A sense of market stability trickled into the lightly traded livestock markets early Tuesday. This helped to rebuild market confidence despite the light trade seen through the morning. Firm nearby live cattle trade continue to shift buyer interest and helping to rekindle gains through the entire complex. Hog futures remain lightly traded, although strong buying in deferred contracts is leading the complex higher once again. Corn futures are lower in light trade. May corn futures are 4 1/2 cents lower. Stock markets are higher in light trade. Dow Jones is 38 points higher with Nasdaq up 30 points.
LIVE CATTLE:
Strong gains have slowly trickled into nearby live cattle trade with morning support helping to secure gains of 90 cents to $1 per cwt across the complex. There is expected to be some additional underlying support moving into the market as traders focus on underlying support from seasonal buying activity. With the cattle on feed report released at the end of the week, traders have not backed away from buyer support despite the expected light to moderate numbers of cattle in feed yards. This may add some end of the week volatility to the market, but for now, traders seem to be focused on advancing prices higher in order to narrow the current gap between April and June contracts. Cash cattle interest is still sluggish with bids unavailable. There have been a few asking prices developing through late morning with cattle priced at $130 live and $208 dressed. Boxed Beef cut-outs at midday are higher, $0.33 higher (select) and up $1.12 per cwt (choice) with light movement of 75 total loads reported (36 loads of choice cuts, 17 loads of select cuts, 11 loads of trimmings, 10 loads of ground beef).
FEEDER CATTLE:
Firm underlying buyer support is moving through feeder cattle trade despite the minimal market direction early in the session. April futures are stuck 7 cents lower in limited trade, while the rest of the complex is 50 to 80 cents per cwt higher as traders remain focused on increased overall support developing in live cattle trade. There is expected to be some additional underlying support through the complex through the rest of the session.
LEAN HOGS:
Mixed trade is holding across lean hog trade with nearby futures posting limited market direction as trades closely watch strong triple-digit gains seen in deferred contracts. Although trade remains sluggish in later contract months, gains of $1.50 to $2 per cwt are seen in December 2019 through June 2020 contracts. This underlying support continues to focus on the expectation that active buying support will continue long term based on the need of pork in China. The lack of movement in summer and fall contracts seems to be more focused on traders assessing Easter demand given current production levels. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.36 at $76.21 per cwt with the range from $70.00 to $79.00, on 4,195 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price fell $0.31 at $77.46 per cwt with the range from $70.00 to $79.00, on 1,193 head reported sold. Pork values continue to gain support following strong gains in picnic cuts. Pork cutouts added $0.29 per cwt at $86.22 per cwt with 201 loads traded. Lean hog index for 4/12 is $79.57 up 0.23, with a projected two-day index is $79.84 up 0.27.
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