GENERAL COMMENTS:
The livestock complex continues to trade mostly lower as the market is starving for some substantial fundamental support, especially from the cash cattle market. Still, no trade has developed and trade will likely be delayed until Thursday. May corn is down 2 cents per bushel and May soybean meal is up $4.50. The Dow Jones Industrial Average is up 10.49 points.
LIVE CATTLE:
With midday boxed beef prices lower and no developments in the cash cattle market, it's no surprise that traders are letting the live cattle contracts drift lower into Wednesday's noon hour. The market has grown comfortable trading in its sideways trading range as the cash cattle market is the driving force of the complex right now. Until something develops in this week's cash market, steady sideways trade should be expected.
April live cattle are down $0.40 at $187.60, June live cattle are down $0.40 at $184.60 and August live cattle are down $0.32 at $183.70. No trade has developed so far today in the cash cattle market as packers need cattle, but with feedlots' eyes on higher prices, packers are waiting the week out and hoping feedlot's eagerness will cease. Asking prices are still not known in the North, but Southern prices are firm at $188-plus. Trade will likely be delayed until Thursday or later.
Boxed beef prices are lower: Choice down $0.28 ($312.94) and select down $1.68 ($301.50) with a movement of 66 loads (36.71 loads of choice, 15.69 loads of select, 5.12 loads of trim and 8.71 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex continues to follow the lead of the live cattle market, trading lower into Wednesday's noon hour. More than anything, the feeder cattle complex is passing time until something develops in the cash cattle market.
If trade is indeed higher this week -- like it's expected to be -- the market could trade slightly higher throughout the futures complex. March feeders are down $0.40 at $250.27, April feeders are down $0.32 at $254.75 and May feeders are down $0.30 at $258.62.
LEAN HOGS:
The lean hog complex is trading mixed as the market's nearby contracts continue to trade lower, thanks to the resistance pressure the market can't seem to take out. Meanwhile, the market's deferred contracts continue to trade higher as there's hope that continued export demand will keep prices strong. April lean hogs are down $0.30 at $85.52, June lean hogs are down $0.12 at $101.12 and July lean hogs are up $0.02 at $103.97. The morning's cash hog movement has been moderate so far following Tuesday's large move.
The projected lean hog index for March 19 is up $0.39 at $83.21 and the actual index for March 18 is up $0.28 at $82.82. Hog prices are higher on the Daily Direct Morning Hog Report, up $1.11 with a weighted average price of $80.97, ranging from $75 to $83 on 2,724 head and a five-day rolling average of $80.22. Pork cutouts total 183.25 loads with 163.36 loads of pork cuts and 19.89 loads of trim. Pork cutout values: down $0.99, $92.38.
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