GENERAL COMMENTS:
The livestock contracts once again closed mixed as cattle contracts waned lower and the lean hog contracts fought to keep any support that was available. Hog prices closed lower on the National Direct Afternoon Hog Report, down $1.03 with a weighted average of $49.01 on 11,134 head. March corn is up 8 1/2 cents per bushel and March soybean meal is up $3.50. The Dow Jones Industrial Average is up 73.89 points and NASDAQ is up 19.78 points.
LIVE CATTLE:
The futures market may be trading mostly lower throughout the live cattle contracts, but feedlots know what they are sitting on. Frankly, feedlots see the market's beef demand growing and they aren't willing to settle for less when more can be attained this week! February live cattle closed $0.12 lower at $114.45, April live cattle closed $0.17 lower at $118.60 and June live cattle closed $0.40 lower at $113.87. Some light trade developed Wednesday afternoon for fully higher prices as feedlots were relentless and demanded their full asking prices. Trade in Texas was marked at $111, which is $1.00 higher than a week ago. Some trade in Nebraska and Iowa surfaced live at $112, which is $4.00 higher than a week ago, and a few dressed deals were reported in Nebraska for $176, which is $4.00 higher as well. For cattle that are left to sell, asking prices are firm at $112 to $114 in the South and $178 to $180-plus in the North. Wednesday's slaughter is estimated at 117,000 head, 4,000 head more than a week ago and incomparable to a year ago.
The Fed Cattle Exchange Auction listed a total of 1,015 head, of which 194 actually sold and 821 head were listed as unsold. The state-by-state breakdown looks like this: Texas 951 total head, with 194 head sold at $111.00 and 757 head unsold; Nebraska 64 total head, none of which sold.
Boxed beef prices closed higher: choice up $0.23 ($210.53) and select up $4.38 ($199.86) with a movement of 141 loads (80.64 loads of choice, 21.20 loads of select, 15.70 loads of trim and 23.27 loads of ground beef).
THURSDAY'S CASH CATTLE CALL: Steady to slightly higher. With how strong the cash cattle market is trading, Thursday's trade will at least be steady if not slightly stronger, as feedlots know what their cattle are worth and packers don't want to go into the new year short-bought.
FEEDER CATTLE:
The feeder cattle contracts veered lower throughout Wednesday's trade as the corn market scales to price levels not seen since 2014. January feeders closed $1.10 lower at $138.52, March feeders closed $1.47 lower at $139.75 and April feeders closed $1.32 lower at $141.65. Until after the first of the year when the market can level out from the oddities that the holidays can bring, anxious trade is expected. At Sioux Falls Regional Livestock Auction in Worthing, South Dakota, compared to two weeks ago on a light test, steers sold $5.00 to $6.00 higher and heifers sold steady with a slightly higher undertone. The market's demand was excellent for the limited offering available. The snowstorm that blew in Tuesday made it difficult for producers to travel and consequently led to a smaller sale. The market was extremely active, and packers were willing to push the market higher. Slaughter cows were $2.00 higher and bulls sold with higher undertones. The CME feeder cattle index for Dec. 29: up $0.31, $138.71.
LEAN HOGS:
While the cattle contracts traded lower, the lean hog market worked to keep its upward momentum and was able to do so through Wednesday's close. Some nearby contracts faced slight pressure, but largely the market kept its foothold and the day's higher cutout close has helped keep the positive attitude alive. February live cattle closed $0.40 higher at $67.60, April lean hogs closed steady at $71.07 and June lean hogs closed $0.05 lower at $81.95. Pork cutouts totaled 343.24 loads with 288.86 loads of pork cuts and 54.38 loads of trim. Pork cutout values: up $0.29, $72.65. Wednesday's slaughter is estimated at 472,000 head, 41,000 head more than a week ago and incomparable to a year ago. Tuesday's hog slaughter was revised to 451,000 head. The CME lean hog index for Dec. 28: down $0.67, $59.93.
THURSDAY'S CASH HOG CALL: Lower. Seeing that packers have lessened their aggression in processing heading into the New Year's Day, its unlikely that they will be aggressive in buying come Thursday.
No comments:
Post a Comment