GENERAL COMMENTS:
It was a good day for the livestock complex as all three of the markets closed higher, but heading into Wednesday's trade, traders will again need to see improvement in both boxed beef and pork prices. No cash cattle trade has developed yet.
Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.84 with a weighted average price of $93.25 on 13,968 head. July corn is down 2 cents per bushel and July soybean meal is down $4.40. The Dow Jones Industrial Average is up 31.99 points.
LIVE CATTLE:
It was a good day for the live cattle complex as the market saw support from traders and the market seemed to have awakened itself. Yes, boxed beef prices did close mixed (choice lower, select higher), but processing speeds are continuing to run aggressively and beef demand is expected to be stronger this week. No developments have been noted in the cash cattle market yet this week. Calling the direction in which the market will trade this week is a coin flip as one could argue that packers have protected themselves from having to buy more cattle at higher prices through the last two weeks' aggressive procurement. On the other hand, processing speeds are running faster and packers don't want to be in short supply when beef demand is seasonally the greatest.
June live cattle closed $0.65 higher at $177.62, August live cattle closed $1.10 higher at $175.52 and October live cattle closed $1.05 higher at $178.92. Tuesday's slaughter is estimated at 124,000 head -- steady from a week ago and 4,000 head less than a year ago.
Boxed beef prices closed mixed: choice down $0.27 ($298.49) and select up $2.59 ($292.34) with a movement of 100 loads (58.42 loads of choice, 20.96 loads of select, zero loads of trim and 20.76 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady. With packers having bought more than 90,000 head in each of the last two weeks' trade, they'll likely try to hold the cash market steady this week.
FEEDER CATTLE:
The feeder cattle complex continued to trade higher as the corn market's steady to $0.03 lower trade helped comfort traders and lend the complex enough support to rally through the day's end. The market's improved fundamentals throughout the entire cattle complex -- better boxed beef interest, steady throughput and higher cash cattle trade -- have all aided to the live cattle and feeder cattle market's upward quest.
May feeders closed $0.75 higher at $242.15, August feeders closed $1.55 higher at $254.42 and September feeders closed $1.57 higher at $255.45. At Torrington Livestock Auction in Torrington, Wyoming, compared to last week, feeder steers and heifers traded $3 to $8 higher. The start of green grass and timely moisture are keeping the market strong in that region. Feeder cattle supply over 600 pounds was 53%. The CME feeder cattle index May 6: down $0.52, $239.53.
LEAN HOGS:
The lean hog complex rounded out the day on a higher note as the market was well supported by the cash hog sector. With 13,968 head sold in Tuesday's cash market, traders were comforted by the cash market's trade and believed their aggressive buying early in the week due to demand will remain strong. The only hiccup in Tuesday's trade was pork cutout values rounded the day out lower. With the loin dropping $4.33, and the belly plummeting $9.01, the carcass price stood no chance of closing higher. Traders will be closely watching pork cutout values Wednesday and hope to see prices trend higher and signal that consumer support is evident.
June lean hogs closed $0.15 higher at $98.32, July lean hogs closed $0.35 higher at $102.50 and August lean hogs closed $0.62 higher at $101.82. Pork cutouts totaled 304.86 loads with 254.61 loads of pork cuts and 50.24 loads of trim. Pork cutout values: down $2.41, $97.09. Tuesday's slaughter is estimated at 478,000 head -- 4,000 head less than a week ago and 28,000 head more than a year ago. The CME lean hog index May 3: down $0.16, $90.80.
WEDNESDAY'S HOG CALL: Steady to somewhat lower. Given that Tuesday's movement in the cash hog market was far greater than expected, the rest of the week's purchases will likely be fewer.
No comments:
Post a Comment