GENERAL COMMENTS:
While cattle contracts are met with mixed signals from the futures market, lean hog contracts are happy to trade mostly higher and hope to keep the board's support, higher cash prices and strong cutout values through the afternoon. Feedlots and packers are still going rounds, as feedlots want more for their cattle and packers are trying to avoid paying their full asking prices this week at all costs. March corn is up 14 1/4 cents per bushel and March soybean meal is up $1.50. The Dow Jones Industrial Average is down 548.89 points and NASDAQ is down 221.52 points.
LIVE CATTLE:
The last time live cattle traded for more than $112 was over seven months ago; you better believe feedlots are ready to see stronger cash cattle prices and are willing to wait as long as it takes to see the market get where it needs to be. Live cattle futures have traded mixed throughout Friday morning. Earlier in the day, traders showed some slight interest in the complex. But, nearing the noon hour, most live cattle contracts are lower. February live cattle are down $0.17 at $115.82, April live cattle are up $0.27 at $112.97 and June live cattle are up $0.15 at $118.97. Feedlots would obviously like to see the board trade higher as Friday has rolled around and still the cash cattle market has only been lightly tested. But with boxed beef prices continuing to trail higher, feedlots have the support they need to summon stronger cash cattle prices.
Just minutes ago, there were a few cattle traded in Texas for $113, which is $3.00 higher than a week ago. But the rest of the countryside is still holding out. Asking prices in the South remain firm at $114 to $116 and $182-plus in the North.
In a couple hours the industry will get to see the latest Cattle Inventory Report. Bullish numbers are expected to be reported, which will add more gusto to both the live cattle and feeder cattle markets.
Boxed beef prices are higher: choice up $1.91 ($233.90) and select up $1.55 ($222.43) with a movement of 36 loads (19.99 loads of choice, 5.21 loads of select, 7.16 loads of trim and 3.79 loads of ground beef).
FEEDER CATTLE:
As the corn market scales to nearby gains -- 12 to 13 cents higher -- feeder cattle contracts readjusted to lower ranges, feeling the pressures of rising feed costs once again. March feeders are down $.10 at $139.70, April feeders are down $0.10 at $142.57 and May feeders are down $0.32 at $144.05. Auctions this week have started to see lighter sale receipts, which has helped take some of the supply pressure off the feeder cattle market. The large runs earlier in January were largely anticipated as a lot of producers carried calves over from earlier this fall. But having to market them in a short time period can create pressure in and of itself.
LEAN HOGS
The spot February lean hog contract continues to face opposition, but the rest of the nearby contracts are happy to trade modestly higher. This week's support from both the cash market and from pork cutout values has really helped keep the board from trailing lower as outside markets trade in uncertainty and the lean hog contracts face new highs and long-term resistance levels. February lean hogs are down $0.02 at $69.92, April lean hogs are up $0.77 at $77.15 and June lean hogs are up $0.97 at $87.82.
The projected lean hog index for 1/28/2021 is up $0.12 at $67.41 and the actual index for 1/27/2021 is up $0.33 at $67.29. Hog prices are higher on the National Direct Morning Hog Report, up $0.20 with a weighted average of $56.48, ranging from $53.00 to $56.63 on 3,370 head and a 5-day rolling average of $56.09. Pork cutouts total 148.80 loads with 137.44 loads of pork cuts and 11.36 loads of trim. Pork cutout values: up $2.11, $85.60.
No comments:
Post a Comment