Cattle buying interest should continue to
improve Thursday. Opening cash bids should be around $128 to $130 on the
South and $212 to $213 in the North. Yet as bullish-minded feedlot
managers dig in with asking prices around $134 to $135 in the South and
$215 to $218 in the North, significant trade volume could be delayed
until Friday. Expect live and feeder futures to open on a firm basis,
boosted further by spillover buying, technically-promising charts and
ideas of further cash progress.
It would appear that the country offering of
market ready hogs is getting a bit snugger (though slaughter numbers
clearly remain quite generous). We may still be several weeks away from a
more significant drop (say, under 2.5 million by mid to late May).
Saturday's kill is currently to be around 105,000 head. While such an
effort will be half the size of last week, the weekly slaughter should
still total well over 2.3 million. Lean futures seem geared to open
moderately lower, pressured by follow-through selling and uncertain pork
demand.
| BULL SIDE | BEAR SIDE | ||
| 1) | Completely erasing Monday's post-report sell-off, cattle futures blasted back into the passing lane at midweek with bulls setting new contract highs in nearly every corner. | 1) | Total live cattle open interest as of Tuesday was record large and 5,400 above a week ago, elevating longer-term market vulnerability when the cash market falters. In addition, a historically large index roll looms in early May. |
| 2) |
Out-front boxed beef sales (i.e.,
with delivery of 22 days or more) surged to 1,480 loads last week, the
most aggressive round of advanced business seen since late December
2010.
|
2) | For the week ending April 22, U.S. hatcheries set 222 million eggs in incubators, up 2% from a year ago. At the same time, chicks placed in the United States totaled 182 million chicks, up 2% from 2016. |
| 3) | While the jury still remains out, the cash hog trade seems to be rolling steadily higher. Note that the national negotiated base gained nearly a buck on Wednesday. | 3) | Lacking any follow-through from Tuesday's rally, lean hog futures quickly surrendered a good deal of price territory Wednesday, reinforcing multiple levels of overhead chart resistance. |
| 4) | Though bellies may have several more weeks of potential softness, the bacon market should soon shift into a strong uptrend through July, especially given such low levels in cold storage. | 4) | For the week ending April 22, Iowa barrows and gilts averaged 284.9 pounds, 1.1 lbs bigger than the prior week and .9 lbs heavier than 2016. |
OTHER MARKET SENSITIVE NEWS
CATTLE:(PRNewswire) -- Greenwood Village, CO:
Perky Jerky, a leading next generation premium meat snacks brand, is
launching a new line of 100 percent grass-fed beef sticks in the same
bold flavors that make the brand's jerky offerings a favorite amongst
athletes, outdoor lifestyle enthusiasts and millennials alike. As the
meat snack category continues to grow in popularity, Perky Jerky has
entered the market with a unique product offering. Filling the void for
all-natural meat stick products, Perky Jerky now offers a premium option
for consumers that also successfully delivers on taste.
The Perky Jerky stick line is the perfect
on-the-go snack for millennials -- an important demographic that
currently serves as the national driver behind snack sales. Studies have
shown that 76 percent of meat snack purchases are made by millennials,
who prefer to eat small meals or snacks throughout the day. As
millennial consumers are drawn to snacks containing simple, clean
ingredients, Perky Jerky's products align perfectly as a snack option
that doesn't just taste better, but is actually better for you. Made
from 100 percent grass-fed beef, Perky Jerky's sticks are 59 percent
lower in fat and 36 percent lower in sodium than other options on the
market.
"Consumers look for convenient snacks that will
fuel their bodies throughout the day without compromising their health,"
said Brian Levin, CEO and Founder of Perky Jerky. "Our new 100 percent
grass-fed beef stick product line is all about bringing consumers a
product that they can feel confident about eating and also feel good
about giving their children to eat. We're excited to offer beef sticks
in our signature jerky flavors with clean ingredient lists, providing
customers with a new and convenient meat stick in a class of its own.
Since 2009, Levin has positioned Perky Jerky as
an upscale product that has a taste and texture that's delightfully
unexpected. With a 36 percent increase in consumption of the brand's
traditional beef and turkey jerky options over the past year, the beef
sticks launch is expected to draw incremental consumers to this segment
as a healthier option for consumers on the go. With 94 percent of
Americans choosing to snack at least once a day and 33 percent reaching
for healthier snacks, Perky Jerky has gained a loyal fan base because of
the practicality of protein-packed snacks.
"We saw an opportunity to create grass-fed beef
sticks that can pack in bold flavor and still deliver on healthful
attributes," said Levin. "We're helping evolve the stick form so they're
perceived in a more positive light."
Perky Jerky's 100-percent grass-fed beef sticks
are available in the following flavors: More than Just Original, Tasty
Teriyaki, Brewmaster's Pale Ale and Jammin' Jamaican. The sticks are
available for purchase now at perkyjerky.com and Amazon, with
distribution at additional retailers starting this month for $1.99 --
$2.29 per stick.
HOGS: (thepigsite.com) -- Calling him "very good
for America's farmers and ranchers," the National Pork Producers
Council congratulated former Georgia Governor George "Sonny" Perdue on
his confirmation by the US Senate as the new Secretary of Agriculture.
"Sonny Perdue is the kind of leader the pork
industry, and the entire livestock industry, needs at the US Department
of Agriculture," said NPPC President Ken Maschhoff, a pork producer from
Carlyle, Illinois. "He'll be very good for America's farmers and
ranchers." At his 23 March confirmation hearing before the Senate
Committee on Agriculture, Nutrition and Forestry, Mr Perdue pledged to
be a "tenacious" advocate for agriculture.
"Agriculture needs a strong advocate," he told
the committee. He also vowed to work with the administration "to
establish a strong trade policy that benefits agriculture" and to
identify unintended consequences of regulations and address them "before
they create challenges for agriculture."
A veterinarian and agri-businessman who grew up
on a dairy and row crop farm in central Georgia, Mr Perdue served as the
state's governor from 2003 to 2011. Prior to that, he was in the
Georgia Senate for 10 years.
"Secretary Perdue knows agriculture; I think
he'll do well as Agriculture Secretary," Mr Maschhoff said. "Also, he
takes over at a critical time for agriculture, with work starting on a
new farm bill and possibly on free trade agreements that would open new
markets to US pork and other agricultural products.
"NPPC and America's pork producers look forward to working with Secretary Perdue."
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