GENERAL COMMENTS:
Feeder cattle and lean hog contracts are trading higher into Friday's noon hour, but the live cattle contracts are hanging back as the market waits to see what cash cattle prices do later this afternoon. Bids are currently being offered in both regions, but feedlots are holding out for higher prices. September corn is down 17 1/4 cents per bushel and December soybean meal is up $0.20. The Dow Jones Industrial Average is up 28.84 points.
LIVE CATTLE:
The live cattle complex is still in a toe-tapping, time-passing holding period as largely the cash cattle market has yet to see any business develop. Yes, a few cattle sold live in western Nebraska at $198, which is $1.00 higher than last week's weighted average; but the rest of the market isn't sold on the idea of accepting packer offers just yet as they continue to hold out for more money. Bids of $188 live are currently offered in Kansas and Texas, and bids of $198 live and $312 dressed in Nebraska -- but feedlot managers are sticking to their guns and holding out for more money. Asking prices are noted at $192 to $195 in the South and $315 plus in the North. To feedlots' benefit, boxed beef prices are higher again, which could help incentivize packers to get busy in the cash market as beef prices are climbing and demand is strong. The live cattle contracts have flip-flopped between higher and lower prices multiple times Friday morning as they desperately want to see some cash cattle trade develop but nothing sizeable has shaken out of the market yet. August live cattle are down $0.60 at $185.85, October live cattle are down $0.52 at $185.22 and December live cattle are down $0.42 at $186.57.
Boxed beef prices are higher: choice up $2.40 ($325.73) and select up $2.11 ($304.81) with a movement of 56 loads (41.92 loads of choice, 7.91 loads of select, zero loads of trim and 6.47 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is trading fully higher into Friday's noon hour as the market is hopeful fed cash cattle prices will trade higher later Friday afternoon but is seeing ample support from its own cash market as just Thursday afternoon the CME Feeder Cattle Index closed at $259.04! The feeder cattle complex has chopped merely sideways this week as traders don't want to get too far ahead of the cash market, even though fundamentally the market continues to see dynamite support. August feeders are up $0.77 at $261.17, September feeders are up $0.65 at $262.04 and October feeders are up $0.70 at $262.50.
LEAN HOGS:
The lean hog complex has already moved past Thursday's neutral/somewhat bearish Quarterly Hogs and Pigs Report as the contracts are trading fully higher into Friday's noon hour. July lean hogs are up $0.15 at $89.60, August lean hogs are up $1.12 at $89.22 and October lean hogs are up $0.77 at $75.50. It's impressive that traders are moving the contracts given that pork cutout values are lower again this morning and that cash prices are slightly weaker too.
The projected CME Lean Hog Index is delayed from the source. Hog prices are lower on the Daily Direct Morning Hog report, down $2.13 with a weighted average price of $87.46, ranging from $85.00 to $89.00 on 1,383 head and a five-day rolling average of $87.94. Pork cutouts total 146.05 loads with 119.05 loads of pork cuts and 26.39 loads of trim. Pork cutout values: up $4.93, $99.83.
No comments:
Post a Comment