Drew Haynen, Van Zee Commodities LLC
Cattle Market Report:
Goodmorning and welcome to our cattle market report
The cattle market made a really nice run last week with the cash market trading at multi week highs and the beef market moving higher.
The packers came out swinging with cash trading in the north at $142/cwt and in the south at $138/cwt. Packers are looking for quality high grading cattle right now and are willing to pay for them.
Beef demand still seems relatively strong with the export market still pretty good, even with the very high dollar compared to almost all other currencies.
With the cow kill so high, and many of the feeder cattle being placed early this year, feeder cattle could turn strong by the end of this year and into next year. The one thing that keeps hurting this market, like everyone knows, is the strong corn market and costly inputs. If corn would ever move lower this would give a big boost to the feeders.
Thanks for joining us and check back next week for another cattle market report
Grain Market Report:
The corn market has been stuck in a range yet trading in December from about $6.85 to $7.50. When the tensions in Ukraine seem to relax a little bit the corn market moves lower, but every time that Russia attacks some sort of grain facility the grain markets rally. I really don’t see Russia letting a bunch of grain out of Ukraine in the near future, but there is optimism that sometime this fall they will let some move out. Ukraine also has been saying that they have a good crop being grown and as much as 85% has been planted. The world crop is definitely bigger than many analysts expected after the last WASDA report. If the USA can have a good growing season, we should have enough grain to make it through next year, I hope with prices closer to $6 than $8. The demand from feed consumption is definitely weaker this year for grain but export demand, and especially ethanol demand, is on fire this year. Many ethanol plants are bidding close to 60 over for corn in NW Iowa where usually this is closer to even basis. I have heard that basis is also very strong by ports and rivers where the grain can be exported. This worries me quite a bit that corn will stay strong through this summer for sure.
If you have any more questions or concerns or just want to discuss the specifics or potential risks and reward for different futures strategies, please call Drew Heynen at 712-722-3888.
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Sheep and hay data compiled by Ross Bronson, Ag Risk Consultant, Redd Summit Advisors
Sheep Market Report:
Sheep markets were down $5-15 this week after a strong showing last week. The USDA estimated domestic lamb and mutton meat production for the week ending June 4th totaled 2.1 million pounds on a 30,000 head slaughter week, up from 2.38 million pounds and 35,000 head last week. Imported lamb and mutton meat for the week ending May 28th totaled approximately 6.33 million pounds which equates to 266 percent of the domestic production for the same period.
Hay Market Report:
Not surprisingly, demand remains strong for hay. As more hay is harvested, there is some concern that barns are not being filled and stacks aren’t appearing in fields. First cutting is well under way in the Great Basin region. Most growers, it seems, were able to time harvest around recent rains. A lot of new crops are coming in low on yields. The hope is that those yields can be made up the rest of the summer, though that is unlikely. The Pacific Northwest is struggling a bit to manage around the storms rolling through and the Desert Southwest will start dealing with hot weather soon.