GENERAL COMMENTS:
The livestock complex has finally come into some support and traders are willingly advancing all three of the markets into Friday's noon hour. It will be important to look for Friday afternoon's Cattle on Feed report as its placement data will likely affect trade early next week. December corn is up 5 1/2 cents per bushel and December soybean meal is up $6.30. The Dow Jones Industrial Average is up 47.39 points.
LIVE CATTLE:
Even though the cash cattle market traded about $1.00 softer this week, traders have sprung into action in Friday's trade and are again trading the complex mildly higher. The combination of stronger boxed beef prices mixed with the anticipation that Friday afternoon's Cattle on Feed report will show lighter on feed numbers and lighter placements are all boding well with the market. No new cash cattle trade has been noted, and besides some clean up business here and there it looks like the week's trade could be done with. Thus far throughout the week, Southern live cattle traded at $177 to mostly $179, which is $1.00 softer than last week's weighted average. Northern dressed cattle traded anywhere from $290 to $298, but mostly at $294 to $295 which is steady to $1.00 lower. August live cattle are up $0.70 at $178.75, October live cattle are up $0.80 at $179.12 and December live cattle are up $0.80 at $183.32.
Boxed beef prices are higher: choice up $1.56 ($315.70) and select up $1.49 ($287.75) with a movement of 63 loads (45.96 loads of choice, 7.69 loads of select, zero loads of trim and 9.00 loads of ground beef).
FEEDER CATTLE:
Oddly enough, even with the nearby corn contracts trading $0.05 to $0.06 higher and there being another Cattle on Feed report released Friday afternoon, the feeder cattle complex is trading higher. August feeders are up $1.50 at $245.77, September feeders are up $0.95 at $248.10 and October feeders are up $1.10 at $250.42. What will be extremely insightful and market-influencing, is how the placement numbers fall Friday afternoon on the COF report. With the last two COF reports showing greater year-over-year placements, Friday's report is expected to show lighter placements, which would lend support to the market.
LEAN HOGS:
Talk about a wild Friday for the lean hog market! With the nearby contracts sporting advancements as much as $3.00 higher, the lean hog complex has come into some support and traders aren't holding back ahead of the weekend. Given what the market has told us fundamentally this past week, Friday's power and drive is coming from a technical push as the cash market hasn't seen much interest and as pork cutout values are lower. Whatever the rhyme or reason may be, pork producers are thankful for the support. October lean hogs are up $3.02 at $82.22, December lean hogs are up $2.35 at $74.35 and February lean hogs are up $2.05 at $78.37.
The projected lean hog index for Aug. 17 is down $0.71 at $99.61 and the actual index for Aug. 16 is down $0.71 at $100.32. Hog prices are unavailable on the Daily Direct Morning Hog Report due to packer submission issues. Pork cutouts total 245.05 loads with 233.18 loads of pork cuts and 11.87 loads of trim. Pork cutout values: down $1.57, $106.22.
No comments:
Post a Comment