GENERAL COMMENTS:
The livestock complex is trading higher into Tuesday afternoon as traders are seeing enough fundamental support to justify higher trade. The biggest, exciting factors affecting the market are midday boxed beef prices are higher and the feeder cattle complex is boldly leading the charge to higher trade in the cattle complex. July corn is down 1 1/4 cents per bushel and July soybean meal is down $2.90. The Dow Jones Industrial Average is up 58.95 points.
LIVE CATTLE:
With the rallying support of the feeder cattle complex and stronger midday boxed beef prices, the live cattle complex is back to trading higher. June live cattle are up $1.60 at $178.57, August live cattle are up $1.77 at $176.17 and October live cattle are up $1.50 at $179.37. It's impressive that the spot June contract is trading above the market's 40-day moving average. If it is able to close at this level, it will be positioned to either close at the market's current resistance point or slightly below. And so long as boxed beef demand remains stable and supportive, traders may deem there's enough support in the complex to challenge that resistance threshold. No business has developed yet in the cash cattle market and it's not likely trade will develop until after Wednesday at some point.
Boxed beef prices are higher: choice up $1.60 ($300.36) and select up $3.16 ($292.91) with a movement of 53 loads (25.99 loads of choice, 11.47 loads of select, zero loads of trim and 15.55 loads of ground beef).
FEEDER CATTLE:
Traders are relieved to see corn prices trading mostly steady as this leaves room and opportunity for the feeder cattle complex to again trade higher. All eyes are currently on boxed beef prices as the industry desperately hopes to see interest increase as this is historically when boxed beef demand is extremely strong. Either way, as the old saying goes, "Feeders are the leaders," and it's been that way in the market's current move -- so seeing most of the feeder cattle contracts trade higher is encouraging to the entire cattle complex. May feeders are up $1.85 at $243.25, August feeders are up $2.52 at $255.40 and September feeders are up $2.52 at $256.40.
LEAN HOGS:
The lean hog complex is trading slightly higher as traders took note of Monday afternoon's higher carcass price and hope consumer support will again be found in this afternoon's closing report. June lean hogs are up $0.17 at $98.35, July lean hogs are up $0.52 at $102.67 and August lean hogs are up $0.42 at $101.62. There have been over 2,000 hogs traded thus far Tuesday and it's likely packer interest will improve as the day trades on.
The projected CME Lean Hog Index for 5/6/2024 is up $0.24 at $91.03 and the actual index for 5/3/2024 is down $0.16 at $90.80. Hog prices on the Daily Direct Morning Hog Report average $94.18, ranging from $86.00 to $95.00 on 2,612 head and a five-day rolling average of $91.62. Pork cutouts total 161.24 loads with 141.99 loads of pork cuts and 19.25 loads of trim. Pork cutout values: down $1.96, $97.54.
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