Date: November 4th, 2020
Outside markets were friendly yesterday, equities higher, energies higher and US$ lower but it still was not enough to keep livestock futures in the green. Cash feedlot has not started yet this week as feedlots may hold a little firmer with packers short bought heading into this week with such light volume purchased a week ago. The election results, when known, will be the main influence on all markets as not only the Presidency but control in Congress is up for grabs this cycle. Neither has been called as many states are still counting votes from mail in ballots and some even allowing those to arrive and be counted.
Joplin Regional Stockyards Feeder Cattle – Carthage, MO
Livestock Weighted Average Report for 11/2/2020
Total Receipts: 2,910 Last Week: 2,741 Last Year: 6,423
Compared to last week, steer and heifer calves 5.00 to 10.00 higher, yearlings 4.00 to 8.00 higher. Demand good, supply light. Several more wean-vac calves in the offering than previous sales.
Oklahoma National Stockyards Feeder Cattle – Oklahoma City, OK
Livestock Weighted Average Report for 11/2/2020
Total Receipts: 2,661 Last Week: 3,092 Last Year: 11,269
Compared to last week: Feeder steers and heifers sold 10.00-12.00 higher. Steer and heifer calves traded 10.00-15.00 higher. Demand good to very good. Quality average to attractive. A heavy ice storm and very wet conditions has hampered livestock movement.
Tulsa Livestock Auction – Tulsa, OK
Livestock Weighted Average Report for 11/2/2020
Total Receipts: 2,115 Last Week: 2,276 Last Year: 4,678
Steers and Heifers had too few receipts for a comparable, however a much higher undertone is noted. Quality good. Demand good. Slaughter cows 4.00 lower. Slaughter bulls 2.00 lower
Cattle slaughter from Tuesday estimated at 121,000 head, up 4,000 from last week and up 1,000 from last year. Hog slaughter from Tuesday estimated at 493,000 head, up 1,000 compared to last week and up 3,000 compared to a year ago.
Boxed beef cutout values Tuesday, steady to higher with 151 loads sold.
Choice Cutout__209.44 +.79
Select Cutout__195.45 +2.83
CME Feeder Index__138.03 +1.55
CME Lean Hog Index__73.48 -1.01
Pork Carcass Cutout__82.99 -1.15
IA-S.MN Wtd Avg Carcass Base__60.36 +.51
National Wtd Avg Carcass Base__60.13 +.17
December live cattle with support at $102.52, last week’s low, and resistance around $109 then $113. November feeders with support around $129 with resistance at $140 then just shy of $145. December lean hogs still holding a higher trend going back to early August with support at $64 and resistance up around $70.
Grains fared much better yesterday with all markets higher expect for MPLS wheat. Supportive news came from drier forecasts in South America and private estimates starting to trickle in ahead of next week’s USDA November crop report pointing towards another decrease in corn and soybean production. Exports may also be increased which would result in much tighter and bullish domestic ending stocks. Daily sales announcements have slowed though recently causing some traders to lean more steady to bearish than a constant bull.
Overnight grains were mixed turning higher this morning as equites and energies were also in the green. News is incredibly quiet to start the day as we all await election results. Corn finished the overnight 1 to 2 higher, soybeans 7 higher and wheat steady to 3 higher.
Another morning without any daily sales announcements. There are tenders for wheat from Syria, Pakistan, Jordan and Turkey. Japan looking for its weekly booking of Australian, Canadian and U.S. milling wheat. Syria also tendering for corn and soybean meal this week.
U.S. weather still wide open this week but early next week showing some wintry mix from the Rockies through the Plains and into the WCB. The 6-10 day outlook still showing above normal temps for the eastern half of the U.S. and below normal west with normal to above normal moisture across the majority of the country.
December corn up to a new 15-month high last week at $4.22 ¼ with support holding so far this week around $3.93 and the next down around $3.88. January soybeans hit a new contract high last week at $10.88 ½ with support around $10.35. December KC wheat still holding the higher trend going back to early August with support at $5.32 and resistance around $5.70 then the recent high from last week at $5.79 ½. December Chicago has held a higher trend since late June with support at $5.87 and the contract high hit last week at $6.38 ¼.
Loewen and Associates, Inc.
Pete Loewen / Matt Hines / Doug Biswell
www.loewenassociates.com matt@loewenassociates.com
866-341-6700