GENERAL
COMMENTS: The April lean hog futures contract surged higher Wednesday on
continued support in cash hogs. The rest of the livestock complex
remained generally weak on outside market weakness. Cash cattle trade
quickly developed Wednesday morning with Southern deals struck at $126
per cwt live. With prices falling $2 per cwt lower from week-ago levels,
additional dressed trade started to develop early afternoon Wednesday
at $206 to $207. Most trade was seen at $206, which is $2 per cwt lower
than last week. Although additional trade may continue to develop
through the rest of the week, the tone of the market is already set,
likely inking prices for the week at current levels. The National Daily
Direct afternoon hog report was $1.87 higher ($64-$80, weighted average
$74.92) on 10,605 head sold. Corn futures were lower in light activity
with the May down 3 1/2 cents per bushel. The Dow Jones Index was 32
points lower with the Nasdaq down 48 points.
LIVE CATTLE: Live cattle futures settled $0.20
to $1.12 lower. Sharp losses quickly developed across all live cattle
trade Wednesday with the June contract leading the complex lower. The
summer contracts posted the most significant losses, nearing $1 per cwt.
The combination of widespread outside market losses and the spot April
futures contract breaking through short-term support levels sparked
technical pressure through all nearby contracts. This could lead to
increased end-of-the-week liquidation through nearby futures trade. Beef
cut-outs: mixed, up $1.54 (select, $220.53) to down $0.52 (choice,
$228.99) with light demand and moderate to heavy offerings of 157 loads
(99 loads of choice cuts, 12 loads of select cuts, 17 load of trimmings,
30 loads of coarse grinds).
THURSDAY'S CASH CATTLE CALL: $2 lower. The
courtship of bids and asking prices was extremely short this week with
light-to-moderate trade developing quickly Wednesday. Follow-through
interest is expected to be seen early Thursday, although the tone of the
market is likely to be set following midweek trade.
FEEDER CATTLE: Feeder cattle futures ended mixed
($0.62 lower to $0.10 higher) as traders focused on outside market
pressure. Feeder cattle is the one livestock market that continues to
have mixed reactions to outside market pressure, including losses in
nearly all commodity markets, energy trade and the stock market. Nearby
futures followed the rest of the complex lower as traders continue to
remain concerned about the ability to spark follow-through buying as
losses developed in live cattle trade. But limited buying trickled into
deferred summer and fall feeder cattle futures as traders took into
account lower grain prices. This lowers overall production costs for
feeding cattle, allowing for increased margin available for feeder
cattle prices. CME cash feeder index for 3/26 is $142.15 up $0.11.
LEAN HOGS: Early pressure eased as buyers
returned to the lean hogs complex, leading to a mixed close ($0.52 lower
to $1.60 higher). Strong gains quickly moved into nearby lean hog trade
with the April contract leading the complex higher following support in
cash trade. The rest of the complex was less convinced, as triple-digit
losses held for most of the session as profit-taking developed. Even
though the long-term focus is on expanded domestic pork demand and
growing exports, the short-term support in cash trade is leading
spot-month contracts higher. Mixed primal values limited pork price
gains. The firmness continues, but is much less aggressive. Pork cutout
values were up $0.56 per cwt, moving to $81.63 per cwt on 320 loads. CME
cash lean index for 3/25 is $67.13, up $2.16. DTN Projected lean index
for 3/26: $69.50, up $2.37.
THURSDAY'S CASH HOG CALL: Steady to $2 higher.
Strong buyer support is expected to develop through the rest of the
week. Most bids are expected to develop $1 per cwt higher, but the range
of the market is likely to remain wide. Thursday slaughter is expected
at 477,000 head. Saturday runs are expected at 146,000 head.
 |
| #completecalfcare |
No comments:
Post a Comment