GENERAL COMMENTS:
The livestock complex didn't improve much since the noon hour, as mostly the contracts closed lower. The only slight improvement came from the nearby live cattle contracts as traders took note that feedlots are mostly holding out for better money which could come Thursday. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.95 with a weighted average of $84.74 on 16,180 head. July corn is down 19 3/4 cents per bushel and July soybean meal is down $1.60. The Dow Jones Industrial Average is up 408.63 points.
LIVE CATTLE:
The live cattle complex gained momentum throughout Wednesday's trade as traders saw it promising that most feedlots continue to hold out for higher prices. Yes, boxed beef prices did close slightly lower, but that's not unusual for this time of year as, seasonally, prices usually endure some pressure. What traders continue to yearn for is strong trade from the cash cattle market. And even if feedlots are able to hold this week's market steady, it will be seen as an accomplishment as they successfully kept the market from eroding even further. Packer interest will likely be heightened come Thursday morning, and trade could begin to develop at any point. Asking prices remain firm at $172-plus in the South and $282-plus in the North. June live cattle closed $0.95 higher at $164.82, August live cattle closed $0.65 higher at $163.12 and October live cattle closed $0.15 higher at $167.07.
Wednesday's slaughter is estimated at 126,000 head, steady with a week ago and 3,000 head more than a year ago.
Boxed beef prices closed lower: choice down $1.32 ($298.15) and select down $1.46 ($282.89) with a movement of 120 loads (82.45 loads of choice, 18.89 loads of select, 8.20 loads of trim and 10.42 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady. It's promising that only a handful of cattle have traded at this point and it's looking like feedlots are going to hold out until packers offer at least steady prices.
FEEDER CATTLE:
The feeder cattle contracts closed lower as the complex was never able to gain footing in Wednesday's market despite the fact that corn prices closed $0.09 to $0.19 lower. Wednesday's market behavior was strange; even the live cattle market's nearby contracts closed slightly higher when feedlots chose to pass up the bids offered by packers. May feeders closed $1.15 lower at $204.55, August feeders closed $0.32 lower at $231.15 and September feeders closed $0.37 lower at $233.95. At Winter Livestock Auction in Dodge City, Kansas, compared to last week, feeder steers weighing 600 to 950 pounds sold $6.00 to $9.00 higher. There were enough steers weighing between 400 and 600 pounds to accurately find a market test, but higher trends were noted. Feeder heifers weighing 750 to 975 pounds sold steady. Heifers weighing 600 to 750 pounds sold $5.00 to $6.00 higher. Slaughter bulls and cows sold steady to $2.00 higher. The CME Feeder Cattle Index for May 16: up $0.11, $202.18.
LEAN HOGS:
The lean hog complex was never able to find the support it needed in order to gain stability and trade higher. The lean hog contracts took the biggest brunt of Wednesday's blow as its contracts closed anywhere from $1.00 to $3.00 lower. The cash market did indeed see another big volume of hogs traded, even following Tuesday's big sale and the big price hike seen in morning cash hog prices. Obviously, packers were caught being short bought and desperately needed the hogs. June lean hogs closed $2.32 lower at $84.87, July lean hogs closed $2.57 lower at $85.55 and August lean hogs closed $3.02 lower at $84.85. Pork cutouts totaled 305.53 loads with 255.89 loads of pork cuts and 49.64 loads of trim. Pork cutout values: down $0.68, $83.07. Wednesday's slaughter is estimated at 466,000 head - 1,000 head more than a week ago and 11,000 head more than a year ago. The CME Lean Hog Index for May 15: up $0.67, $77.17.
THURSDAY'S HOG CALL: Lower. Given that packers have now bought aggressively over the last two days, it's unlikely that they buy again on Thursday unless they still haven't fulfilled their needs.
No comments:
Post a Comment