 to $180 dressed.
Joplin Regional Stockyards Feeder Cattle – Carthage, MO
Livestock Weighted Average Report for 7/1/2019
Total Receipts: 5,985 Last Week: 10,718 Last Year: 6,123
Compared to last Monday’s sale, steers and heifers steady, except steer calves over 500 lbs steady to 3.00 higher and heifer calves under 500 lbs 2.00 to 4.00 lower.
Tulsa Livestock Auction – Tulsa, OK
Livestock Weighted Average Report for 7/1/2019
Total Receipts: 2,120 Last Week: 1,249 Last Year: 1,597
Compared to last week: Steers 5.00-8.00 higher. Heifers 4.00-6.00 higher. Quality plain thru average. Demand good. Slaughter cows 3.00-5.00 higher. Slaughter bulls 2.00 lower.
Oklahoma National Stockyards Feeder Cattle – Oklahoma City, OK
Livestock Weighted Average Report for 7/1/2019
Total Receipts: 5,353 Last Week: 7,121 Last Year: 2,026
Compared to last week: All classes of feeder cattle and calves lightly tested. Feeder steers 2.00-4.00 higher. Feeder heifers 1.00-3.00 higher. Steer calves 2.00-5.00 higher. Heifer calves steady to 2.00 higher. Short weaned or unweaned calves sold at a sharp decline from the weaned calves
Cattle slaughter from Tuesday estimated at 123,000 head, up 2,000 from last week and up 4,000 from last year. Hog slaughter from Tuesday estimated at 480,000 head, up 5,000 compared to a week ago and up 17,000 compared to a year ago.
Boxed beef cutout values firm on moderate demand and offerings for a total of 142 loads sold.
Choice Cutout__220.47 +.75
Select Cutout__195.99 +.35
CME Feeder Index__133.94 +.46
CME Lean Hog Index__74.97 -1.08
Pork Carcass Cutout__73.21 -.07
Due to packer submission errors, no daily direct hog market updates
IA-S.MN Wtd Avg Carcass Base__68.97 -.09 from Monday
National Wtd Avg Carcass Base__68.15 -.03 from Monday
August live cattle choppy over the past month from the contract low at $101.97 up to the June high at $107.17. August feeders into a new contract low last Monday at $130.95 with support next at $128.57, the nearby weekly low from last year, resistance up at $140 then $146. July lean hogs holding the recent low so far at $72.00 with the contact low down at $70.05 and resistance up near $84.
Over in the grains, the back and forth action continues with yesterday corn staying a few cents higher but soybeans pulling back as wheat continues to be under pressure. Crop conditions were unchanged for the fall crops Monday after the close and winter wheat harvest came in at 30% complete, matching expectations. Egypt announced a snap tender and not a surprise bought another cargo from Romania with no U.S. wheat offered. The surprise was seeing Russian wheat offered some $4/MT higher which could lead to a drop in values and additional pressure on world values moving forward.
Day 5, Kansas Wheat Harvest Report – Posted July 2, 2019
This is day 5 of the Kansas Wheat Harvest Reports, brought to you by the Kansas Wheat Commission, Kansas Association of Wheat Growers and the Kansas Grain and Feed Association.
It’s the tale of two crops during the 2019 Kansas wheat harvest as some pockets of harvested acres are seeing above average yields and test weights while other areas are battling drowned acres, severe lodging, weed pressure and on top of it all, low yields. Combines are continuing to roll northward as some are anxious to start (while others are anxious to finish) before the Fourth of July celebrations.
Overnight, grains were firm after wheat and soybeans posted new recent lows. Corn finished 3 to 6 higher, soybeans 5 to 6 higher and wheat steady to 4 higher.
Not much new news overnight. U.S. markets will be closed tomorrow in observance of Independence Day and back open Friday. The next USDA crop report comes out next Thursday the 11th as the main question remains to be centered on corn acres. The June monthly crop report showed a drop of 3 million planted acres while the June acreage report only dropped a million. USDA Under Secretary Northey stated earlier this week that he believes total prevent plant acres will be at least 10 million acres.
Rains come back into the mix locally now through early next week with 1 to 4 inches in the forecast from NC KS up thru NE, IA, MN and the Northern Plains. The latest 6 to 10 day outlook still showing above normal precip for all except the Southwest and normal to below normal temps for most with above normal in the Southeast and West Coast.
September corn with a massive reversal lower last Friday with support holding near $4.13, December support holding near $4.20. Resistance is up near $4.40 for September and $4.50 for the December contract. The higher trend for soybeans was taken out this week, now showing a lower nearby trend with support for the August contact next at $8.60, November at $8.80, resistance up at $9.15 then $9.30 for August and $9.30 then $9.50 for the November contract. September KC wheat breaking below the month long sideways trend and below all major moving averages with a new recent low at $4.31, support next at $4.12. September Chicago wheat breaking the higher trend that was in place since mid-May. Support being tested now near the $5 mark with resistance up at $5.28. August Soybean Meal on a lower trend with support at $304 and resistance up at $329.
Loewen and Associates, Inc.
Pete Loewen / Matt Hines / Doug Biswell / Matt Burgener
www.loewenassociates.com pete@loewenassociates.com matt@loewenassociates.com
866-341-6700