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.
Troy: Higher corn & wheat, lower soybeans after a 3 day weekend. Coronavirus fund positions & markets. Australia is short on wheat. Eric-Cattle & demand. Australia and export movement. Cold storage has a full freezer would give the U.S. an export opportunity.
Demand vs. Supply. Coronavirus continues. THIS WEEK’S WEATHER IN THE HARD RED WHEAT BELT REMAINING DROUGHT-STRICKEN FOR WESTERN & WEST-CENTRAL KANSAS, THE ACREAGE REPORT TODAY BEING UPDATED, & THE FRENCH WHEAT CROP CONDITIONS, WHEAT REMAINS OUR MAJOR PRICE-LEADER FOR FUNDAMENTALLY-RELATED/CURRENCY-RELATED SHORT-COVERING A bright spot is the cattle market.
Markets continue to narrow. Grains trade lower on a Thursday. Commitments are down 26% from a year ago on corn. Will we be able to move forward? Beans were able to test $9.00. Coronavirus continues to raise issues, and avian bird flu continues to be an issue. More spreading from hogs to cattle. Hogs might have seen a new low. Markets right now importing into China causing problems.
Coronavirus continues to be talked about. Markets are just not sure what to do at this time, in this phase with the Central Banks continue to print money & China in continued lock down. More time is needed to gain clarity on how long the demand side hiatus will last. Markets will continue to struggle. Any good news could make the markets take off-but any stagnate bad news will have some ill effects. New Zealand weather-could have an effect on our milk prices here in the United States. Shawn shares his thoughts on how hogs are some of the hardest hit when a pandemic starts, but they are the first to reverse when things start to turn around. Australian drought starting to see some rains-that will play in the cattle markets.
Cattle didn’t hold the open that started the day. Cash market has a chance to be better. Walmart raising beef & slaughter…not expected to drive near term change to the cattle industry. Hogs see failure once again with bird flu added to the list. Grains closed higher…should be worth something. China asking for patience with Phase One implementation. Basis continues to hold strong. Stock market takes a jump.
The Good the Bad the Ugly. Bloomberg article on China asking for more time. The Brazilian Real continues to be cheap. A lot of uncertainty hanging out there in the markets, more than what we have seen in years past. declining supply of cattle.