General Comments
Heading into the noon hour live cattle and lean hog contracts are trending steadily higher while the feeder cattle contracts feel great pressure to trade lower as there's worry about how the feeder cattle market will hold if cash cattle prices continue to weaken and summer temperatures rise.
July corn is down 2 cents per bushel and July soybean meal is down $1.50. The Dow Jones Industrial Average is down 134.98 points and NASDAQ is up 28.42 points.
LIVE CATTLE
Live cattle contracts are trading higher with confidence despite cash cattle prices scaling lower. August live cattle are up $0.90 at $96.22, October live cattle are up $0.77 at $98.77 and December live cattle are up $0.80 at $102.85. New showlists appear to be somewhat larger in Kansas, and larger in Texas and Nebraska/Colorado. Though asking prices have yet to surface this week, Nebraska is seeing some early cash cattle activity. Cattle have already sold dressed for $167 (with delivery late this week of early next week) while others have sold for $159 (with delivery for week of 6/29/2020). There haven't been many cattle sales as of yet but some trades are developing nonetheless.
USDA National Weekly Direct Slaughter Cattle -- Negotiated Purchases shared that last week packers bought 96,015 head of cattle. Of that 86,077 head sold for delivery in the next two weeks and the remaining 9,938 head sold for delivery in the following 15 to 30 days.
Boxed beef prices are lower: choice down $0.77 ($229.87) and select down $4.10 ($215.17) with a movement of 110 loads (69.81 loads of choice, 16.11 loads of select, 9.72 loads of trim and 14.28 loads of ground beef).
FEEDER CATTLE
Feeder cattle contracts are hesitant how to head into the new week as the rest of the contracts trade higher but there's looming pressure with cash cattle trending lower and summer temperatures starting to wreak havoc on pastures. August feeders are down $0.35 at $130.75, September feeders are down $0.57 at $131.90 and October feeders are down $0.17 at $132.97. Looking further into the feeder cattle contracts there's some modest support for November 2020 and January 2021 contracts as trades try to pinpoint when the backlog of cattle will be worked through and when feedlots will be itching to stock their bunks with new cattle.
LEAN HOGS
Lean hog contracts are trending modestly higher with nearby contracts taking a big leap while the rest of the contracts trend modestly. July lean hogs are up $1.20 at $52.87, August lean hogs are up $0.92 at $55.57 and October lean hogs are up $0.37 at $53.52. Most of the complex's trading volume lies in the two nearby contracts as the June contract expired last week. As the market continues to inch towards current-ness, a light at the end of the tunnel seems more and more reassuring.
The projected lean hog index for 6/12/2020 is down $0.59 at $48.38, and the actual index is down $1.02 at $48.97. Hog prices are not available due to packer submission problems. Pork cutouts total 175.94 loads with 161.54 loads of pork cuts and 14.40 loads of trim. Pork cutout values: down $1.74, $68.25.
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