Closing Market Update- 3/19/21- Corn and Soybeans Rally Sharply Higher on Friday


May corn closed up 11 1/4 cents and May soybeans were up 24 cents, both nearly erasing Thursday’s big losses after a fourth consecutive corn sale was reported to China. July contracts of winter wheat ended slightly lower with more rain in the forecast for early next week. Corn prices remained higher, thanks to China’s fourth U.S. purchase this week. Soybeans found support from tight supplies and got extra help from May soybean meal trading up almost $10 per short ton. U.S. and Chinese officials are meeting a second day in Anchorage, Alaska, but no changes in trade policy are expected.

It was a tough day for the cattle contracts to gain any support and to attempt to trade higher, but the lean hog contracts took the day confidently and traded mildly higher into the afternoon before faltering slightly at the close. Bids of $182 have been offered in Nebraska, but any more trade has yet to really transpire. Read today’s Cattle on Feed report analysis from DTN below.

Farm and Ranch Director Jesse Allen has the closing update:

OMAHA (DTN) — Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 12.0 million head on March 1, 2021. The inventory was 2% above March 1, 2020. This is the second-highest March 1 inventory since the series began in 1996, USDA NASS reported on Friday.

Placements in feedlots during February totaled 1.68 million head, 2% below 2020. Net placements were 1.63 million head. During February, placements of cattle and calves weighing less than 600 pounds were 335,000 head, 600-699 pounds were 295,000 head, 700-799 pounds were 465,000 head, 800-899 pounds were 409,000 head, 900-999 pounds were 125,000 head, and 1,000 pounds and greater were 55,000 head.

Marketings of fed cattle during February totaled 1.73 million head, 2% below 2020.

Other disappearance totaled 58,000 head during February, unchanged from 2020.