GENERAL COMMENTS:
The livestock complex is a mixed marketplace heading into Wednesday's noon hour as the cattle contracts are trading lower, but the lean hog complex pushes higher. The cash cattle market hasn't seen any trade develop yet this week, but packer interest is expected to increase later this afternoon although trade could still be delayed until Thursday. July corn is down 3/4 cent per bushel and July soybean meal is down $3.30. The Dow Jones Industrial Average is down 94.08 points.
LIVE CATTLE:
The live cattle market is seeming to be somewhat reactionary like the feeder cattle complex, but at this point, its market isn't enduring the same severity of pressure as traders hope that the cash cattle complex will lend some support either later Wednesday or Thursday. August live cattle are down $2.57 at $171.35, October live cattle are down $2.40 at $174.62 and December live cattle are down $2.25 at $178.25. The cash cattle market is painfully quiet as there has yet to be a single bid offered or asking price listed. Packers were extremely aggressive in last week's market as they bought close to 110,000 head, but with how strong beef demand is, one would suspect that they'd need to at least mildly participate in this week's cash market still to avoid becoming short bought again.
Boxed beef prices are mixed: choice up $0.72 ($338.71) and select down $1.15 ($308.33) with a movement of 52 loads (32.12 loads of choice, 9.63 loads of select, zero loads of trim and 9.94 loads of ground beef).
FEEDER CATTLE:
Even though the corn complex is trading slightly lower, the feeder cattle complex is acting frantically as it breaks $3.00 lower. The cash cattle market hasn't seen any business develop yet, which could help traders calm their nerves once trade does begin to develop. For the meantime, significant losses are dominating the feeder cattle complex despite there still being impeccable demand for feeders of weight groups. August feeders are down $3.65 at $236.80, September feeders are down $3.35 at $240.05 and October feeders are down $3.30 at $242.00.
LEAN HOGS:
The lean hog complex is trading oppositely of the cattle contracts as its market continues to work itself higher. The combination of stronger pork cutout values mixed with good demand in the cash sector was just the magic combination that traders apparently needed to see in order to justify trading the nearby contracts $1.00 to $2.00 higher. July lean hogs are up $2.47 at $93.07, August lean hogs are up $2.12 at $89.57 and October lean hogs are up $1.55 at $79.85. If fundamental support carries through the day's end, traders could potentially look to keep trading higher into Thursday's market but that would put the July contract at testing some resistance thresholds.
The projected lean hog index for June 13 is up $0.84 at $86.25, and the actual index for June 12 is up $0.68 at $85.41. Hog prices are higher on the Daily Direct Morning Hog Report, up $2.75 with a weighted average price of $94.13, ranging from $84.00 to $96.00 on 10,150 head and a five-day rolling average of $93.55. Pork cutouts total 172.66 loads with 147.84 loads of pork cuts and 24.81 loads of trim. Pork cutout values: up $1.64, $91.16.
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