GENERAL COMMENTS:
Livestock markets remain mixed at midday with cattle futures moving higher. Feeder cattle futures are leading the complex higher with triple digit gains. All but March feeder cattle futures are holding strong triple digit gains, focusing on strong commercial buying support. Stability is starting to be seen in lean hog futures trade with mixed trade developing in a narrowly mixed trade from 15 cents lower to 15 cents higher. Corn prices are lower in light trade. May corn futures are 0.5 cent lower. Stock markets are mixed in light trade. The Dow Jones is 51 points lower while Nasdaq is up 14 points.
LIVE CATTLE:
Light to moderate buyer support has trickled into live cattle futures markets Wednesday morning despite very little movement in the cash cattle market. Commercial buyer support remains stable to firm through midweek with some end of the month buyer support likely to develop and position squaring being seen over the next couple of days. But traders seem to be finding more stability in the cattle market following the cash market and beef values through heading into the spring and summer months as they look into seasonal support and looking at tighter supplies. There could be some additional shifts coming from the Brazilian beef issues, but this may not move the market greatly as previously expected, and could become more of a trickledown effect. Cash cattle traded on the Fed Cattle Exchange Auction reporting a total of 3,963 head, with 1,898 actually sold, and 2,065 head listed as unsold. The state by state breakdown looks like this: KS 222 head at $128.75-$129.00; NE 1,125 head at $131.00-$133.00; TX 407 head, at $126.00-$129.00; CO no test; IA no test; other states no test. The weighted average was $131.17, down $2.18 from last week's weighted average of $133.35. Cash trade is quiet through the rest of the feedlot trade with bids are yet to be developed for the week. Asking prices in a few placed are seen at $132 to $133 in the South and $215 in the North. It may be Thursday or Friday before active trade will be seen in most areas.
Beef cut-outs at midday are lower, $1.25 lower (select) and down $0.50 per cwt (choice) with light movement of 71 total loads reported (28 loads of choice cuts, 28 loads of select cuts, 5 loads of trimmings, 20 loads of ground beef).
FEEDER CATTLE:
Strong upward movement has been seen through the morning in feeder cattle futures as buyers are quickly shaking off the pressure seen early in the week. March futures seem to have been put to bed for the most part with traders quickly focusing on April and May contract months with $1.30 to $1.40 per cwt gains through morning trade Wednesday as the support is redeveloping. Even though current price levels remain nearly $2 per cwt below previous resistance levels seen last week, the correction in the market could give some traders the ability and market support to quickly step back into the market through the end of the month and early April.
LEAN HOGS:
Mixed trade continues to be seen in lean hog futures with prices wandering in a narrow range on either side from 15 cents higher and lower on either side of unchanged. The ability to bring a sense of stability back into the market following strong market losses in the complex over the last several trading days has been a breath of fresh air to the entire market, but there is but at this point there is little support redeveloping in long term fundamentals as supplies are growing through the summer and fall. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.37 at $62.94 per cwt with the range from $60.50 to $63.00 on 3,451 head reported sold. Cash prices are unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.77 at $63.57 per cwt with the range from $59.00 to $64.50 on 237 head reported sold. The National Pork Plant Report reported 199 loads selling with prices falling $1.84 per cwt. Lean hog index for 3/27 is at $69.78 down $0.46 with a projected two-day index of $69.40 down $0.38.
No comments:
Post a Comment