As the noon hour approaches, cattle contracts are chewing on the idea of higher trade while the bottom of the lean hog market falls out, driving prices much lower. March corn is down 4 1/4 cents per bushel and March soybean meal is down $2.80. The Dow Jones Industrial Average is down 100.94 points and NASDAQ is down 42.98 points.
LIVE CATTLE
Some light trade is starting to emerge in parts of the South at $122, steady with Wednesday's late trade but $2.00 lower than last week's weighted averages. Cattle trade in the North has yet to really develop though live cattle are bid at $122 and dressed cattle at $194 to $195. As the day progresses it seems as if the board is contemplating the idea of following the feeder cattle market's lead and could try to trade higher. Deferred contracts are trading just slightly over steady while nearby contracts are going to need some more convincing. February live cattle are up $0.07 at $121.82, April live cattle are down $0.30 at $119.92 and June live cattle are down $0.20 at $111.80. If the board is able is able to influence prices to stretch higher, cash cattle trade could end up better than initially assumed.
Boxed beef prices are mixed: choice down $0.17 ($213.35) and select up $0.45 ($212.38) with a movement of 73 loads (43.97 loads of choice, 8.04 loads of select, 4.48 loads of trim and 16.04 loads of ground beef).
FEEDER CATTLE
Finding some mid-morning support, feeder cattle contracts creep into higher prices as the noon hour approaches. March feeders are up $0.67 at $135.65, April feeders are up $0.20 at $137.27 and May feeders are up $0.05 at $139.35. The March contract is getting an extra shot of support from traders who have to move their position from the expiring January contract -- which expires today.
LEAN HOGS
The lean hog market continues to break lower as nearby contracts trade $3.00 lower and the rest of the complex isn't far behind. February lean hogs are down $3.00 at $61.30, April lean hogs are down $3.00 at $65.82 and May lean hogs are down $3.00 at $72.32. Some of the market's chaos could be stemming from the continued worry of the coronavirus, and news that a vaccine that would prevent African swine fever is being tested. This would come as bearish news to American markets as U.S. hog producers have rigorously increased inventory anticipating that China's herd would be below usual production levels for quite some time.
The projected lean hog index for 1/29/2020 is up $0.38 at $62.78 and the actual for 1/28/2020 is up $0.66 at $62.40. Hog prices are lower on the National Direct Morning Hog Report, down $0.33 with a weighted average of $54.98, ranging from $48.00 to $55.94 on 4,865 head sold and five-day rolling average of $53.90. Pork cutouts total 199.19 loads with 181.01 loads of pork cuts and 18.17 loads of trim. Pork cutouts values: up $0.90, $72.29.
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