GENERAL COMMENTS:
So far Wednesday has been good to the livestock complex as technically the futures continue to be met with ample trader interest and fundamentally the cattle market is seeing buyers may be pushed into paying higher prices this week. There's yet to be any cash cattle trade develop, but packers have started to show interest on cattle in the North. May corn is down 1/2 cent per bushel and May soybean meal is up $0.70. The Dow Jones Industrial Average is up 320.90 points and NASDAQ is down 56.54 points.
LIVE CATTLE:
The cash cattle market has seen some bids trickle in at $114 live and $182 dressed in Nebraska, but feedlots aren't overly keen about accepting steady bids this early in the week. With boxed beef prices seeing strong demand this week and the futures market favoring higher prices, feedlots are optimistic about moving the market higher again this week. Asking prices in the South have been noted at $116 to $117 and asking prices in the North are pinned at $185. Trade isn't expected to really begin until late Wednesday afternoon or Thursday. The live cattle contracts are trading modestly higher like the rest of the livestock sector as traders are seeing optimism build. April live cattle are steady at $119.12, June live cattle are up $0.20 at $120.27 and August live cattle are up $0.37 at $119.47.
The Fed Cattle Exchange Auction listed a total of 2,633 head, of which 1,550 actually sold; 1,083 head were listed as unsold as they did not meet the reserve prices which ranged from $115 to $116. Opening prices ranged from $112 to $116, high bids ranged from $114.25 to $116. The state-by-state breakdown looks like this: Texas 1,144 total head, with 173 head sold at $115.00, 971 head went unsold; Kansas 112 total head, all of which went unsold; Nebraska 1,377 total head, all sold at $116.00.
Boxed beef prices are mixed: choice up $1.12 ($235.11) and select down $1.64 ($223.59) with a movement of 74 loads (35.40 loads of choice, 11.30 loads of select, 13.33 loads of trim ad 14.35 loads of ground beef).
FEEDER CATTLE:
Feeder cattle contracts could get used to the corn market trading lower, which consequently gives them the opportunity to trade higher! April feeders are up $2.35 at $142.10, May feeders are up $1.60 at $147.07 and August feeders are up $0.87 at $156.45. As the March contract prepares to expire Thursday, March 25, the market's attention is funneling into the April and May contracts. Thankfully this week has been widely supported as the live cattle contracts are trading modestly higher and the cash cattle market is itchy at the opportunity to see the cash market make advancements again -- all of which will help create more opportunity throughout the feeder cattle complex.
LEAN HOGS:
Cash prices may be a tick lower, but the nearby lean hog contracts and pork cutout values still look for bigger and better things throughout the lean hog market. April lean hogs are up $1.10 at $97.57, June lean hogs are up $0.87 at $102.12 and July lean hog are up $0.67 at $101.60. Thursday will be a big day for the lean hog market as the industry awaits another export report and the Quarterly Hogs and Pigs Report. So far the hype of Thursday's busy schedule has waned on the nearby contracts but the market's deferred contracts are somewhat leery and have pulled back from their forward progression.
The projected CME Lean Hog Index for 3/23/2021 is up $0.38 at $93.85 and the actual index for 3/22/2021 is up $0.76 at $93.47. Hog prices are lower on the National Direct Morning Hog Report, down $0.23 with a weighted average of $89.19, ranging from $88.00 to $96.00 on 7,165 head and a five-day rolling average of $87.85. Pork cutouts total 151.68 loads of pork cuts and 134.48 loads of trim. Pork cutout values: up $3.86, $109.64.
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