GENERAL COMMENTS:
The livestock complex closed mixed Monday with cattle remaining hesitant throughout the day while the lean hog complex closed higher. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $2.25 with a weighted average price of $97.42 on 1,136 head. December corn is down 1 1/2 cents per bushel and December soybean meal is down $6.10. The Dow Jones Industrial Average is up 401.68 points.
LIVE CATTLE:
The live cattle complex closed lower as traders remained cautious about overly supporting the market ahead of seeing what this week's cash cattle trade amounts to. August live cattle closed $1.20 lower at $179.70, October live cattle closed $1.47 lower at $181.42 and December live cattle closed $1.27 lower at $185.77. No cash cattle trade developed throughout the day and it's not likely that any trade does develop ahead of Wednesday. But with packers able to buy some cattle for the deferred delivery commitment last week, this week's cash cattle market could remain steady as packers did gain some power with their ability to buy cattle with time. Showlists appear to be mixed this week, with there being fewer cattle available in Texas, Nebraska and Colorado, but slightly more available in Kansas. Monday's slaughter is estimated at 116,000 head, 8,000 head less than a week ago and 2,000 head less than a year ago.
Last week, Northern dressed cattle traded for $292 to $297, but mostly at $295, which is $1.50 higher than last week's weighted average. Southern live cattle traded for mostly $180, which is $1.00 higher than the previous week's weighted average. Last week's negotiated cash cattle trade totaled 82,805 head, with 74% (60,892 head) being committed to the nearby delivery, and the remaining 26% (21,913 head) being committed to the deferred delivery.
Boxed beef prices closed lower: choice down $0.30 ($301.49) and select down $1.47 ($275.01) with a movement of 91 loads (46.75 loads of choice, 24.87 loads of select, 6.72 loads of trim and 13.15 loads of ground beef).
TUESDAY'S CATTLE CALL: Steady. With packers able to buy cattle with time last week, cash cattle prices could remain steady this week.
FEEDER CATTLE:
Even though the nearby corn contracts closed lower, the feeder cattle contracts weren't able to muster up enough support to round out the day on a higher note. Hesitancy dominated the market throughout the day and after having ran the complex to a new contract high last Friday, traders weren't especially leery of overly supporting the market early in Monday's trade. August feeders closed $2.55 lower at $246.97, September feeders closed $2.57 higher at $250.87 and October feeders closed $2.52 lower at $252.90. At Joplin Regional Stockyards in Carthage, Missouri compared to last week and at their midsession point, both feeder steers and heifers were selling steady to $4.00 higher. Feeder cattle supply over 600 pounds was 49%. The CME Feeder Cattle Index for Aug. 4: down $0.64, $245.20.
LEAN HOGS:
The lean hog complex wasn't worried about much in Monday's market as traders deemed the corn market's slight regression as enough of a reason to push the contracts higher. It was helpful that pork cutout values also closed higher, which could lead to continued support in Tuesday's market. It was especially supportive that pork cutout values had a strong day where no cut skewed the carcass price as most of the cuts closed moderately higher. October lean hogs closed $1.75 higher at $84.82, December lean hogs closed $1.72 higher at $77.02 and February lean hogs closed $1.62 higher at $80.82. Pork cutouts totaled 250.33 loads with 203.35 loads of pork cuts and 46.98 loads of trim. Pork cutout values: up $1.62, $115.31. Monday's slaughter is estimated at 411,000 head, 65,000 head less than a week ago and 48,000 head less than a year ago. The CME Lean Hog Index for Aug. 3: up $0.39, $105.47.
TUESDAY'S HOG CALL: Higher. With pork cutout values being slightly higher, cash prices could be stronger on Tuesday.
No comments:
Post a Comment