GENERAL COMMENTS:
Whether you have the utmost respect for President Trump or bitter feelings for his Presidency, the signing of the phase one trade agreement is done. What we know is that China will buy $80 billion of U.S. ag purchase in the next two years, but the specifics are being kept confidential. Out of respect to China, the U.S. must keep those specifics confidential so that the market isn't tipped.
Hog prices are higher on the National Direct Afternoon Hog Report, up $0.27 with a weighted average of $51.68. March corn is down 1 1/2 cents per bushel and March soybean meal is down $1.90. The Dow Jones Industrial Average is up 90.55 points and NASDAQ is up 7.37 points.
LIVE CATTLE:
Live cattle contracts took a turn for fully lower prices after the noon hour and carved the day out to trade steady once again. February live cattle closed $0.25 lower at $126.60, April live cattle closed $0.37 lower at $127.50 and June live cattle closed $0.30 lower at $119.42. All in all the day mostly amounts to the fact that with the agreement being signed in the heart of the trading hours, traders were adamant about watching how the agreement is defined and ultimately let the day coast uneventfully. A handful (hardly any) of fats sold for mostly steady prices of $124 to $124.25 in parts of Kansas and Texas, and Iowa sold some dressed cattle for $198 dressed.
Boxed beef prices are lower: choice down $0.23 ($212.53) and select is down $0.63 ($209.67) with a movement of 163 loads (111.41 loads of choice, 16.97 loads of select, 8.13 loads of trim and 26.87 loads of ground beef).
Wednesday's slaughter is estimated at 122,000 head, steady with a week and year ago.
THURSDAY'S CASH CATTLE CALL: $1.00 higher. Feeders are going to be adamant about pushing prices close to their asking prices this week seeing that slaughter continues to strong and that last week average for simply steady. It wouldn't be surprising to see trade wait until sometime Friday.
FEEDER CATTLE:
Feeder cattle contracts closed the day as they initially started, lower in nearby contracts and slightly higher in deferred. January feeders closed $0.47 lower at $145.42, March feeders closed $0.55 lower at $145.17 and April feeders closed $0.45 lower at $148.20. Tuesday at Winter Livestock in La Junta, Colorado, 7,434 head of feeders sold and compared to last week steers under 400 pounds sold $10.00 higher, 400 to 450 pounds steers sold steady, 450 to 700 pounds sold $2.00 to $4.00 lower. Heifers under 500 pounds sold $3.00 to $5.00 higher with instances of $10.00 higher. Heifers weighing 500 to 600 pounds sold $2.00 to $4.00 higher, and heifers weighing 650 to 700 pounds sold steady. The CME feeder cattle index 1/14/2020: not available at this time.
LEAN HOGS:
Lean hog contracts closed the day almost completely higher expect in the April 2020 contract. This Wednesday comes as a (half) sigh of relief as the phase one trade agreement was signed, but what that exactly means for exports is unclear. Some of the details must remain confidential to protect the market from unnecessary swings, and other pieces of the agreement will surface in time. February lean hogs closed $0.20 higher at $67.87, April lean hogs closed $0.02 lower at $74.97 and May lean hogs closed $0.37 higher at $81.47.
Pork cutouts total 314.50 loads with 282.92 loads of pork cuts and 31.58 loads of trim. Pork cutout values: up $0.36, $74.65. Wednesday's slaughter is estimated at 498,000 head, steady with a week ago and 21,000 head more than a year ago. The CME lean hog index 1-13-2020: up $0.01, $59.00.
THURSDAY'S CASH HOG CALL: Slightly higher. The cash market has bumped higher a couple times this week and it wouldn't be unlikely to see it bump higher again Thursday as pork movement remains strong. The phase one agreement was successfully signed and pork cutout values are higher.
 |
| #completecalfcare |
No comments:
Post a Comment