GENERAL COMMENTS
Before the noon hour Tuesday, it looked as though all the livestock markets were going to close lower as the contracts couldn't seem to gain any support and as the corn complex was weighing heavily on all the markets. However, as the day traded into Tuesday's afternoon, the live cattle market grew stronger and was able to close fully higher despite the corn market's surge. The lean hog and feeder cattle markets both closed mostly lower. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.55 with a weighted average of $71.17 on 9,253 head. The Dow Jones Industrial Average is up 95.00 points.
LIVE CATTLE:
The live cattle complex performed exceptionally well throughout Tuesday's afternoon as the market originally looked like it was going to follow in line with the rest of the livestock contracts and close lower, but support was found in the complex ahead of the market's closing bell. February live cattle closed $0.37 higher at $157.85, April live cattle closed $0.75 higher at $161.30 and June live cattle closed $0.55 higher at $157.85. It's important to note that the spot April contract has been able to close above its 40-day moving average for two consecutive days in a row now. Given that the market faced some pressure from the corn complex and that the cash cattle market lent no support as it hasn't traded yet, it's evident that traders are regaining their footing in the market. It's unlikely that any cash cattle trade will develop on Wednesday as feedlots are going to try to advance the cash market and know that waiting the week out favors their position. If the board can indeed trade higher again on Wednesday, however, that will likely give feedlots more confidence and help them keep the market at least steady. Asking prices in the South are noted at $157, but are still undeveloped in the North.
Tuesday's slaughter is estimated at 127,000 head, 1,000 head less than a week ago and 6,000 head more than a year ago.
Boxed beef prices closed lower: choice down $1.80 ($269.64) and select down $2.10 ($252.39) with a movement of 138 loads (87.63 loads of choice, 22.97 loads of select, 12.71 loads of trim and 14.40 loads of ground beef). The choice/select spread now sits at $17.25.
WEDNESDAY'S CATTLE CALL: Steady to $1.00 higher. It's unlikely that any cash cattle trade develops on Wednesday as feedlots are going to try to advance the market to the best of their abilities. Trade will likely develop on Thursday or even potentially on Friday.
FEEDER CATTLE:
The feeder cattle contracts had a mixed day as support throughout the countryside was strong, but the contracts couldn't look past the corn market's rally, which led the feeder cattle contracts to a lower close. The corn complex jumped higher as it welcomed a new export sale of 130,000 mt and corn exports thus far have been weak for the 2023 calendar year. If the corn complex doesn't pose much threat come Wednesday, the feeder cattle market may be able to trade higher as the live cattle complex grew stronger throughout Tuesday's market and could trade higher into Wednesday as well. March feeders closed $0.32 higher at $183.60, April feeders closed steady at $187.92 and May feeders closed $0.27 lower at $191.97.
At Sioux Falls Regional Cattle Auction in Worthing, South Dakota, compared to last week, feeder steers sold steady to $3.00 higher with instances of $11.00 higher, expect the 900- to 950-pound steers which sold steady to $1.00 lower. Feeder heifers traded steady to $2.00 higher with instances of $7.00 stronger. Several farmer feeders were noted to be at the sale. Slaughter cows and bulls sold steady to $2.00 lower. Feeder cattle supply over 600 pounds was 71%. The CME Feeder Cattle Index for Jan. 23: down $0.16, $177.53.
LEAN HOGS:
It was a mixed day for the lean hog complex as it struggled technically and saw all of its contracts close lower, and even though pork cutout values closed lower too, the market did see slightly higher prices in the cash sector. The lean hog contracts, much like the feeder cattle contracts, were unable to gain any momentum throughout Tuesday's market as the complex eyed and feared the $0.10 advance in the nearby corn contracts. The spot April contract was able to close above its support plane, however. February lean hogs closed $.47 lower at $77.10, April lean hogs closed $0.07 lower at $85.37 and June lean hogs closed $0.67 lower at $101.67. The cash hog market saw 9,253 head trade for a weighted average of price of $71.17, which was $0.55 higher than the week before. Pork cutouts totaled 360.27 loads with 321.27 loads of pork cuts and 38.99 loads of trim. Pork cutout values: down $0.86, $80.06. Tuesday's slaughter is estimated at 484,000 head, 3,000 head less than a week ago and 13,000 head more than a year ago. The CME Lean Hog Index for Jan. 20: down $0.52, $72.13.
WEDNESDAY'S HOG CALL: Slightly higher. Packers are appearing short bought on hogs and it's likely that they'll be active again in Wednesday's market.
No comments:
Post a Comment