GENERAL COMMENTS:
Friday morning, the livestock complex received another export report for the week, and it was thoroughly disappointed for both the hog and beef markets. The disappointing export report has since pushed the live cattle contracts into a lower trend and has even pushed the nearby lean hog contracts into trading slightly lower into Friday's afternoon. The feeder cattle market is too trending lower as it combats higher corn. December corn is up 19 1/4 cents per bushel and December soybean meal is up $8.70. The Dow Jones Industrial Average is up 19.64 points.
LIVE CATTLE:
The live cattle contracts seemed to shrug off the morning's lousy export report early on, but as the day has continues, the disappointing data has weighed heavily on the market and has begun to pull the contracts lower. August live cattle are down $0.65 at $133.87, October live cattle are down $0.70 at $139.15 and December live cattle are down $0.45 at $145.02. When Monday rolls around, cattlemen and feedlot managers will be anxious to see not only how many cattle were bought this past week, but also how many were bought with time.
Beef net sales of 11,000 mt for 2022 were down 35% from the previous week and 30% from the prior four-week average. The three largest buyers were Japan (6,300 mt), South Korea (1,700 mt) and Canada (1,100 mt).
Boxed beef prices are mixed: choice up $0.07 ($268.14) and select down $1.23 ($241.35) with a movement of 61 loads (33.98 loads of choice, 14.37 loads of select, 3.84 loads of trim and 8.64 loads of ground beef).
FEEDER CATTLE:
Just like that, the corn complex is back to rallying and the feeder cattle contracts are trending lower into Friday's afternoon. Largely, the grain market (especially the corn market) has turned into a weather market that's willing to shoot higher or tear lower with announcement of moisture. Some showers appear to be moving across the northern and eastern regions of the corn belt, but then the forecast turns dry, which could stress the new crop. Nevertheless, the downward trend in the feeder cattle market is solely based on the corn market's decision to trend higher as feeders are still being met with considerable demand in the countryside. August feeders are down $0.47 at $172.00, September feeders are down $0.95 at $175.05 and October feeders are down $1.10 at $178.22.
LEAN HOGS:
The nearby lean hog contracts are struggling to trade higher as the market was less than impressed with the morning's export report, coupled with the announcement that African swine fever has been detected and confirmed in domestic pigs in Lower Saxony, which is the largest pig producing area in the country and is only 20 kilometers from the Netherlands, reported pigs333. Thankfully, even though the nearby contracts are struggling through Friday's trade, pork cutout values are still trending higher and hog producers hope that they keep this elevated tone through closing to carry some supportive energy into next week's market.
Pork net sales of 31,200 mt for 2022 were down 3% from the previous week, but up 23% from the prior four-week average. The three largest buyers were Mexico (16,200 mt), China (11,400 mt) and Japan (1,100 mt).
The projected lean hog index is unavailable at this time. Hog prices are unavailable on the Daily Direct Morning Hog Report due to packer submission issues. Pork cutouts total 167.31 loads with 147.19 loads of pork cuts and 20.12 loads of trim. Pork cutout values: up $2.02, $114.21.
No comments:
Post a Comment