GENERAL COMMENTS:
The livestock complex is a mixed market heading into Friday's noon hour as the live cattle complex is seeing modest support technically, but cash cattle are trading lower. The lean hog market has regained momentum and its market is trading fully higher. July corn is up 2 cents per bushel and July soybean meal is up $5.50. The Dow Jones Industrial Average is up 218.95 points.
LIVE CATTLE:
Feedlots aimed for higher cash prices this week but weren't met by packers as cash prices have averaged $2.00 to $5.00 lower this week. Why are cash prices lower when demand is still strong and front-end supplies are tight? Week in and week out it seems as though the negotiations between packers and feedlots is a battle, and this week packers won. Now the real question heading into Monday's market is: did packers committee a lot of the cattle they bought this week to the deferred delivery option? If so, that's a kick in the teeth for feedlots that have cattle to market in the upcoming weeks and leaves them with an uphill battle to manage. Thus far this week, Southern live cattle have traded at $173 which is $2.00 lower than last week's weighted average and Northern dressed cattle have traded for $275 to $286, but mostly at $283 to $285, which is $3.00 to $5.00 lower than last week's weighted average.
Boxed beef prices are mixed: choice up $0.06 ($311.13) and select down $0.62 ($288.47) with a movement of 68 loads (39.83 loads of choice, 8.60 loads of select, 9.49 loads of trim and 10.15 loads of ground beef).
FEEDER CATTLE:
The feeder cattle contracts are in a tough position this morning as the corn complex is trading anywhere from $0.03 lower to $0.06 higher, and the live cattle contracts are trading mixed as well. The combination of mixed technical support amid a cash cattle market that's traded cattle for cheaper prices than last week's weighted averages in both the North and the South -- feeders are taking a cautious approach to the market this Friday. August feeders are down $0.52 at $231.05, September feeders are down $0.42 at $234.10 and October feeders are down $0.35 at $0.35 at $235.70.
LEAN HOGS:
It's been a terrific Friday for the lean hog market as pork cutout values are still seeing support, cash prices are again higher (which is bizarre given that it's a Friday) and the futures market is trading in accordance with the market's positive fundamentals. June lean hogs are up $0.87 at $91.00, July lean hogs are up $0.85 at $93.35 and August lean hogs are up $0.90 at $94.37. The market's support has largely been propelled by stronger interest from packers and by slightly better demand, so long as this trend continues into next week, the market stands an excellent chance at keeping with this upward trend.
The projected lean hog index for April 27 is up $0.20 at $at $71.49, and the actual index for April 26 is down $0.02 at $71.29. Hog prices are again higher on the Daily Direct Morning Hog Report, up $1.19 with a weighted average of $70.08, ranging from $67.00 to $77.00 on 5,145 head and a five-day rolling average of $67.66. Pork cutouts total 115.78 loads with 99.20 loads of pork cuts and 16.59 loads of trim. Pork cutout values: up $2.15, $80.96.
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