Date: May 30th, 2023
Sharply higher corn prices to end last week pressured feeders on Friday yet live cattle continued to hold gains. New contract highs hit yet again for live cattle with cash trade higher. Negotiated cash fed cattle trade wrapped up midweek with trade in the South from $170 to $174, mostly $171 to $172, $1 to $2 higher. Trade in the North reported at $180 to $183 live, $2 to $4 higher, and dressed trade at $285, $5 higher than the previous week.
Weekly closes for livestock futures and meats…June Live Cattle +$1.62, August +$.87, August Feeders -$1.17, September -$.85, June Lean Hogs -$6.95, July -$8.35. Choice Boxed Beef +$2.83 at $303.93.
Oklahoma Weekly Cattle Auction Summary
Livestock Weighted Average Report for 5/21/2023 – 5/27/2023
Receipts: Current Week 29,642 Last Week 19,974 Last Year 25,094
Compared to last week: Feeder steers 3.00-8.00 higher. Feeder heifers 2.00-5.00 higher. Steer and heifer calves sold 6.00-12.00 higher. Demand extremely good for all classes. Good rains across the Texas Panhandle and in Western Oklahoma this past week is definitely taming the drought conditions in those areas. Up to 8 inches fell in some areas. Some areas seeing green pastures that haven’t seen this in some time. Slaughter cows sold 2.00-4.00 higher. Slaughter bulls 1.00-2.00 higher.
Cattle slaughter last week estimated at 625,000 head, down 17,000 from the week previous and down 16,000 from last year. Hog slaughter last week estimated at 2,371,000 head, down 26,000 compared to the week previous but up 25,000 compared to a year ago.
Boxed beef cutout values on Friday higher on moderate demand with 89 loads sold.
Choice Cutout__303.93 +3.99
Select Cutout__284.92 +.38
CME Feeder Cattle Index__209.56 +1.42
CME Lean Hog Index__80.48 -.32
Pork Carcass Cutout __82.20 +1.01
June live cattle hit a new contract high on Friday at $168.40. There’s still a gap up to $173.30 on the weekly continuous chart from when the April contract expired and its contract high was at $177.70. August feeders hit a new contract high last Monday at $235.72 with support at $230. June lean hogs down to a new contract low on Friday at $75.45 with support next at $71.50 and resistance at $82.25.
Short covering heading into the holiday weekend and some concern over dryness in the Midwest forecasts support new crop corn and beans on Friday. This rally to end the week also allowed for week over week gains. Some scattered rains possible in the Plains this week but most of the Corn Belt remains dry. The 6-10 day forecasts still calling for above normal temps and below normal moisture as well.
Weekly closes in the grains… July Corn +$.49 ½, December +$.34 ¾, July Soybeans +$.30, November +$.14, July KC Wheat -$.05, September -$.01 ¼, July Chicago Wheat +$.11, September +$.12 ½, July MPLS Wheat +$.14, September +$.12 ¼, July Soybean Meal -$6.9/T, December -$1.5/T.
Grains opened last night steady but it didn’t take too long to start fading and never looked back as soybeans and wheat were the leaders lower. Outside markets showing equities steady to higher, US$ lower and energies lower with crude down over $2/barrel. Corn finished the overnight 1 to 6 lower, soybeans 16 to 20 lower, and wheat 10 to 20 lower.
Russia continues to bark about not extending the safe shipping corridor for Ukraine exports through the Black Sea unless sanctions are lifted. Russian wheat prices continue to decline keeping pressure on world and U.S. values. China has received heavy rains the past few days flooding wheat fields just ahead of harvest. This could impact quality and quantity on the world’s largest wheat producer. Brazil’s second crop corn still looking very good with good weather forecasted.
This week’s U.S. weather forecast still calling for heavy rains from western KS down through west TX and scattered rains across the rest of the Southern Plains and up into the Northern Plains. The 6-10 day outlook showing above normal temps from the PNW across the Northern Border States and down into the Corn Belt with below normal temps in the Southwest and East Coast. Above normal moisture over the western half of the country as below normal rainfall still forecasted across the Corn Belt. No severely hot temps yet and the extended forecasts now showing some relief two weeks out.
July corn broke through resistance last week with the next at $6.10 and support at $5.84. December is now testing resistance at $5.37 with the next at $5.50 and support down at $5.13 ½. July soybeans holding support with last week’s low at $13.04 ¾ and nearby resistance at $13.48. The November contract hit a new recent low last week at $11.63 ¼ with resistance at $12.03 ½. July KC wheat a new recent low overnight at $7.98 ½ with support at $7.36 and resistance at $9.18 ¾. July Chicago wheat still holding the long-term lower trend with a new recent low last week at $5.94 ¼ and resistance at $6.64. July MPLS wheat also still showing a long term lower trend with support at $7.93 and resistance at $8.37 ½. July soybean meal trending lower the past few months with support at $390 and resistance at $430.
Loewen and Associates, Inc.
Pete Loewen / Matt Hines / Doug Biswell / Tyson Loewen
www.loewenassociates.com matt@loewenassociates.com
785-537-3336
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