GENERAL COMMENTS:
Wednesday was another tough close for the cattle contracts, but the lean hog contracts were able to close mixed with deferred contracts rallying modestly. Push back from the cash market has only added to traders' fears that the cattle contracts are reaching a short-term top. Hog prices closed sharply higher on the National Direct Afternoon Hog Report, up $1.38 with a weighted average of $43.66 on 8,197 head. October lean hogs are down $0.40 at $55.55, December corn is down 1/4 cent per bushel and December soybean meal is down $0.70. The Dow Jones Industrial Average is up 66.65 points and the NASDAQ is up 189.50 points.
LIVE CATTLE:
All live cattle contracts closed lower Wednesday -- just like the feeder cattle complex -- with all contract months down more than $1. October live cattle closed $1.77 lower at $107.00, December live cattle closed $1.17 lower at $110.52 and February live cattle closed $1.07 lower at $113.15. Traders look at the market and see toppy charts that could be costly, and packers look through their inventory knowing that the nearby market is at their mercy, considering that they are sitting on a lofty supply. The bulk of Wednesday's trade came midmorning following the Fed Cattle Exchange's business. As the afternoon progressed, packers were less interested and the feedlots that have yet to sell want higher prices and are hoping that, by waiting until later in the week, packers may give a little more. Bids of $105 live and $165 to $167 dressed are still on the table in Iowa and Nebraska. Wednesday's slaughter is estimated at 118,000 head -- 1,000 fewer head than a week ago and 1,000 head more than a year ago.
Boxed beef prices closed higher: choice up $1.77 ($231.45) and select up $1.85 ($214.11) with a movement of 121 loads (56.64 loads of choice, 15.76 loads of select, 18.89 loads of trim and 29.44 loads of ground beef).
THURSDAY'S CASH CATTLE CALL: Steady. It's going to be hard to move packers into paying higher prices as they've got plenty of inventory and they've been paying higher prices for the last two months.
FEEDER CATTLE:
Feeder cattle contracts struggled through Wednesday's afternoon trade as the complex closed $1.15 to $1.62 lower. September feeders closed $1.30 lower at $141.77, October feeders closed $1.15 lower at $141.92 and November feeders closed $1.27 lower at $142.42. And as the complex moves further and further away from the recent highs, traders continue to let the market fall lower, as many saw a nearby top growing. As feeder cattle contracts continue to slip lower, the market is teetering only slightly above the 40-day moving average of $141.13, and the 100-day moving average sits at $132.33. At Winter Livestock in Dodge City, Kansas, compared to a week ago, feeder steers weighing 700 to 950 pounds sold $2.00 to $5.00 lower. Heifers were harder to test but a stronger undertone was noted. Slaughter cows and bulls sold $1.00 to $3.00 lower. The CME feeder cattle index 8/25/2020: down $0.02, $143.60.
LEAN HOGS:
Wednesday wasn't all good but neither was it all bad for the lean hog complex, as nearby contracts closed lower, but deferred contracts and cash prices both closed higher. The spot October contract was able to keep above the $55.00 threshold but only by a mere $0.55. If Thursday is another day of weaker trade, the spot contract is going to be pressured to fall below the recently incurred resistance. October lean hogs closed $0.40 lower at $55.55, December lean hogs closed $0.35 lower at $56.32 and February lean hogs closed $0.05 lower at $62.72. Pork cutout totaled 358.01 loads with 340.47 loads of pork cuts and 17.54 loads of trim. Pork cutout values: down $2.91, $71.90. Wednesday's slaughter is estimated at 482,000 head -- 6,000 head more than a week ago and 7,000 head less than a year ago. The CME lean hog index 8/24/2020: up $0.54, $56.60.
THURSDAY'S CASH HOG CALL: Steady. After two days of substantial gains in the cash hog market, a third day of higher gains would obviously be well received, but as packers have bought a considerable number of hogs over the past few days, their bids may come in steady.
 |
| #completeherdhealth |
No comments:
Post a Comment