GENERAL COMMENTS: Support continued to build in the lean hog market midweek on expectations of stable hog supplies and strong global demand. Cattle futures remained mixed as support continued to erode in the feeder cattle market. Cash cattle trade was seen through the South and some areas in eastern Nebraska at $117 per cwt live basis. This is $3 per cwt below week ago levels and is likely to have set the overall tone for the week, at least for live cattle trade. Asking prices remain at $120 live and $196 and higher dressed basis. Given the direction over the last month, trade in the South may be wrapped up for the week, but trade in the North is expected over the next couple of days. The National Daily Direct afternoon hog report was $0.22 lower ($72-$85, weighted average $81.79) on 7,225 head sold. Corn futures posted fractional gains in light trade with July up 3/4 cent per bushel. The Dow Jones Index was 151 points higher with Nasdaq up 92 points.
LIVE CATTLE: Live cattle futures saw limited support Wednesday afternoon despite pressure in the feeder cattle. Futures settled $0.02 to $0.27 higher. Trade remained sluggish throughout the day. With prices $12 to $14 per cwt over the last six weeks, active liquidation developed in all areas of the market. Light-to moderate trade interest is expected the rest of the week. But it appears traders will continue to build on recent support, as firm demand is expected to bring additional buyers to the table. Beef cut-outs were unavailable at the time these comments were posted.
THURSDAY'S CASH CATTLE CALL: Steady to $3 lower. Light trade that started Wednesday in the South is expected to set the tone for lower market prices. Although additional trade is expected, pressure may continue to develop despite firmness in futures trade.
FEEDER CATTLE: Feeder cattle futures were under pressure again Wednesday following strength in grains and concerns that higher feed prices will further weaken feeder cattle trade. Futures closed $0.07 to $0.60 lower. More focus is being placed on the potential for corn prices to move higher if the wet weather results in lower acreage. Although corn planting is still going on, the slow pace of planting and continued cold, wet weather is causing many to speculate that prevented planted acres will be significantly higher this year. CME cash feeder index for 5/14 is $134.81, down $0.26.
LEAN HOGS: Nearby lean hog futures saw triple-digit gains as traders focused on the potential for growing global pork demand. Futures settled $0.10 lower to $2.70 higher. Light-to-moderate volume was seen throughout the day as traders seemed to move beyond their initial concerns about higher tariffs. The feeling seems to be that global pork demand will still increase despite the ongoing U.S.-China trade war. But traders seem to be much more realistic about moving prices higher than they were during the previous market rally in early April. Despite lingering uncertainty, expected strong summer domestic demand coupled with global pork needs is helping to stimulate buyer support. Pork cutout values were reported at the time these comments were posted. CME cash lean index for 5/13 is $83.27, up $0.23. DTN Projected lean index for 5/14 is $83.67, up $0.40.
THURSDAY'S CASH HOG CALL: $1 lower to $1 higher. Futures market firmness is doing very little to change cash market direction. Packers are focusing on short-term needs as they slowly reduce packing schedules, making just-in-time purchases. Most bids are expected steady Thursday morning. Thursday slaughter levels are expected at 465,000 head with 74,000 expected Saturday.
 |
| #completeherdhealth |
No comments:
Post a Comment