GENERAL COMMENTS: Renewed buyer support flooded into the lean hog market Wednesday, pushing deferred futures contracts triple digits higher. Cattle futures, on the other hand, eroded in light-to-moderate trade. Cash cattle activity started to develop on Wednesday with light-to-moderate trade seen in Kansas and Texas at $124 per cwt. This is fully steady with last week. Although additional trade may be done this week, the tone of the market is likely set. Northern trade is undeveloped with bids of $127 live and $203 dressed, but this is still well below asking prices. Trade may be delayed until Friday. The National Daily Direct afternoon hog report was $0.47 higher ($67.50-$78, weighted average $75.68) on 9,912 head sold. Corn futures were higher in light-to-moderate trade with May up 1 3/4 cents per bushel. The Dow Jones Index was 6 points higher with the Nasdaq up 54 points.
LIVE CATTLE: Live cattle futures followed feeder cattle lower, settling down $0.02 to $0.72. Cattle markets continue to remain range bound, and will likely stay within a sideways trading pattern due to generally steady demand, while beef supplies remain adequate. Beef cut-outs: higher, up $0.82 (select, $219.62) to up $0.73 (choice, $229.05) with moderate demand and offerings, 140 loads (77 loads of choice cuts, 36 loads of select cuts, 6 load of trimmings, 20 loads of coarse grinds).
THURSDAY'S CASH CATTLE CALL: Steady. Light-to-moderate activity in the South Wednesday is expected to have set the tone of the market with midweek trade steady with last week. Activity is expected to develop in the North over the next couple of days, and additional trade in the South may be needed.
FEEDER CATTLE: Feeder cattle futures closed $0.30 to $0.97 lower. Nearby contracts led the complex lower as traders seemed to focus on support developing in the grain trade as well as the potential for firming supplies of cattle available on the market in the short term. Additional market shifts are expected in coming weeks, but the current market trend is expected to remain sideways through the near future. CME cash feeder index for 4/9 is $143.63, up $0.13.
LEAN HOGS: Despite pressure early in the session, buying flooded into deferred lean hog contracts Wednesday. Futures closed $0.35 to $3.25 higher. The wide market swing seen during Wednesday's session creates additional positioning opportunities for many traders, but it is becoming more challenging for producers to keep up with the price shifts. Nearby futures saw limited activity at the end of the session, while December utilized the expanded trading limit, closing $3.25 per cwt higher. Pork cutout prices firmed following wide price shifts in several primal cuts. Pork cutout values added $0.83 per cwt, moving to $83.94 per cwt on 263 loads. CME cash lean index for 4/8 is $78.89, up $0.21. DTN Projected lean index for 4/9 $79.29, up $0.40.
THURSDAY'S CASH HOG CALL: $1 lower to $1 higher. The price shifts in both futures and pork cutout values through the last week has created uncertainty through the complex. Cash buying is expected to be generally stable with most bids steady, although wide price ranges are expected depending on packers' current needs for market-ready hogs. Thursday's slaughter is expected at 477,000 head. Saturday runs are expected at 52,000 head.
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