GENERAL COMMENTS:
With news filtering around about the phase one trade agreement, another packing plant being closed and the fall feeder run under full swing -- Monday closed better than assumed. Hog prices are up on the National Direct Afternoon Hog Report, up $0.24, with a weighted average of $56.94. December corn is down 3 3/4 cents per bushel and December soybean meal is down $0.80. The Dow Jones Industrial Average is up 55.54 points and NASDAQ is up 73.45 points.
LIVE CATTLE:
Live cattle closed slightly higher Monday. Gains and losses were projected across the screen during various parts of the day, but Monday was able to secure the gain. December live cattle closed $0.25 higher at $113.87, and all other contracts closed $0.05 to $0.47 higher. Cash trade has yet to develop this week.
Closing boxed beef prices are up significantly: choice up $2.09 ($220.13) and select up $1.40 ($194.44) with slim movement of 86 loads (49.52 loads of choice, 17.15 loads of select, 9.10 loads of trim and 10.38 loads of ground beef).
TUESDAY'S CASH CATTLE CALL: Steady. It's too early in the week to know how the dice are going to roll. Given the fact that boxed beef prices are up significantly could stimulate packers to buy aggressively. But if the Cargill plant neglects to run this week or wait until later in the week, simple supply implications will make it hard to get more money for fats with a long line awaiting the processing plant.
FEEDER CATTLE:
Feeder cattle futures closed mostly lower Monday. November feeder cattle closed the day unchanged, but most contracts closed $0.07 to $0.35 lower, except for the May 2020 contract, which closed up $0.12. So far sale-barns have been able to rally buyers and sell calves like they are going out of style. In South Dakota last week there were instances where feeder calves sold $14.00 higher than the previous week's weighted average. On an estimated run of 6,469 head (up 1,574 head from the previous week) feeders in Crawford, Nebraska, sold unevenly steady. There was a good amount of buyers for strings and packers of mainly preconditioned calves that were coming straight off the cow. Trade was good and demand was moderate to instances of good and some demand was coming through internet bidding. The CME feeder cattle index for 10/18/19: not available at time of posting.
LEAN HOGS:
China's economy may be weakening, but U.S. pork markets smell an opportunity. Except for the December contract (down $0.12 at $67.82), the lean hog market closed $0.15 to $0.95 higher with growing interest developing in the June 2020 contract. Pork cutouts totaled 258.04 loads with 226.83 loads of pork cuts and 31.21 loads of trim. Pork cutout values: up $1.50 at $78.53. The CME lean hog index for 10/17/19: $65.64 up $0.74.
MONDAY'S CASH HOG CALL: Steady. Given the fact that the domestic hog supply is bursting at its seams, cash hog prices will probably be steady at best unless breaking news develops over export opportunities. News from the Trump administration notes that the phase one agreement with China is going well, and officials expect to have made significant progress by mid-November.
 |
| #completeherdhealth |
No comments:
Post a Comment