Date: October 13th, 2020
Livestock futures mixed to mostly lower to start this week. Live cattle posted the worst daily loss since this past summer as feeders did slip lower but held off from a complete collapse with corn under pressure yesterday. Cash feedlot trade reported yesterday at $109 live in TX, steady with last week.
Joplin Regional Stockyards Feeder Cattle – Carthage, MO
Livestock Weighted Average Report for 10/12/2020
Total Receipts: 5,433 Last Week: 5,082 Last Year: 6,788
Compared to last week, steers under 700 lbs 3.00 to 5.00 lower, over 700 lbs steady to 3.00 lower, heifer calves steady to 3.00 lower, yearlings heifers steady.
Oklahoma National Stockyards Feeder Cattle – Oklahoma City, OK
Livestock Weighted Average Report for 10/12/2020
Total Receipts: prelim 7,000 Last Week: 5,527 Last Year: 7,762
Compared to last week: Feeder steers and heifers are trading 6.00-8.00 lower, instances 10.00 lower. Steer and heifer calves traded 4.00- 6.00 lower, few trades sharply lower as much as 8.00-10.00 lower.
Tulsa Livestock Auction – Tulsa, OK
Livestock Weighted Average Report for 10/12/2020
Total Receipts: 3,797 Last Week: 3,888 Last Year: 4,401
Compared to last week: Steers mostly steady. Heifers 2.00-4.00 lower. Demand good. Quality good. Slaughter cows 3.00 higher. Slaughter bulls steady.
Cattle slaughter from Monday estimated at 117,000 head, up 1,000 from last week and up 2,000 from last year. Hog slaughter from Monday estimated at 490,000 head, also up 1,000 compared to last week but down 3,000 compared to a year ago.
Boxed beef cutout values higher with 127 loads sold on Monday.
Choice Cutout__214.62 +.56
Select Cutout__200.34 +.52
CME Feeder Index__141.28 -.64
CME Lean Hog Index__78.14 +.43
Pork Carcass Cutout__94.31 -.49
October live cattle tested and held support around $108 yesterday with the next down around $106 and resistance up $110.30 then $111. October feeders trying to hold support around $137 the past few trading sessions with support next from $134 to $130 and resistance at $144. October lean hogs still hitting new highs, yesterday up to $78.27, with the contract expiring tomorrow. The December contract has hit resistance just above $67 with support around $61.50.
Grains flipped lower to start the week losing all the ground made last Friday from the friendly October crop report by USDA. As of last Tuesday, managed money or funds hit a record long soybean position of 286K contracts. The fund or spec buying since though as slowed allowing hedge pressure to take over and pressure the markets lower which have been way overdue for a correction. Brazil also caught some scattered rains over the weekend with forecasts improving over the next couple weeks. Due to the holiday yesterday, export inspections will be released later this morning and crop progress and conditions later this afternoon. Wheat futures held the best yesterday as world values continued to climb higher. Corn was a follower lower with the nearby December contract testing the $4 mark but still unable to break through.
Grains were fairly quiet overnight finishing steady to higher with corn fractionally mixed, soybeans 2 to 3 higher and wheat 1 to 4 higher.
USDA announced a private sale this morning of 110,000 MT or 4.3 MBU of corn sold to Mexico. There are a handful of wheat tenders pending or due this week, mostly in North Africa and the Middle East.
Weather this week again wide open for fall harvest. The 6-10 day outlook showing below normal temps in the North sweeping down into the Southern Plains with above normal moisture for the eastern half of the U.S. and below normal in the West.
December corn hit a new recent high last week at $3.99 ¼ with resistance next up around $4.04 and support at $3.86 ½ then at $3.77. November soybeans with a new contract high last Friday at $10.79 ¾. January 2017 was the last time a spot price was at $10.80. Support is at $10.25. December KC wheat into a new recent high last week at $5.52 ¾ with support at $5.26. December Chicago wheat also a new recent high last week at $6.16 ¾. Spot Chicago Wheat has not been above $6 since 2015. Support is at $5.87.
Loewen and Associates, Inc.
Pete Loewen / Matt Hines / Doug Biswell
www.loewenassociates.com matt@loewenassociates.com
866-341-6700