GENERAL COMMENTS: Feeder cattle and lean hog futures fell Tuesday on a lack of market support. Early live cattle support helped to stabilize the market, leaving futures in a mixed range in limited volume. Cash cattle interest remained at a near standstill with bids and asking prices generally undefined going into midweek. The late start to the trade week due to the holiday on Monday has most packers and feed yards willing to wait until later in the week before stepping up with price levels. It is expected that trade may be pushed to the second half of the week, although at this point, some limited Wednesday trade could still develop, but not likely. The National Daily Direct afternoon hog report was $1.07 lower ($72-$78, weighted average $76.90) on 5,482 head sold. Corn futures surged higher in active trade with July up 16 cents per bushel. The Dow Jones Index was 234 points lower with the NASDAQ down 29 points.
LIVE CATTLE: Live cattle traders remained on the sidelines Tuesday, resulting in a mixed close, $0.47 lower to $0.37 higher. Initial buyer support in live cattle futures eroded following losses in feeder cattle trade. The June futures contract led the complex higher, but the limited volume in spot-traded futures seemed to instill little confidence that additional support may develop over the near future. Traders are caught between aggressive losses in hog and feeder cattle trade and the focus on growing beef demand. Beef cut-outs: higher, up $1.98 (select, $210.45) to up $1.65 (choice, $223.29) with moderate demand and offerings, 106 loads (49 loads of choice cuts, 22 loads of select cuts, 22 load of trimmings, 14 loads of coarse grinds).
WEDNESDAY'S CASH CATTLE CALL: Steady. Limited interest Tuesday is expected to push any bids and asking prices to midweek or later. It is uncertain if active buyer interest will be seen Wednesday in the South as has developed over the past several weeks due to the holiday Monday.
FEEDER CATTLE: Feeder cattle futures closed $0.92 to $1.40 lower on rising production costs. Triple-digit losses held in most contracts Tuesday. Even though prices backed away from session lows, the pressure became more intense through midday following double-digit gains in corn futures on continued concern about planting rates and long-term supplies. Feeder cattle traders are being affected more by short- and long-term production costs associated with feeding cattle. This has a direct relationship with the price paid for feeder cattle and may continue to erode market support. CME cash feeder index for 5/27 is $136.55, up $0.50.
LEAN HOGS: Lean hog futures were under pressure Tuesday as traders continued to focus on technical pressure. The full range of closes was $2.45 lower to $0.02 higher. Lean hog futures are trading at their lowest levels in over two months with traders focusing on uncertainty over a trade deal with China. Technical selling continues to be driving the complex as widespread liquidation is seen through the end of May. Pork cutouts rallied following an $11-per-cwt gain in belly cuts. Pork cutout values gained $2.69 per cwt, moving to $85.96 per cwt on 254 loads. CME cash lean index for 5/23 is $84.02, down $0.34. DTN Projected lean index for 5/24 is $83.31, down $0.71.
WEDNESDAY'S CASH HOG CALL: Steady to $1 lower. Firm follow-through pressure is expected to be seen in cash bids, although as packers attempt to fill procurement needs, the potential of posting significant losses may be limited. Wednesday's slaughter is expected at 466,000 head.
 |
| #completeherdhealth |
No comments:
Post a Comment