GENERAL COMMENTS:
It's been a quiet week for the cash cattle market, but around the noon hour Wednesday some cash cattle trade developed in parts of Kansas for $2.00 higher, giving the board the confidence it needed to hold nearby live cattle contracts higher. The feeder cattle complex traded mostly lower, and although the lean hog futures closed lower too, cash prices weren't too shabby. Hog prices closed higher again on the National Direct Afternoon Hog Report, up $1.91 with a weighted average of $60.88 on 8,833 head. December corn is up 5 3/4 cents per bushel and December soybean meal is up $6.50. The Dow Jones Industrial Average is up 36.78 points and NASDAQ is down 139.85 points.
LIVE CATTLE:
Around the noon hour some support started to develop in the heart of the live cattle contracts, and with the midday jump in cash cattle prices, the market's support stuck through closing. October live cattle closed $0.37 lower at $106.72, December live cattle closed $0.37 higher at $111.95 and February live cattle closed $0.22 higher at $116.25. A perfect example of true price discovery, even though this week's market was anticipated to trade steady (at best), once news developed that packers were planning for a lighter kill on Saturday, feeders stood together and continued to deny lower bids until higher prices slid across the table. Trade didn't develop throughout the countryside, but there was a moderate movement in the South for $103 to $103.50, which is easily $2.00 higher than last week's average. The North continues to be in a standstill as no action has developed in those regions yet. Wednesday's slaughter is estimated at 120,000 head, steady with a week ago and 3,000 head more than a year ago.
Boxed beef prices closed lower: Choice down $0.17 ($215.38) and select down $1.77 ($204.51) with a movement of 166 loads (95.35 loads of choice, 27.71 loads of select, 6.24 loads of trim and 36.89 loads of ground beef).
THURSDAY'S CASH CATTLE CALL: Steady with the week's trend. Seeing that packers are interested in cattle this week, if feeders stick together and push for $103, the rest of the week it should be attainable.
FEEDER CATTLE:
Nearby feeder cattle contracts saw the market's biggest regression and the charts are forming more short-term resistance at $144. Needing a technical boost in order to move the market higher, the feeder cattle complex floats lower while also feeling pressured from worries of feed costs, as drought and fire are common talk this week. September feeders closed $1.17 lower at $140.50, October feeders closed $1.27 lower at $142.42 and November feeders closed $0.60 lower at $143.52. At OKC West Livestock Auction in El Reno, Oklahoma, compared to last week, feeder steers under 900 pounds sold $4.00 to $6.00 higher while steers over 900 pounds sold $1.00 to $3.00 higher. Feeder heifers traded $4.00 to $8.00 higher. Other than unweaned, bawling calves that had minimal demand, the rest of the sale sold commendably. Colder weather is pushing into the region putting a little more stress on calves. The CME feeder cattle index 9/15/2020: up $0.08, $140.60.
LEAN HOGS:
Aside from another strong close in the cash market, the market's major newsworthy attention was that Japan joined South Korea, China and Singapore in banning German pork imports due to African swine fever concerns. The futures market didn't burst higher at the announcement, but the day's losses were mostly minimal other than in the December 2020 and February 2021 contracts. October lean hogs closed $0.47 lower at $65.22, December lean hogs closed $1.07 lower at $61.97 and February lean hogs closed $0.95 lower at $67.75. Pork cuts totaled 338.65 loads with 297.49 loads of pork cuts and 41.16 loads of trim. Pork cutout values: down $1.12, $83.14. Wednesday's slaughter is estimated at 485,000 head, 1,000 head more than a week ago and 2,000 head shy of a year ago. The CME lean hog index 9/14/2020: up $0.80, $65.35.
THURSDAY'S CASH HOG CALL: Steady to higher. Packers could pull back and keep Thursday's trade steady, but with the market's anticipation of more exports, they will most likely keep vigorously demanding hogs.
No comments:
Post a Comment