Date: September 2nd, 2020
It was a mostly higher day across the Ag commodities yesterday. Cattle futures were mixed as lean hogs moved higher. Cash feedlot trade as begun already this week at lower money again. Trade has been reported in the South at $103 to $104 live which is a $1 lower than last week while trade in the North is $2 to $4 lower at $103 live and $163 to $164 on a dressed basis.
Joplin Regional Stockyards Feeder Cattle – Carthage, MO
Livestock Weighted Average Report for 8/31/2020
Total Receipts: 5,751 Last Week: 5,446 Last Year: 0
Compared to last week, steer calves and yearlings steady, except yearlings over 800 lbs weak to 2.00 lower, heifer calves steady to 3.00 higher. Demand moderate to good, supply moderate.
Oklahoma National Stockyards Feeder Cattle – Oklahoma City, OK
Livestock Weighted Average Report for 8/31/2020
Total Receipts: 9,416 Last Week: 8,498 Last Year: 0
Compared to last week: Feeder steers are trading 4.00-7.00 lower. Feeder heifers 1.00-5.00 lower. Steer calves mostly steady to weak, heifer calves traded 2.00-4.00 lower. Demand moderate to light. Quality attractive to plain, mostly average.
Tulsa Livestock Auction – Tulsa, OK
Livestock Weighted Average Report for 8/31/2020
Total Receipts: 2,880 Last Week: 2,228 Last Year: 0
Compared to last week: Feeder Steers 1.00-3.00 higher. Steer calves 5.00-7.00 lower. Heifers 7.00-9.00 lower. Demand good. Quality good. Slaughter cows 4.00-6.00 higher. Slaughter bulls 3.00 higher.
Cattle slaughter from Tuesday estimated at 120,000 head, up 2,000 from last week and up 6,000 from last year. Hog slaughter from Tuesday estimated at 480,000 head, up 4,000 from a week ago and up 5,000 compared to a year ago.
Boxed beef cutout values, Choice higher and Select lower with 124 loads sold on Tuesday.
Choice Cutout__228.34 +.39
Select Cutout__214.75 -.57
CME Feeder Index__140.95 -.61
CME Lean Hog Index__56.80 +.20
Pork Carcass Cutout__74.54 +1.92
IA-S.MN Wtd Avg Carcass Base__42.59 -.22
National Wtd Avg Carcass Base__43.03 unchanged
October live cattle breaking the long term higher trend last week with support at $104.50 then $103.65 and resistance around $111 then $114.50. September feeders gapping lower and breaking the long term higher trend last week with support next at $136 and resistance around $149 then up at $153.22. October lean hogs holding a month long higher trend with resistance next at $56.70 then around $60 and support around $53 then $51.
Grains were higher yesterday after a shaky start in the overnight. Fall crop conditions were lower again in Monday’s USDA report. China continues buy U.S. grains, with another 23.5 MBU purchase of corn announced by USDA yesterday morning and 2 cargoes of soybeans for unknown destinations. Wheat was the leader higher yesterday as it truly has been the follower to corn and soybeans this past month. World wheat values have been climbing recently which is supportive along with a lower US$.
All grains pulling back lower overnight, with corn finishing 3 lower, soybeans 3 to 5 lower and wheat steady to 5 lower.
There is not a lot of fresh news out overnight or this morning. Ukraine corn prices heading higher this week as a lower corn harvest is forecasted. Brazil hitting record high domestic prices for soybeans and corn as demand remains very strong. No daily export sales announced by USDA this morning.
Rain chances continue later this week and into early next week from eastern TX up through the Great Lakes. The 6-10 day outlook still showing below normal temps across the Plains and Midwest and above normal on both coasts with above normal moisture for the eastern half of the U.S. and below normal for the western half.
September grain contracts are now in delivery with very light volume and no daily limits. December corn hitting a new 5-month high on Monday at $3.64 ¼ with resistance next up around $3.70 and support first at the 10-day moving average at $3.52. November soybeans into a new 7-month high on Monday at $9.66 ¾ with resistance at $9.70 and support at $9.31. December KC wheat hitting a new 3-month high yesterday at $4.90 ¾ with resistance at $4.95 then $5.05 and support around $4.67 then around $4.60. December Chicago wheat also a new high at $5.68 ½ with resistance around $5.75 and support at $5.25.
Loewen and Associates, Inc.
Pete Loewen / Matt Hines / Doug Biswell
www.loewenassociates.com matt@loewenassociates.com
866-341-6700