GENERAL COMMENTS:
As we continue to wait for the cash cattle market to trade, both the live cattle and feeder cattle futures are trading lower as they're needing some fundamental support this week. Packer interest could improve later Thursday afternoon, but it looks like trade could be just as easily delayed until Friday. December corn is down 2 1/2 cents per bushel and December soybean meal is up $0.50. The Dow Jones Industrial Average is down 485.05 points.
Thursday's export report shared that beef net sales of 17,700 metric tons (mt) for 2024 were up 32% from the previous week and 35% from the prior four-week average. The three largest buyers were South Korea (5,300 mt), Japan (3,500 mt) and Mexico (2,100 mt). Pork net sales of 31,500 mt for 2024 were up 5% from the previous week but down 10% from the prior four-week average. The three largest buyers were Mexico (12,800 mt), Columbia (4,100 mt) and Canada (3,700 mt).
LIVE CATTLE:
As the market continues to sit and wait for cash cattle to trade, the live cattle contracts are again veering lower into Thursday's noon hour. August live cattle are down $1.97 at $185.15, October live cattle are down $2.82 at $183.92 and December live cattle are down $3.15 at $184.77. It's somewhat surprising to see that no bids have been offered, but packer interest could improve later this afternoon. Asking prices in the South are noted at $190 to $192, but still remain unestablished in the North. At this point, it's looking like trade could be delayed until Friday and that feedlot managers are strongly committed to holding the market at least steady.
Boxed beef prices are lower: choice down $1.34 ($313.43) select down $1.12 ($299.04) with a movement of 74 loads (38.50 loads of choice, 25.90 loads of select, 4.35 loads of trim and 5.22 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is having a mere meltdown as the market seems to be being immensely pressured technically from a lack of live cattle or cash cattle support. Thursday's downward trend seems incredibly overdone. Nonetheless, traders are continuing to push the feeder cattle contracts $4.00 to $5.75 lower into Thursday's noon hour. August feeders are down $4.52 at $252.72, September feeders are down $5.70 at $251.40 and October feeders are down $5.55 at $250.60. Currently the spot September contract is at the lowest level it's traded in the last two months.
LEAN HOGS:
The lean hog complex is keeping with its upward trend as the market is still far enough away from any technical resistance and is again well supported fundamentally by higher midday pork cutout values. August lean hogs are up $0.52 at $92.80, October lean hogs are up $0.87 at $76.80 and December lean hogs are up $0.37 at $69.10. It's not surprising to see today's cash hog market virtually untested as Wednesday's movement of over 12,000 head likely secured all the hogs packers needed from the cash sector this week.
The projected CME Lean Hog Index for 7/31/2024 is up $0.45 at $93.53, and the actual index for 7/30/2024 is up $0.49 at $93.08. Hog prices are lower on the Daily Direct Morning Hog Report, down $3.44 with a weighted average price of $82.34, ranging from $77.00 to $85.00 on 342 head and a five-day rolling average of $84.93. Pork cutouts total 144.34 loads with 134.84 loads of pork cuts and 9.49 loads of trim. Pork cutout values: up $2.16, $107.04.
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