GENERAL
COMMENTS: Cattle futures posted moderate losses in most contracts with
feeder cattle closing 70 to 80 cents per cwt. Although late-day market
shifts cut initial pressure in half, the weaker tone and lack of
follow-through buyer interest from Friday's rally is causing traders to
pause and wait for additional information later in the week. Hog futures
remain mixed as limited buying was driven from deferred contracts and
the focus is on long-term demand growth. Corn futures posted moderate
gains in light trade. July futures added 5 3/4 cents per bushel. Dow
Jones Index is 84 points lower with Nasdaq down 105 points.
CASH MARKETS: Cash cattle interest remains quiet
early in the week with bids and asking prices undeveloped. The price
pressure developing over the last couple of weeks is creating additional
concerns of follow-through weakness through the end of the month.
Showlists appear to be mixed with lighter totals in Kansas, while Texas
and Nebraska are showing additional cattle for sale compared to last
week. Additional interest is likely over the next couple of days
following the growing trend of midweek trade over the last few weeks.
The National Daily Direct afternoon hog report is $0.23 lower with a
weighted average of $80.92 per cwt. Full range of $72.00 to $83.00 per
cwt on 10,835 head sold.
LIVE CATTLE: Mixed trade developed as traders
closely followed feeder cattle and corn trade ($0.57 lower to $0.17
higher). Limited volume developed in nearby live cattle futures Monday
with traders showing little interest as prices continue to move away
from recent market lows. June live cattle futures posted a 7 cent per
cwt rally, as traders try to become well established in the choppy but
sideways market trend. Following the ability to establish support levels
at $109.50 in June futures and $106.72 per cwt in August contracts,
traders have been looking for the opportunity to post further support.
But early week pressure in feeder cattle and the renewed focus on rising
grain markets have limited buyer activity late Monday. Beef cut-outs:
mixed, $0.25 lower (select, $208.03) and up $1.14 (choice, $221.45) with
light demand and offerings, 110 loads (68 loads of choice cuts, 24
loads of select cuts, 7 load of trimmings, 11 loads of coarse grinds).
TUESDAY'S CASH CATTLE CALL: Steady. Limited
activity is expected through the early part of the week following weaker
cash cattle trade this week.
FEEDER CATTLE: Firm pressure developed early
Monday as traders backed away from previous gains ($0.32 to $0.82
lower). The overall lack of support early in the week has very little to
do with market projections or any fundamental change in the complex,
but more to do with traders taking positions following a bounce above
long-term lows. The focus in the complex is expected to remain unstable
although the expectation of renewed buyers moving into the complex
should help spark some underlying support through the entire market. CME
cash feeder index for 5/17 is unavailable at this time.
LEAN HOGS: Lean hog futures continue to wander
within the wide sideways trend established during early May ($0.62 lower
to $0.75 higher). Light-to-moderate support moved into late-summer and
winter contracts as traders continue to focus on the potential for
increased pork demand worldwide based on the impact of Asian swine
fever. Even though the lack of a trade deal with China and increased
tariff issues are at the forefront of most minds, the focus has been
moving to the need to supply the world with pork, which is keeping
traders positive for the time being. Although accurate numbers of hogs
and pork production in China are hard to quantify, the potential remains
that African swine fever totals may be larger than yearly U.S.
production. The amount of pork produced in China alone as well as the
demand in the country is hard to comprehend given current production
levels. Pork cutouts firmed Monday following moderate to strong support
in most primal cuts. Pork cutout values added $1.22 per cwt, moving to
$85.13 per cwt on 258 loads. CME cash lean index for 5/16 is $84.59, up
$0.38. DTN Projected lean index for 5/16 is $84.59, unchanged.
TUESDAY'S CASH HOG CALL: Steady to $1 lower.
Packers continue to balance available market-ready hogs with the ability
to maintain stable margin levels. This has continued to see lighter
procurement levels as packers focus on margin improvement but still
fulfilling current pork commitments. Tuesday's slaughter is expected at
465,000 head.
 |
| #completeherdhealth |
No comments:
Post a Comment