Date: February 3rd, 2021
Livestock futures held mostly triple digit gains reversing from Monday’s losses. Lower grains helping to support feeders. Cash feedlot trade quiet so far this week. Higher trade should be possible again this week as packers procured 86% of last week’s needs for two-week delivery. If they were flush with inventory more volume would have been for the 15-30 day delivery.
Joplin Regional Stockyards Feeder Cattle – Carthage, MO
Livestock Weighted Average Report for 2/1/2021
Total Receipts: 4,016 Last Week: 5,928 Last Year: 7,512
Compared to last week, steers under 700 lbs. traded 1.00-7.00 higher, over 700 lbs. traded steady. Heifers under 600 lbs. traded 3.00-7.00 higher. Over 600 lbs. traded steady. Very muddy conditions caused the supply to be light. Demand was good.
Oklahoma National Stockyards Feeder Cattle – Oklahoma City, OK
Livestock Weighted Average Report for 2/1/2021
Total Receipts: 10,758 Last Week: 10,245 Last Year: 6,492
Compared to last week: Feeder steers 1.00-3.00 lower. Feeder heifers 1.00-2.00 lower. Demand very uneven for feeder cattle causing large spreads in some of the price spreads Steer and heifer calves 2.00-4.00 higher. Demand moderate to good for calves. Quality plain thru attractive. Rain occurred across most of the state over the weekend.
Winter Livestock (Tuesday) – La Junta, CO
Livestock Weighted Average Report for 2/2/2021
Total Receipts: 2,692 Last Week: 2,021 Last Year: 1,411
Compared with last Tuesday: Feeder steers under 400 lbs steady, 400 to 550 lbs 3.00 to 4.00 higher, 550 to 700 lbs steady to 2.00 higher, over 700 lbs 2.00 to 3.00 lower. Feeder heifers under 500 lbs steady, 500 to 600 lbs steady to 3.00 higher, over 600 lbs 1.00 to 2.00 lower. Slaughter cows 3.00 to 4.00 higher. Slaughter bulls 2.00 higher. Demand moderate to good.
Cattle slaughter from Tuesday estimated at 118,000 head, up 1,000 from last week but down 3,000 from last year. Hog slaughter from Tuesday estimated at 495,000 head, up 46,000 compared to a week ago and up 2,000 compared to a year ago.
Boxed beef cutout values on Tuesday higher on Choice but lower on Select on light demand with only 93 loads sold.
Choice Cutout__236.76 +1.08
Select Cutout__225.04 -.55
CME Feeder Cattle Index__136.40 -.03
CME Lean Hog Index__68.87 +.60
Pork Carcass Cutout__81.10 -1.56
IA-S.MN Wtd Avg Carcass Base__61.89
National Wtd Avg Carcass Base__58.44
February live cattle are still holding a higher trend with nearby support levels around $114 and resistance up at last week’s high at $117.62. March feeders with support at $136.50 and resistance at $140 then $141.85. February lean hogs holding the higher trend with support at $69 and resistance at $72.
Grains stayed in the red yesterday as South America receives some beneficial rains. There were also some rumors that China may be cancelling Brazilian soybean purchases for March. This could be due to more profit from selling then crushing, but any slowing down of Chinese purchasing will concern the markets. Wheat stayed in the red even though world values increased with Egypt buying 8 cargoes of wheat split between France, Russia, Romania and Ukraine. This was their first purchase in almost 2 months.
Overnight, grains continued to fade lower with nearby soybeans able to move back in the green. Soybeans finished the overnight 1 lower to 4 higher, corn 1 to 2 lower and wheat 3 to 8 lower.
News overnight was light. There are a few wheat and corn tenders remaining this week. No daily sales announced by USDA this morning but rumors still that China has purchased up to another 2 MMT of U.S. corn on top of the nearly 6 MMT announced last week. South Korea purchased 29,000 MT or 1.1 MBU of wheat from Australia. Germany reported an outbreak of H5N8 culling 14,000 turkey. Domestic basis levels have started to frim or strengthen in many areas as futures are off their tops and producer selling has slowed down recently.
Snow expected across the area and into the Midwest later this week followed by much below normal temps from the Northern Plains down into the Southeast next week. The 6-10 day outlook showing below normal temps for all except in the Southwest with above normal moisture in the Northern Plains and Southeast and below normal across the Southwest and Corn Belt.
March corn hitting a new contract high on Monday at $5.55 ¾ with nearby support at $5.29. March soybeans contract high from mid-January at $14.36 ½, hasn’t been back above $14 since the 19th, with nearby support around $13.34. March KC wheat still holding the long-term higher trend with support at $6.05 and resistance at $6.48. March Chicago wheat with support at $6.24 and resistance at $6.72. March soybean meal with support next at $420 and resistance at $450.
Loewen and Associates, Inc.
Pete Loewen / Matt Hines / Doug Biswell
www.loewenassociates.com matt@loewenassociates.com
866-341-6700