General Comments
The live complex is feeling some nearby resistance while deferred contracts rally moderately. The looming backlog of cattle continues to weigh on the market and the weakening cash cattle market is solidifying the weakness. Feeder cattle are seeming to be uninfluenced by the indecisiveness in the live cattle complex, all while lean hog contracts trade steadily lower. July lean hogs are down $0.30 at $49.35, July corn is steady and July soybean meal is steady. The Dow Jones Industrial Average is down 44.34 points and NASDAQ is up 53.68 points.
LIVE CATTLE
Live cattle contracts are battling the hard facts of the industry in nearby contracts (large backlog of cattle and weakening cash cattle prices) with the deferred contracts gingerly trading higher. August live cattle are down $0.17 at $96.60, October live cattle are down $0.05 at $99.67 and December live cattle are steady at $103.87. A light developed of trade has popped up all throughout the countryside with Southern live cattle trading for $102; which is oddly $2.00 to $4.00 higher than this week's trade but $1.50 lower than Texas's weighted average and $3.00 lower than Kansas' weighted average. Northern trade is developing at $160 to $162; which as odd as it is, is $2.00 to $5.00 higher than Monday and Tuesday's trade but $7.00 lower than last week's averaged. Some asking prices remain firm around $108 to $110 in the South, and $170-plus in the North.
Putting your finger on why packers would bid higher in the middle of the week when they've been able to buy cattle cheaper earlier in the week is challenging. But if God wanted to write an 11th commandment it may have been, "If packers buy cattle early in the week, it's because they NEED cattle." Seeing that a lot of the cattle that have been bought in Nebraska are set to be delivered late this week or early next week leads one to believe they are indeed short bought.
The Fed Cattle Exchange Auction listed a total of 1,220 head (508 head in Kansas, 278 head in Nebraska, and 434 head in Texas) all set for 1-17-day delivery.
Boxed beef prices are lower: choice down $8.87 ($219.02) and select down $0.99 ($212.18) with a movement of 122 loads (82.40 loads of choice, 18.10 loads of select, 6.08 loads of trim and 15.77 loads of ground beef).
FEEDER CATTLE
Feeder cattle contracts are braving the front of the cattle market's strength while cash cattle prices scale lower and the nearby live cattle contracts weaken. Much of the North and Midwest are getting showers this week, which comes as an answered prayer as farmers and cattlemen alike need the moisture. August feeders are up $0.45 at $133.37, September feeders are up $0.25 at $134.70 and October feeders are up $0.30 at $135.77. Heading into the afternoon it will be important to watch and see how feeder cattle contracts trade as trader participation is slim and the live cattle contracts are teetering.
LEAN HOGS
The lean hog contracts haven't had much optimism breeze through the complex this week as Tuesday dropped significantly lower and much of the complex is trading lower through Wednesday. July lean hogs are down $0.27 at $49.37, August lean hogs are down $0.07 at $52.95 and October lean hogs are down $0.72 at $51.00. There's been a lot of product moved this week indicating that consumers are buying proteins and that demand is still live throughout the countryside.
The projected lean hog index for 6/16/2020 is down $0.73 at $47.37 and the actual index for 6/15/2020 is down $0.28 at $48.10. Hog prices are lower on the National Direct Morning Hog Report, down $0.58 with a weighted average of $28.48, ranging from $25.00 to $29.98 on 4,201 head and a five-day rolling average of $29.38. Pork cutouts total 2341.41 loads with 220.02 loads of pork cuts and 21.39 loads of trim. Pork cutout values: up $4.97, $69.24.
 |
| #completecalfcare |
No comments:
Post a Comment