Date: June 1st, 2021
Livestock futures ended last week mixed with cattle futures under pressure and lower for the week while lean hogs finished the week higher. Cash feedlot trade was done by midweek with trade in the South at $116 to $120, mostly $119 to $120, steady to $1 higher than the week previous Northern dressed trade ranged from $187 to $192, mostly $191, generally steady with week’s previous weighted average basis Nebraska.
Oklahoma Weekly Cattle Auction Summary
Livestock Weighted Average Report for 5/23/2021 – 5/29/2021
Current Week: 31,141 Last Report: 22,325 Last Year: 14,889
Compared to last week: Feeder steers steady to 3.00 higher. Feeder heifers sold 2.00-5.00 higher. Demand very good for feeder cattle as several large strings of cattle were moving off of graze-out wheat. Steer and heifer calves lightly tested in most areas, however few sales were 1.00-4.00 higher. Demand also very good for calves.
For the week, Friday May 21st through Friday May 28th, June Live Cattle -$1.80, August -$2.32, August Feeder Cattle -$2.35, September -$1.37, June Lean Hogs +$3.02, July +$2.80. Boxed Beef, Choice +$5.80 @ $330.97, Select -$1.41 @ $300.90, Pork Carcass Cutout +$5.73 @ $126.59.
Cattle slaughter from Friday estimated at 117,000 head and Saturday at 34,000. For the week, 629,000 head, down 40,000 from the week previous but up 102,000 from last year. Beef production last week at 518 million pounds compared to 550.7 the week previous and 434.5 million last year. Year to date beef production +7.9% compared to last year with slaughter +6.8%. Hog slaughter from Friday estimated at 425,000 head and Saturday at 22,000. For the week, 2,378,000 head, down 15,000 compared to the week previous but up 397,000 compared to a year ago. Year to date pork production +3.5% compared to a year ago with slaughter +2.8%.
Boxed beef cutout values Friday higher on Choice and sharply lower on Select on light to moderate demand with 80 loads sold.
Choice Cutout__330.97 +.99
Select Cutout__300.90 -3.20
CME Feeder Cattle Index__136.12 -.45
Lean Hog Index__113.44 +.36
Pork Carcass Cutout__126.59 +.22
IA/MN Wtd Avg Carcass Base__111.97
National Wtd Avg Carcass Base__105.32 -1.89
June live cattle dipping below nearby support on Friday with the next down at $115.70 and resistance at $117.80 then at $118.50. August feeders taking out the nearly month long higher trend with support next at $150 and resistance around $153. June lean hogs hitting a new contract high at $117.60 last Friday with support around $113, and the next upside target at $118.82, the spot high from August 2014.
The biggest news over the weekend came from JBS yesterday as they were hit by a cyber-attack causing multiple operations to shutdown including all of its Australian operations. Some servers affecting Australian and North American IT systems were hit which JBS as stated will take some time to resolve and may delay certain transactions with both customers and supplies. Today is also the first day of expanded limits on cattle futures with live cattle limits now at $5 per cwt and feeders at $6.25 per cwt.
Grains were also mixed on Friday, mostly lower though as soybeans and MPLS wheat the only to hold week over week gains. Thursday was the big turnaround higher day but little follow through as we wrapped up the month that saw huge losses after new contract highs early in May. U.S. weather has been mostly non-threatening but areas in the Northern Plains and Northern Midwest still needing some rain. Brazil second crop corn still seen as deteriorating and limited moisture in the nearby forecasts. Weather and China will continue to move the markets until updated acreage data comes from USDA at the end of June.
For the week, Friday May 21st through Friday May 28th, July Corn -$.02 ¾, December -$.01, July Soybeans +$.04 ¼, November +$.12 ¼, July KC Wheat -$.10 ¾, September -$.10 ½, July Chicago Wheat -$.10 ¾, September -$.09 ¾, July MPLS Wheat +$.27, September +$.27 ¾, July Soybean Meal -$3.40/T, December -$.10/T.
Overnight grains higher as MPLS wheat leading the charge and gapping higher overnight. Freezing temps in the upper Midwest over the weekend along with hot and dry forecasts for the Northern Plains and Northern Corn Belt adding some weather premium to the markets to start this week. Corn finished the overnight 19 to 25 higher, soybeans 24 to 26 higher and wheat 21 higher for KC and Chicago with MPLS wheat 35 to 41 higher.
No export sales announced today. USDA will release weekly export inspections later this morning and this afternoon April soy crush data along with crop progress and conditions. This will be the first national corn crop condition reported.
The biggest weather threats this week again the hot and dry in the North and heavy rains in the Gulf stretching up in the TN River Valley. The 6-10 day outlook showing above normal temps from the Northern Plains to the East Coast and below normal on the West Coast and in the Gulf with above normal moisture in the Southeast and below normal in the Northern Plains and upper Midwest to New England.
July corn making a new recent low last week at $6.02 ¾ to a new recent high overnight at $6.76 ½ with resistance at $6.87. December corn with a low last week at $5.00 ¼ and resistance at $5.75. July soybeans down to $14.89 ¼ last week with resistance next around $15.60. November soybeans dipping down to $13.25 ¾ last week with resistance at $14.20. July KC wheat with support at $5.84 and resistance around $6.50. July Chicago wheat with support around $6.40 and resistance at $7.00. July MPLS wheat the leader higher, up $1 since last Wednesday low at $6.68 ¾ with the contract high at $8.07 ¼ from May 7th. July soybean meal hitting $378.30 last week, a new 6-month low with support next at $375 and resistance at $413.
Loewen and Associates, Inc.
Pete Loewen / Matt Hines / Doug Biswell
www.loewenassociates.com matt@loewenassociates.com
866-341-6700