Tag Archives: Mike Zuzolo

Summary

At the settlement grains are mixed. Corn and wheat lower. Soybeans higher. The soybean meal market started to make a midday rally on news that Argentina is raising the export taxes on soybeans and soy products 3%. Analysts though point out that whatever Argentina falls short of in supply Brazil will be in the wings with their large harvest just starting to finish up. John Payne, Daniels Ag Marketing, believes the grain markets may be started to set up a near by low given the recent strength in the soybeans. You can listen to his full comments below. Looking at historical charts from 1990-2019 2001 was the only year when the December corn contract put it’s high in January. So there is hope that we will see another rally in 2020.

Currencies are still not helping US commodities as the US dollar starts to flirt with the $100. The US Dollar Index has not been in this territory since April 2017.

USDA announced just prior to the open South Korea is in for 12,300 MT of option origin corn.

Ukraine’s grains exports are up 23.1% for the current marketing year.

According to EIA data, ethanol production expanded by 1.3%, or 15,000 barrels per day (b/d), to 1.054 million b/d last week.
Ethanol stocks tightened 0.3% to 24.7 million barrels.
Imports of ethanol arriving into the West Coast were 35,000 b/d, or 10.29 million gallons for last week. This is the first time in six weeks that imports were logged.

Livestock traded mostly positive through the day. Live cattle futures were hit when the equities started to dip. There is some correlation between equity prices and beef prices as disposable income for beef is more available when equity markets are high. Cutouts are trying to stabilize. Mike Zuzolo, Global Commodity Analytics, believes the cash cattle market may be trying to establish a low to build off of, but it hesitant to put that low building into the futures just yet.

Still just a few scattered bids on the table in the North this afternoon, but the majority of cattle country remains quiet. Some sources are saying that other than some cleanup, business just may be essentially done for the week, especially in the South. Having said that, asking prices for cattle left on show lists are around $117 plus in the South, and $187 plus in the North. Tuesday saw light to moderate trade in most areas. Northern dressed trade ranged from $185 to $187, mostly $187, roughly $3 lower than last week’s weighted average basis Nebraska. Southern live deals were at $115, generally $5 lower than the prior week’s weighted averages.

Midday Carcass Value Wednesday

Beef

Choice dn 1.15 206.32

Select dn 0.88 199.02

C/S Spread 7.30

Loads 103

Pork

Carcass dn 0.35 65.97

Bellies dn 1.62 71.19

Loads 400

Daily Slaughter Wednesday

Cattle

121,000 hd today 121,000 hd wk ago 119,285 hd yr ago

Hogs

496,000 hd today 496,000 hd wk ago 475,733 hd yr ago

Grains Settlements

  • Corn  dn dn 1/2 -2
  • Soybeans up 1/2 – 3 3/4
  • Chicago Wht dn 1 3/4 – up 1 1/4
  • Kansas City Wht dn  1 1/4 – 2 3/4

Livestock Settlements

  • Live Cattle dn 0.95 up 0.45
  • Feeder Cattle dn 0.12 up 1.85
  • Lean Hogs up 0.80 – 0.80
  • Class III Milk dn 0.02- 0.23

 Pre-opening Market Broker  Commentary

Mark Gold, Top Third Ag Marketing, discusses overnight grains and what the trade may see today.


Jerry Stowell, Country Futures,  looks at what may impact the livestock futures today.

Mike Zuzolo, Global Commodity Analytics, takes a look at the midday trade.

John Payne, Daniels Ag Marketing, looks at the grain settlements. Payne believes the grains could be setting in a nearby low this week.

Jack Fenske, York Commodities, looks at the closing market numbers.

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.

 

Tomorrow’s signing day with China.  A lot of stories about what be included.  WTO guidelines.  Chinese imports.  Bird flu update for China.  Turkey’s in Northern Hungary as well.  We continue to see tight ethanol supplies.  Weather updates for South America.  Corn harvest 2% done in Brazil. Global wheat crop.  Livestock market & what China’s hog market looks like.  Some short term technical on cattle.