GENERAL COMMENTS: Sharp losses in lean hog futures stole the thunder from livestock markets Wednesday with nearby lean hog futures down over $2 per hundredweight. Despite sluggish movement in cattle trade, late-day buying pushed nearby contracts to new highs once again. Cash cattle trade remains quiet with just a few bids developing at $197 dressed basis. Activity should improve over the next couple of days with asking prices holding at current levels. According to the closing report, the national hog base is $0.26 higher ($46-$53, weighted average $51.70). Corn futures were higher in light activity with the March contract closing 2 cents higher. The Dow Jones Index closed 141 points higher with the Nasdaq up 10 points.
LIVE CATTLE: Late-day buying helped push prices off of early morning lows with increased firmness seen in front-month contracts. Futures ended the session mixed, $0.22 lower to $0.87 higher. Despite trading in a narrow range most of the day, late-day buying developed in nearby contracts. This pushed the February contract to new highs, even though overall market activity remains sluggish. Beef cut-outs: mixed, $1.07 higher (select, $206.94) to down 0.31 (choice, $211.90) with light demand and moderate offerings, 140 loads (80 loads of choice cuts, 19 loads of select cuts, 14 load of trimmings, 27 loads of coarse grinds).
THURSDAY'S CASH CATTLE CALL: Steady. Limited activity is seen through the cash cattle market, although bids are expected to redevelop similar to levels seen Wednesday. Asking prices are likely to hold at $127 to $130 live and $198 and higher dressed. Active trade may still be pushed off until Friday.
FEEDER CATTLE: Late-day support trickled into feeder cattle futures. Futures closed mixed, $0.97 lower to $0.45 higher. Pressure in nearby contracts early in the day was offset by a late-day bounce in live cattle futures. This helped to bring additional support to the complex as deferred futures moved higher at closing bell. CME cash feeder index for 1/15 is $144.19, down $0.25.
LEAN HOGS: Sharp losses were tempered a bit through the end of the session with position adjustments developing late Wednesday. Futures closed $2.10 lower to $0.05 higher. The pullback in lean hog futures that started Tuesday afternoon sparked aggressive triple-digit losses in nearby futures most of Wednesday's session. Nearby February and April futures spent most of the session trading $2 to $2.50 per cwt lower as aggressive selling flooded the market. This latest move broke through short-term support levels established over the last couple of weeks, putting more emphasis on market softness in the last half of the month. Concern over strong hog production and building pork supplies is eroding nearby contracts, and has narrowed summer premiums over the last week. Pork carcass values eroded Wednesday following weaker primal price levels in most cuts. Pork cutout values fell $0.69 per cwt, moving to $69.64 per cwt. CME cash lean index for 1/14 is $57.65, up $0.44. DTN Projected lean index for 1/15: $58.02, up $0.37.
THURSDAY'S CASH HOG CALL: Mixed. Activity early Thursday is expected to be $1 lower to 50 cents higher with most bids steady to weak. The pressure in futures trade midweek has sparked additional softness in cash markets, although packers still remain focused on aggressively buying hogs to keep plants full. Thursday plant runs are expected at 478,000 head. Saturday runs are scheduled for 150,000 head.
 |
| #completeherdhealth |
No comments:
Post a Comment