GENERAL COMMENTS:
Heading into Wednesday's market, all eyes will again be on the corn market as it will have a heavy influence on the livestock contract's direction, and cattlemen will be closely watching for any developments in the cash market. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $8.29 with a weighted average of $131.13 on 21,225 head. December corn is up 6 3/4 cents per bushel and December soybean meal is up $11.10. The Dow Jones Industrial Average is down 58.13 points.
LIVE CATTLE:
The board may have closed lower, but the market's fundamental cues are far too great to ignore. The most recent quality grade data released by USDA shared that the number of cattle grading choice/prime is close to the market's five-year average, indicating that feedlots are extremely current. Monday's data again reinstates the fact that cash cattle supplies are thinner than originally thought and that feedlots will likely be able to demand more money for their cattle again this week. It'd be a perfect world if boxed beef prices closed higher and the board closed stronger, but with limited numbers of cattle ready to be marketed, feedlots will likely capture more of the market's leverage again this week. August live cattle closed $0.37 lower at $137.97, October live cattle closed $1.05 lower at $143.17 and December live cattle closed $0.80 lower at $149.65. The market didn't see much interest arise in the cash market as feedlots are letting the week play out.
Tuesday's slaughter is estimated at 126,000 head, 2,000 head more than a week ago and 8,000 head more than year ago.
Boxed beef prices closed lower: choice down $1.51 ($264.73) and select down $1.16 ($237.00) with a movement of 154 loads (78.04 loads of choice, 30.65 loads of select, 12.13 loads of trim and 33.13 loads of ground beef).
WEDNESDAY'S CASH CATTLE CALL: $1.00 to $2.00 higher. This week's market possesses all the potential necessary to see higher cash cattle trade.
FEEDER CATTLE:
The feeder cattle market didn't stand a chance at trading higher as the corn market pushed green trade throughout the day. As the corn market closed $0.06 to $0.07 higher in its nearby contracts, the feeder cattle market's biggest worry is whether or not Tuesday's trade was the last of the corn market's upward trend for the week or just the beginning of its rally. Largely the feeder cattle market's fate this week will be at the mercy of the grain market. If cash cattle sell higher than the market will see strong accolades seep into its market from the live cattle/cash cattle realm, but the feeder cattle market's focus is on corn. August feeder cattle closed $2.47 lower at $178.80, September feeder cattle closed $3.15 lower at $182.50 and October feeder cattle closed $2.12 lower at $185.57. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week, feeder steers and calves both traded unevenly steady. Feeder heifers and heifer calves traded steady to $3.00 higher. The CME Feeder Cattle Index for Aug. 8: up $1.09, $176.40.
LEAN HOGS:
The lean hog market saw some pressure in its nearby contracts as the market watched the corn complex push higher prices throughout the day, but largely, the lean hog market's strength and stamina is still alive and well. On Monday, the October lean hog market closed above the market's resistance at $100.00 as it rallied on the support that drove prices higher late last week and on strong consumer demand and limited supplies of market ready cash hogs. Seeing Tuesday's October contract close below the $100.00 threshold isn't surprising given that corn presented the market with pressure, but it commendable that the contract only closed $0.40 below the plane. If traders would have been extremely concern with the market's move from Monday, they would have most likely crashed prices harder than what Tuesday's close saw. The cash hog market saw close to 21,000 head trade at $8.29 higher which again proves that market ready hogs are a in short, short supply. Pork cutouts total 321.32 loads with 305.70 loads of pork cuts and 15.62 loads of trim. Pork cutout values: down $0.21, $123.85. Tuesday's slaughter is estimated at 474,000 head, 2,000 head more than a week ago and 3,000 head more than a year ago. The CME Lean Hog Index for Aug. 5
TUESDAY'S CASH HOG CALL: Lower. It wouldn't be unlikely to see Wednesday's market move another sizeable volume of hogs, but prices will likely be a little lower.
No comments:
Post a Comment