GENERAL COMMENTS:
The livestock complex is being supported Monday morning as all three of the markets are trading higher. No cash cattle business has developed yet and it's likely that any will ahead of Wednesday or even potentially Thursday. December corn is up 7 1/4 cents per bushel and December soybean meal is up $1.30. The Dow Jones Industrial Average is up 141.07 points.
LIVE CATTLE:
The live cattle complex is continuing to trade higher and is now on the verge of trading above $182, which has been a short-term resistance plane for the spot October contract. In the last week, traders have really seemed to find comfort in the strong fundamental position of the live cattle/cash cattle market. Traders know that fed cattle supplies are going be thin moving into the last two quarters of the year and, so long as beef demand doesn't plummet, strong cash cattle prices should be the theme of the marketplace. October live cattle are up $0.55 at $181.72, December live cattle are up $0.32 at $185.45 and February live cattle are up $0.45 at $189.65.
Last week, Northern cattle began to trade on Thursday, but the majority of the week's trade happened on Friday at $290 to $295, mostly at $292, which is roughly $3.00 lower than the previous week's weighted average. Southern live cattle didn't trade until Friday afternoon and their sales were marked at $178 to mostly $179, which is considered fully steady with the week before.
Boxed beef prices are lower: choice down $1.18 ($316.72) and select down $0.23 ($292.44) with a movement of 55 loads (21.61 loads of choice, 17.08 loads of select, 5.19 loads of trim and 10.62 loads of ground beef).
FEEDER CATTLE:
Up, up and away go the feeder cattle contracts into Monday's noon hour, as the nearby contracts are seeing easy $2.00 gains while the deferred contracts are trading at least $1.00 higher. Monday's move is rather impressive given the fact that the live cattle complex is only trading mildly higher and that the nearby corn contracts are trading $0.06 higher. Nevertheless, traders are electing to run the contracts higher into Monday's noon hour, and I can't help but believe that the scarcity of calves to be offered later this fall, amid excellent cash cattle prices, is fueling their drive. September feeders are up $2.22 at $253.57, October feeders are up $2.27 at $256.25 and November feeders are up $1.95 at $257.35.
LEAN HOGS:
The lean hog complex is higher as traders have an opportunity to support the market and not be in immediate danger of coming up against resistance pressure. October lean hogs are up $1.55 at $81.37, December lean hogs are up $1.10 at $73.12 and February lean hogs are up $0.80 at $77.17. Yes, pork cutout values are higher Monday morning, but after last Friday, with the belly dropping nearly $60.00, it would be even more concerning if prices were lower.
The projected lean hog index for Aug. 25 is down $1.29 at $93.89, and the actual index for Aug. 24 is down $1.22 at $95.18. Hog prices are unavailable at this time on the Daily Direct Morning Hog Report due to packer submission issues. Pork cutouts total 137.31 loads with 113.40 loads of pork cuts and 23.91 loads of trim. Pork cutout values: up $4.06, $97.48.
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