GENERAL COMMENTS:
The livestock complex fell victim to yet another day of lower closes thanks to more developments seen in the HPAI virus story. A little cash cattle trade was reported in the South at $182, which is steady with last week's weighted average. Hog prices closed lower on the Daily Direct Afternoon hog report, down $0.36 with a weighted average of $91.49 on 4,288 hogs. May corn closed down 5 1/4 at $4.378 and July soybean meal closed up $3.10 at $349.2. The Dow Jones Industrial Average is down 42.77 at 38,460.92.
Wednesday's Cold Storage Report shared that total red meat supplies in freezers were down 1% from the previous month and down 12% from a year ago. Total pounds of beef in freezers was down 3% from the previous month and down 10% from a year ago. Frozen pork supplies were up 1% from the previous month but down 13% from last year. Stocks of pork bellies were up 18% from last month but down 2% from a year ago.
LIVE CATTLE:
The live cattle complex fell short of its desire to close higher as the market was once again consumed by news pertaining to the HPAI virus. Midmorning news was shared that traces of the HPAI virus had been found in milk, but the CDC still believes that the virus's risk to humans remains low. Regardless, the USDA announced that it would begin requiring mandatory testing for the interstate movement of dairy cattle, effective beginning April 29th. Chris Clayton, DTN's Senior Policy Editor covered the story in full, and it can be accessed here:
The cattle complex's weaker close was largely due to the fact that specs reacted emotionally to the news and decided to more or less, dump and run from the cattle market. June live cattle closed $1.90 lower at $175.25, August live cattle closed $2.13 lower at $173.37 and October live cattle closed $1.72 lower at $177.65. It was encouraging however to see that some light cash cattle trade was reported in the South at $182 which is fully steady with last week's weighted average. Given the reactionary behavior seen in the futures complex, I was worried that the cash cattle market would see the same type of pressure, but feedlot managers kept their wits about them and were able to hold prices steady -- an accomplishment in today's frazzled marketplace. Asking prices for cattle left on showlists remain firm at $185 to $186 and are still not established in the North.
Wednesday's slaughter is estimated at 125,000 head, 1,000 head more than a week ago and 2,000 head more than a year ago.
Boxed beef prices closed lower: choice down $1.66 ($295.74) and select down $2.34 ($290.42) with a movement of 148.06 loads (92.41 loads of choice, 30.42 loads of select, 7.88 loads of trim and 17.35 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady. Given that prices are trending steady early in the week in the South, it's likely that Northern feedlots aim to accomplish the same success.
FEEDER CATTLE:
The feeder cattle complex closed lower as external pressures were simply too much for the market to bear through the day's end. May feeders closed $1.95 lower at $244.15, August feeders closed $3.10 lower at $256.30 and September feeders closed $2.97 lower at $257.50. Today's downward ascend was driven by more news surrounding the HPAI virus which continues to be a thorn in the cattle complex's side. At Winter Livestock Auction in La Junta, Colorado, compared to last week feeder steers sold mostly $5.00 to $15.00 higher across all weight groups. Feeder heifers traded unevenly steady. Slaughter cows sold $1.00 to $2.00 higher and slaughter bulls sold $4.00 lower. Feeder cattle supply over 600 pounds was 54%. The CME Feeder Cattle Index for April 23: down $0.58, $242.64.
LEAN HOGS:
Even the energy was sucked out of the lean hog complex through Wednesday's trade as its market closed lower alongside the cattle contracts. June lean hogs closed $0.50 lower at $107.45, July lean hogs closed $0.10 lower at $109.85 and August lean hogs closed $0.05 higher at $107.15. Heading into Thursday's trade the market is desperately hoping to see a fruitful export report, which will undoubtedly affect which way the market trades on Thursday. Thankfully pork cutout values did close slightly higher Thursday afternoon as the wild price swings in the belly seemed to subside. Pork Cutouts totaled 233.33 loads with 212.57 loads of pork cuts and 20.76 loads of trim. Pork cutout values are up $0.38 at $97.27. Wednesday's hog slaughter is estimated at 483,000 head, 3,000 head less than a week ago and 11,000 head more than a year ago. The CME Lean Hog Index for April 22: up $0.14, $91.45.
THURSDAY'S HOG CALL: Higher. It's likely that cash hog prices will be higher on Thursday as packers haven't participated much in this week's cash sector and will need to do so ahead of the week's end.
No comments:
Post a Comment