GENERAL COMMENTS:
After Thursday's blood bath, the livestock contracts were sheepish in how they approached Friday's market, but upon thorough evaluation, traders have deemed it safe and are now letting the feeder cattle and lean hog contracts trade slightly higher, but the live cattle contracts aren't as confident. July corn is down 11 3/4 cents per bushel and July soybean meal is up $9.50. The Dow Jones Industrial Average is up 507.86 points.
LIVE CATTLE:
Little interest in the cash cattle market, immense pressure throughout the futures market and a wavering consumer base (when historically prices would be rallying higher for grilling weather) all has the live cattle complex holding its breath. With its counterparts, the feeder cattle and lean hog contracts, are trading higher the live cattle market isn't as sure and continues to trade mostly lower. June live cattle are up $0.32 at $131.97, August live cattle are down $0.05 at $132.72 and October live cattle are down $0.37 at $139.47. The cash cattle market hasn't seen any renewed interest and it's looking like the bulk of this week's trade is done with. This week's movement hasn't amounted to much compared to the last three weeks' worth of trade, and all eyes will be looking for Monday's report to see exactly how many cattle traded. Throughout the week, Southern live cattle have traded for $140 and Northern dressed cattle for $230.
Boxed beef prices are mixed: choice up $1.23 ($258.43) and select down $0.52 ($243.84) with a movement of 59 loads (31.52 loads of choice
FEEDER CATTLE:
The feeder cattle contracts are feeling confident in their upward move as the corn market is chopping sideways with a $0.05 to $0.08 regression in its nearby contracts. Sales throughout the countryside have been thin as it's too soon for new-crop calves to be working their way into the market, and largely most of last year's calves have already traded. Come the first part of June, the market will see some of the industry's biggest auction houses hosting their early summertime sales and we'll begin to get a better understanding of what feeder cattle prices are going to bring this fall. May feeders are up $0.90 at $157.77, August feeders are up $1.35 at $167.87 and September feeders are up $0.87 at $170.55.
LEAN HOGS:
After a less than desirable week, the lean hog complex is seeing support work its way into its nearby contracts, but the deferred contracts are still traipsing lower after noting the expectation of larger supplies come 2023. June lean hogs are up $2.45 at $99.92, July lean hogs are up $2.75 at $100.62 and August lean hogs are up $2.07 at $101.05. As the market continues to yearn for a clearer understanding of what the near-term market is supposed to be, it's likely that Friday's trade keeps a higher tone through the day's end but then will search for reassurance again next week.
The projected lean hog index for May 12 is up $0.55 at $100.49, and the actual index for May 11 is down $0.22 at $101.04. Hog prices are lower on the Daily Direct Morning Hog Report, down $3.68 with a weighted average $101.27, ranging from $98.00 to $107.75 on 2,758 head and a five-day rolling average of $104.93. Pork cutouts total 175.87 loads with 163.74 loads of pork cuts and 12.13 loads of trim. Pork cutout values: down $0.39, $98.21.
No comments:
Post a Comment