GENERAL COMMENTS:
Strong support flooded livestock trade as
renewed focus on China trade sparked limit hog market gains. Technical
support quickly developed in cattle markets, posting triple-digit gains
in most contracts. Corn futures are higher in light to moderate trade.
May futures added 2 1/2 cent per bushel. Dow Jones Index is 166 points
higher with Nasdaq down 3 points. Cash cattle trade remained undeveloped
Thursday as the light activity seen midweek limited interest due to
higher futures trade. With triple-digit gains seen across live cattle
futures, bids in the north of $124 live and $203 to $205 dressed gained
little to no attention from feeders. Asking prices remain at $127 live
and $208 and higher dressed. But if further futures gains develop Friday
morning, it is expected that asking prices will too. National Daily
Direct afternoon hog report is $1.15 higher with a weighted average of
$76.37 per cwt. Full range of $67.00 to $78.50 per cwt on 8,486 head
sold.
LIVE CATTLE: Sharp gains flooded live cattle
trade due to active buying developing in feeder cattle trade ($1.10 to
$2.57 higher). Strong underlying support moved back into live cattle
trade, which sparked technical support in all nearby contracts. The
ability to bring increased activity through the end of the week may help
spark some buyer interest. This is expected to spark end of the week
buyer activity through the rest of the complex. Beef
cut-outs: mixed, $0.61 lower (select, $218.36) and up $0.60 (choice,
$226.74) with light demand and light offerings, 106 loads (72 loads of
choice cuts, 12 loads of select cuts, five load of trimmings, 17 loads
of coarse grinds).
FRIDAY'S CASH CATTLE CALL: Steady to $1 lower.
Bids are expected to redevelop early Friday with current bids not being
taken seriously due to the sharply rising futures prices. It is expected
that active trade will need to develop in the North, while additional
interest is expected through the south before the end of the week.
FEEDER CATTLE: Active support developed
Thursday, sparking widespread interest across the entire complex ($0.85
to $2.80 higher). Strong triple-digit shifts in feeder cattle erupted
Thursday, allowing for increased underlying support to move back into
the oversold market. The strong move higher in May futures pushed prices
above $150 per cwt for the first time in nearly two weeks. The renewed
support created a bullish technical shift through all cattle trade,
sparking additional underlying interest and potentially sparking
increased volume through the end of the week. CME cash feeder index for
4/3 is $142.88 up $0.44.
LEAN HOGS: Sharp gains flooded through lean hog
trade Thursday, sparking continued expectations ($0.50 to $3.00 higher).
Dpot month April contracts posted limited support based on sluggish
cash market activity and open interest. Focus through the rest of the
complex continues to point to hopes of a trade deal with China and the
ability to move pork products into the country. New contract highs have
developed with July and August futures surging above $100 per cwt. There
is expectations that even though current demand is sluggish, things are
hopeful for the rest of the year. Thanks to limit gains in June
futures, the lean hog futures has expanded trading limits for Friday to
$4.50 per cwt. Expanded trading limits in the hog complex has become a
common occurrence over the last month, adding even more volatility to
the entire market. Pork cutout prices followed futures higher with
triple-digit gains. Pork cutout values added $1.96 per cwt, moving to
$82.22 per cwt on 282 loads.CME cash lean index for 4/2 is $77.70, up
$0.92. DTN Projected lean index for 4/3 $78.26, up $0.56.
FRIDAY'S CASH HOG CALL: $1 lower to $1 higher.
Sharp gains in futures trade is being cautiously watched from the cash
market perspective. Most bids are expected to be steady to firm early
Friday morning, as packers continue to steadily procure needed daily
market ready hogs. Friday slaughter is expected at 471,000 head.
Saturday runs are expected at 145,000 head.
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