What is going on in the cattle market & how do we survive it? Friday finished another limit down day. How do we recover? Recap of the cash markets this week. What is the packers story from their side? Hogs also see a limit down trade. Talk of China recover from COVID-19 they will need the proteins. Drop in the corn market. Energy is pulling the market lower.
Light selling in the wheat…how did that effect the corn trade? Oil & ethanol concerns. How soon will we be back to normal? Planting intentions report due out at months end. Could we see increase in unplanted acres? Corn/bean ratio and what are we seeing in the basis? Cattle market on expanded limits, one needs the other. Is Tyson’s announcement effecting the markets?
It was a good market day with positive Ag markets. Stock market wasn’t the best, Dow down. Double digit increases in soybeans & Chicago/KC wheat. Sue looks at the money leaving the stock market on rallies. Money will find safety. Ag could see a good return on their investment. Packers are offering certain bids…but a bill in the house will focus on bottom prices for cattle to be purchased. Will we see decreased numbers in next cold storage report? Thoughts on the planting intentions report while looking at some new grain movement issues out of South America.
Another day of limit down trade. What is going to happen to this cattle market…the effects on the cattle producer. Volatility to this market trade today. Why did the markets fail? CME Floor trade closed-did that play a role? Boxed beef was up $12 at noon today. Futures failing…is this getting out of hand. What is the cause? Retail demand is picking up. Friday rumors on plant workers how did that effect the market? Hog cash news is firming. Business & China is there fruit to that talk. Grains had a devastating day. Outside market influence in the trade. Equities creating negativity.
Livestock limit down as it was on expanded limit. Not a lot of proteins moving with cancellations because of Coronavirus. How does the cattle & pork producer try to focus & find the positive? Basis continues for the corn steady. Feed demand will have added pressure to the grains-almost a domino effect. How will the slow down and fuel issues effect the ethanol plants. March planting intentions report outlook.
Turn around Tuesday. Will it push into tomorrow? Dow & dollar moved back higher. Crude is also coming back Nothing exciting in the WASDE report. More rains expected in South America. Ethanol demand heading into summer & Coronavirus concerns. Livestock market sees turnaround as well. Hogs may have made a low on the June contract.
Another down day…grains, livestock & stocks. A lot of fear factor being built in. Crude oil continues to fall…explain in relation to corn. March 10th USDA WASDE Report. Soft export market continues. Chicago wheat the only market to see some positive trade numbers. Feeder cattle lock down & struggle …following the equities as they follow what happens in the Coronavirus news. Seen some solid demand in the hogs…but there is a lot of supply out there.
Thoughts on the cattle market. Geo Political & Cornavirus keeping a hold of the markets. How the politics and global work together. Feeder cattle stabilize-could we have seen a stronger rally. Liking the hogs. Grains stabilize rally could be coming. Argentina raised their export taxes on soybeans. Combine of corn still going on. Stock market. There is an end to the chunk of news…but not soon enough
Another low day in the markets, is the aid payment talk trigger some worries in the market place? Waiting for trade deals to kick. Bean funds are short going into the weekend. Outlook forum brought no surprises. Now what? Ethanol margins flat, weather market heading into spring planting. Dollar vs. real. Livestock…hogs continue on a roller coaster-a lot of production out there, but no place to go globally. Long term effects on the hog markets.
Hormel Foods is getting rid of ractopamine, a growth drug banned by China, from its hog supply. Hormel is joining rival companies like Tyson Foods and JBS in looking to make more meat sales to China, which is in the middle of wrestling with a large shortage of pork.
Hormel isn’t going to accept hogs that have been fed or otherwise exposed to ractopamine after April first. Tyson Foods and JBS USA took that step last year. The companies’ moves ramped up the competition for the increased pork demand from China, where the outbreak of African Swine Fever has decimated their herds.
In a statement announcing the move, Hormel says, “We have been actively monitoring the changing global market dynamics for several years and believe this decision will further position us to meet growing international demand.” Ractopamine is used in some countries to raise leaner pigs, but China doesn’t allow its use or tolerate residues in its imported meats. The European Union also bans ractopamine.