GENERAL COMMENTS:
St. Patrick's Day may be extending some support, as both the live cattle and lean hog contracts trade fully higher and the feeder cattle contracts trade mixed. The cash cattle market has yet to see significant trade, and hopefully feedlots will deny early bids and push the week's business out until later in the week when prices could be better. May corn is up 2 1/2 cents per bushel and May soybean meal is down $2.40. The Dow Jones Industrial Average is up 107.04 points and NASDAQ is down 146.37 points.
LIVE CATTLE
The live cattle contracts are starting to feel the luck of the Irish as the complex turns mostly green and absorbs the market's interest. April live cattle are up $0.80 at $119.00, June live cattle are up $0.27 at $121.72 and August live cattle are steady at $121.00. If the market can keep traders interested and share some of this positive energy with the cash cattle market -- then progress has been made! There have been a few scattered deals reported in parts of Nebraska and Kansas for $114, but mostly the market is still sitting patiently, waiting for higher bids to come in. Asking prices in the South have been noted at $116 while asking prices in the North are yet to be known. If the market's trade can be patient, and if the board can continue to trade positively, this week may have a shot at seeing higher cash cattle trade if feedlots don't sell out early.
The Fed Cattle Exchange Auction listed a total of 2,374 head, of which 894 actually sold, 1,480 head were listed as unsold, as they did not meet the reserve prices, that ranged from $114 to $115 (1 lot heiferettes $95). Opening prices ranged from $112 to $113 (1 lot heiferettes $90), high bids ranged from $113 to $114.50. The state-by-state breakdown looks like this: Kansas 152 total head, all of which went unsold; Nebraska 667 total head, with 234 head sold at $114.50, 433 head went unsold; Texas 1,655 total head, with 1,555 head sold at $114.25-$114.50, 895 head went unsold.
Boxed beef prices are mixed: choice up $1.87 ($228.80) and select down $0.08 ($218.69) with a movement of 62 loads (42.28 loads of choice, 11.45 loads of select, zero loads of trim and 8.11 loads of ground beef).
FEEDER CATTLE
The feeder cattle contracts aren't willing to step out on a limb and trade higher, even though the corn market is once again stepping aside and giving the market the chance. The nearby feeder cattle contracts are met with moderate demand, but the deferred contracts are still leery of the bigger cattle market and then uncertainty of the cash cattle market. March feeders are up $0.47 at $137.05, April feeders are up $0.72 at $144.05 and May feeders are up $0.05 at $149.77. If, by later in the week, the cash cattle market can see some improvement and the corn market continues to trade steady to somewhat weaker, the feeder cattle complex may then have the markets full support to trade higher.
LEAN HOGS
The lean hog market keeps on doing what it's been known to do best as of late, and that's trading higher! April lean hogs are steady at $92.90, June lean hogs are up $0.22 at $101.70 and July lean hogs are up $0.57 at $101.57. It's hard to believe that we are seeing both the June and July hog contracts trade above $100, but when supplies are tightening and demand is strong -- prices soar! Monitoring every little essence of the market is crucial right now as any small shift could rattle the complex and change the market's current trajectory. Be sure to closely watch the afternoon's pork cutout close, slaughter volume and packer's interest in the cash market.
The projected lean hog index for March 16: is up $0.65 at $90.56, and the actual index for March 15 is up $0.56 at $89.91. Hog prices on the National Direct Morning Hog Report are up $1.15 at $87.01, ranging from $84.00 to $92.00 on 4,440 head and a five-day rolling average of $85.13. Pork cutouts total 185.35 loads with 156.71 loads of pork cuts and 28.63 loads of trim. Pork cutout values: up $1.91, $102.81.
No comments:
Post a Comment