GENERAL COMMENTS:
The livestock complex had a mostly uneventful day as the market's focus was corn prices, although a little uncertainty still looms about the nation's economic state and how government will handle the debt ceiling. Wednesday could be more eventful as cash cattle bids could begin to develop. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.59 with a weighted average of $76.01 on 4,137 head. July corn is up 6 1/2 cents per bushel and July soybean meal is down $5.80. The Dow Jones Industrial Average is down 231.07 points.
LIVE CATTLE:
The live cattle market saw little action throughout the day as no cash cattle trade developed and as traders let the market sink lower as higher corn prices took center stage in their mind. Boxed beef prices are seeing some seasonal pressure but it's also encouraging to see that the day's movement totaled 126 loads as that indicates retailers are still needing product, they just want it at a slightly cheaper price. June live cattle closed $0.77 lower at $164.27, August live cattle closed $1.02 lower at $162.57 and October live cattle closed $0.97 lower at $167.17. No bids or asking prices were shared throughout the day as the cash market was extremely quiet. This week's trade could be delayed until Wednesday afternoon, or even potentially Thursday.
Tuesday's slaughter is estimated at 126,000 head, 1,000 head less than a week ago and steady with a year ago.
Boxed beef prices closed lower: choice down $3.16 ($300.74) and select down $2.15 ($281.28) with a movement of 126 loads (71.88 loads of choice, 28.78 loads of select, 13.94 loads of trim and 11.29 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady. This week's cash cattle market is a tough one to call. On one hand, feedlots possess every tool necessary to get at least steady price if not even add $1.00 or $2.00 to the market, but on the other hand, with the Memorial Day weekend nearing, packers will run lighter kills and need less cattle in the immediate future.
FEEDER CATTLE:
The feeder cattle market would love nothing more than for the chance to continue to trade higher as demand throughout the countryside is utterly amazing, but the corn market's pesky rally over the last two days has hindered the market's ability to do so. August feeders closed $1.42 lower at $233.47, September feeders closed $1.10 lower at $236.75 and October feeders closed $0.85 lower at $238.67. The feeder cattle market needs either the cash cattle complex to trade higher, which with lend it the support necessary to trade higher, or it needs the corn market to trade at least steady if not somewhat lower, at which point its market could again reflect the impeccable demand that the countryside is showcasing.
At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week, feeder steers sold $4.00 to $8.00 higher, with instances up to $10.00 higher. Feeder heifers sold $8.00 to $10.00 higher. Steer and heifer calves sold $4.00 higher. Feeder cattle supply over 600 pounds was 77%. The CME Feeder Cattle Index for May 22: up $2.06, $206.76.
LEAN HOGS:
The lean hog complex wasn't too keen on the idea of charging higher when corn prices rounded out the day $0.06 to $0.07 higher. June lean hogs closed $1.15 lower at $80.67, July lean hogs closed $1.17 lower at $80.97 and August lean hogs closed $0.12 higher at $80.42. It was somewhat surprising to see cash prices up slightly, but then again, with the recent decline in carcass weights, packers' short-bought position is seeming to catch them in a tighter position than what they had hoped for. Pork cutout values closed lower with the main culprit of the carcass's decline being the ham which fell $3.79 lower. It's tough saying what Wednesday's market will bring as the market would like to establish a bottom, but at this point it's hard pinpointing where that price point is. Pork cutouts totaled 317.84 loads with 293.00 loads of pork cuts and 24.84 loads of trim. Pork cutout values: down $1.27, $83.50. Tuesday's slaughter is estimated at 481,000 head, 11,000 head more than a week ago and 5,000 head more than year ago. The CME Lean Hog Index for May 19: up $0.44, $79.57.
WEDNEDSAY'S HOG CALL: Slightly higher. Even though pork cutout values closed lower, I'm led to believe that cash prices could be higher on Wednesday given that processing speeds have been vigorous and that packers seem to still be somewhat short bought.
No comments:
Post a Comment