GENERAL COMMENTS:
Even though the morning's export report was fruitful for the hog complex, the nearby lean hog contracts are continuing to trade lower. There's been a light trade of Northern live cattle sold for $190 (which is $2.00 lower than last week's weighted average) but all in all the cash cattle market hasn't seen much interest throughout the day. July corn is down 3/4 cent per bushel and July soybean meal is up $1.30. The Dow Jones Industrial Average is up 76.89 points.
Thursday's export report shared that beef net sales of 15,700 mt for 2024 were down 27% from the previous week and 12% from the prior four-week average. The three largest buyers were Japan (4,500 mt), China (2,800 mt) and Mexico (1,500 mt). Pork net sales of 44,400 mt for 2024 were up 69% from the previous week and from the four-week average. The three largest buyers were Mexico (23,200 mt), Australia (6,100 mt) and Japan (3,600 mt).
LIVE CATTLE:
With boxed beef prices slightly lower, cash cattle sales seeming to develop for steady to $2.00 lower and the morning's export report dismal, the live cattle complex is heading into Friday's noon hour slightly lower. June live cattle are down $1.22 at $181.32, August live cattle are down $1.82 at $177.97 and October live cattle are down $1.57 at $180.55. More than anything some of the market's vigor and excitement seems to have faded as the market's fundamentals are supportive but not etching out new all-time high weekly cash cattle prices kind of supportive. Only a light movement of trade has developed in Nebraska live at $190 which is $2.00 lower than last week's weighted average. No dressed sales have surfaced yet. On Thursday some live cattle sales were reported in the South at $186 which is $1.00 lower than last week's weighted average. For the cattle left to sell, asking prices are firm at $187 plus in the South and $303 to $305 in the North.
Boxed beef prices are lower: down $0.22 ($313.82) and select down $0.52 ($302.00) with a movement of 74 loads (51.75 loads of choice, 14.85 loads of select, zero loads of trim and 7.40 loads of ground beef).
FEEDER CATTLE:
The market's lingering, heavy technical pressure has continued to drive the feeder cattle contracts lower as the complex was disappointed to see cash cattle prices developing at weaker money. August feeders are down $2.97 at $256.07, September feeders are down $3.15 at $257.52 and October feeders are down $3.10 at $258.35. Even though feeder cattle demand remains incredibly high in the countryside thanks to limited supplies of feeders and calves (the CME feeder cattle index closed at $249.28 Thursday afternoon) the market seems more driven by technical pressure than anything at this point.
LEAN HOGS:
The nearby lean hog contracts are continuing to trade lower even though the morning's export report was strong, but the market's deferred contracts are trading slightly higher. The lean hog complex seems stuck in muddy water, wishing that demand was better, but unable to get the tug of support it needs to break free of the muck and lower trend. June lean hogs are up $0.05 at $94.05, July lean hogs are down $0.05 at $96.900 and August lean hogs are down $0.02 at $96.22. Traders seem comfortable trading the deferred contracts higher, but at this point, the nearby contracts seem committed to their lower/weaker trend and will likely continue with that pattern through the day's end.
Hog prices are lower on the Daily Direct Morning Hog Report, down $0.73 with a weighted average price of $86.93, ranging from $84.00 to $90.00 on 1,312 head and a five-day rolling average of $87.47. Pork cutouts total 202.74 loads with 181.09 loads of pork cuts and 21.65 loads of trim. Pork cutout values: up $1.94, $103.89.
No comments:
Post a Comment