GENERAL COMMENTS:
Rallying corn prices are once again pushing feeder cattle futures lower, but the live cattle contracts are trying to do their best to hold onto their stronger day. Meanwhile, the lean hog market is having another strong day as the complex pushes up and, in some cases, even past resistance levels as tight supplies continue to drive prices higher while demand is so strong. July corn is up 14 1/2 cents per bushel and July soybean meal is down $2.10. The Dow Jones Industrial Average is down 205.84 points and NASDAQ is down 53.97 points.
LIVE CATTLE:
Even though feeder cattle futures are growing squeamish over the corn market's modest rally, the live cattle contracts are trying to keep all the gains they've secured despite what corn is doing. June live cattle are up $0.15 at $116.20, August live cattle are up $0.80 at $118.20 and October live cattle are up $1.15 at $122.70. The contracts aren't anywhere near resistance levels and fundamental support continues to stem from excellent consumer demand. As long as traders are willing to see the day out, higher prices may hold through closing. The countryside has been mostly inactive; the majority of the week's business is already done. There's been a handful of cattle trade in Nebraska for $191, which is steady with the week. Some clean-up trade may develop Friday afternoon but it most likely won't be much.
Boxed beef prices are higher: choice up $2.61 ($296.37) and select up $3.88 ($283.67) with a movement of 56 loads (31.03 loads of choice, 7.46 loads of select, 9.78 loads of trim and 7.65 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures are doing their best to hold the gains they secured early in the day, but with the corn market now seeing upward of $0.13 advancements in the nearby contracts, leeriness is staring to grow amongst traders. May feeders are down $0.45 at $135.40, August feeders are down $0.72 at $149.15 and September feeders are down $0.20 at $151.42. Without the live cattle market to lend much support, the feeder cattle contracts are at the mercy of the pressure -- or lack of pressure -- the corn market puts on their complex until Friday's close.
LEAN HOGS:
Lean hog futures trailed lower throughout Thursday but Friday the contracts have shot back with vengeance. June lean hogs are up $2.82 at $109.55, July lean hogs are up $2.62 at $108.87 and August lean hogs are up $2.07 at $104.75. The contracts are pushing up against, and in some cases even past, resistance levels as fundamentals continue to show immense strength. With cash prices higher again, pork cutouts showing support and the slaughter levels maintaining, the market could easily carry this energy through closing.
The projected CME Lean Hog Index for 4/29/2021 is steady at $106.89, and the actual index for 4/28/2021 is down $0.12 at $106.89. Hog prices are higher on the National Direct Morning Hog Report, up $3.76 with a weighted average of $111.76, ranging from $106.82 to $120.00 on 3,920 head and a five-day rolling average of $109.59. Pork cutouts total 195.58 loads with 176.59 loads of pork cuts and 18.99 loads of trim. Pork cutout values: up $4.10, $111.65.
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