GENERAL COMMENTS:
The live cattle market is trading higher as the complex notes the slight uptick in boxed beef prices and hopes that feedlots continue to be bold in their quest for higher prices. The lean hog complex is trading lower as it received a lukewarm export report but both cash prices and pork cutout values are higher at noon. March corn is down 3 3/4 cents per bushel and March soybean meal is up $9.10. The Dow Jones Industrial Average is up 107.05 points.
LIVE CATTLE:
The live cattle complex is trading higher as the market likes seeing the higher uptick in boxed beef prices and appreciates the day's lukewarm export report, although the market wishes it would have seen a more aggressive finding. Nevertheless, as we enter Thursday's noon hour and still have not seen any movement in the cash market, feedlots are dead set on advancing this market while packers hoping that this week's market only moves by a $1.00 or $2.00. Asking prices remain firm in the South at $161 to $162, and in the North at $254 plus. Trade could begin to be seen this afternoon or it could be pushed out until Friday. Time will tell, but either way, packers are in need of cattle as they've only bought a handful of cattle over the last couple of weeks.
Beef net sales of 16,400 mt for 2023 were primarily for South Korea (4,400 mt), Japan (3,500 mt) and Mexico (2,700 mt).
Boxed beef prices are higher: choice up $2.51 ($269.71) and select up $0.90 ($254.06) with a movement of 56 loads (38.69 loads of choice, 7.07 loads of select, zero loads of trim and 10.68 loads of ground beef).
FEEDER CATTLE:
With corn trading slightly lower and the live cattle contracts trading higher, a near perfect storm has overcome the feeder cattle market as it's seeing ample technical and fundamental support. What I've been continuing to watch relentlessly in the feeder cattle market is the CME Feeder Cattle Index and I'm encouraged to see that it has continued to trade above $180.00. Thankfully, the momentum in the cash cattle complex has trickled its way down into the feeder cattle market, and currently buyers are being aggressive at sales in the countryside as they know that the availability of feeder cattle is just going to become thinner and thinner as the year presses on. March feeders are up $0.67 at $187.12, April feeders are up $0.55 at $191.27 and May feeders are up $0.80 at $195.22.
LEAN HOGS:
The lean hog complex is stomping its way through Thursday's market as traders continue to push the market sideways. April lean hogs are down $0.70 at $83.37, June lean hogs are down $0.67 at $101.32 and July lean hogs are down $0.60 at $103.52. Thursday's export report was lukewarm for the hog complex as it was nice to see China as an active buyer in the market but ideally the complex would have liked to see more product moved. It is encouraging, however, that both cash prices and pork cutouts are higher a midday. Hopefully those markets will keep their momentum through closing.
Pork net sales of 28,800 mt for 2023 were primarily for Mexico (12,700 mt), South Korea (4,700 mt) and China (3,400 mt).
The projected lean hog index for Feb. 8 is up $0.05 at $73.80 and the actual index for Feb. 7 is up $0.24 at $73.75. Hog prices are higher on the Daily Direct Morning Hog Report, up $1.29 with a weighted average of $76.74, ranging from $66.00 to $80.00 on 6,515 head and a five-day rolling average of $74.30. Pork cutouts total 128.22 loads with 110.25 loads of pork cuts and 17.97 loads of trim. Pork cutout values: up $3.09, $82.38.
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