The cash cattle trade was generally quiet through Wednesday with a few dressed sales reported in parts of the North (i.e., $212-$213, $4-$5 higher than last week's weighted average basis Nebraska). Buying interest certainly seemed alive and well, just not good enough to significantly gel with higher asking prices. According to the closing report, the national hog base is .82 higher ($49.00-56.00, weighted average $54.46). Corn quickly surrendered much of Tuesday's rally, closing 5-6 cents lower thanks to long liquidation and profit-taking. The stock market closed lower with the Dow off 21 points and the Nasdaq near unchanged.
LIVE CATTLE
Live contracts bolted sharply higher as bullish cash expectations moved back toward the center of the trade's radar. Most issues settled 200 to 272 higher with June through December setting new contract highs. Beef cut-outs: mixed, up .17 (choice, $219.18) to off .55 (select, $205.72) with light to moderate demand and offerings (63 loads of choice cuts, 34 loads of select cuts, 11 loads of trimmings, 27 loads of coarse grinds).
THURSDAY'S CASH CATTLE CALL:
Steady to $2 higher. Look for cattle buying activity to develop on Thursday and/or Friday as short-bought packer move to cover near-term slaughter needs.
FEEDER CATTLE
Feeder bulls roared back to town, spiking futures as much as 112 to 450 points higher. Feedlot profits continue to stoke stronger and stronger commercial buying interest. By the time the bullish dust had settled, all but spot May had set new contract highs. CME cash feeder index: 04/25: 139.44, up .13.
LEAN HOGS
Lean futures failed to find any follow-through buying energy Wednesday, even as bulls hoped to build on Tuesday's promising rally. At the end of the trading session, contracts closed mostly 32 to 110 lower. Summer contracts lost ground to both spot May and the far deferreds. Besides profit-taking and long liquidation, lean hogs seemed to be pressured by a reassertion of cattle/hog spreading interest. Carcass value closed moderately lower, pressured by fresh cuts and hams. Pork cut-out: $73.47, off .35. CME cash lean index for 04/24: 60.16, off .33 (DTN Projected lean index for 04/25: 59.93, off .23).
THURSDAY'S CASH HOG CALL
Steady to $1 higher. Hog buyers should start work in the morning with steady/firm bids.
No comments:
Post a Comment