Trade in all three livestock markers is higher
at the noon hour as chatter that the U.S. and China are coming close to
wrapping up the first phase of trade negotiations circulates and spreads
optimism. December corn is up 2 1/2 cents per bushel, and December
soybean meal is up $0.20. The Dow Jones Industrial Average is up 188.71
points, and the NASDAQ is up 51.93 points.
LIVE CATTLE
Live cattle contracts are congruent at midday
Friday with all contracts up anywhere from $0.60 to $0.85. The exception
is spot October, which is up $1.42 at $111.85. December live cattle are
up $0.85 at $115.57 and carrying significantly more contracts than
earlier in the week. February live cattle are up $0.67 at $120.72. Live
trade has been reported in parts of Kansas and Nebraska Friday morning,
steady with Thursday's bump at $110, which is $2.00 higher than last
week's basis in the South. More trade is expected to develop after the
USDA Cattle on Feed report comes out this afternoon.
Midday boxed beef cutouts are higher: Choice is
up $0.35 ($225.97), and select is up $0.63 ($199.72). So far, midday
boxed beef movement has totaled only 49 loads (30.92 loads of choice
cuts, 8.73 loads of select cuts, 5.87 loads of trim and 3.29 loads of
ground beef).
FEEDER CATTLE
Friday's feeder cattle market is ticking higher
and higher, aiming to end the week on a green outlook. Nearby and
deferred contracts are both performing well, but more trader interest is
starting to levitate toward the January market. November feeder cattle
are up $1.40 at $145.57, and January feeder cattle are up $1.07 at
$141.67.
LEAN HOGS
After three consecutive days of mostly lower
trade, Friday's midday boost of positivity is just what the livestock
sector and hog producers needed. Even more so than the cattle contracts,
the lean hog market needs the first phase of the trade U.S.-China trade
deal finalized and set in place. Given that the domestic hog population
continues to grow and that China's need for pork protein is undeniable,
the answer lies in the midst of the two problematic situations. Lean
hog contracts are all up, with nearby markets slightly higher than
deferred. December lean hogs are up $1.47 at $66.02, and February lean
hogs are up $1.67 at $75.15.
The projected lean hog index for 10/23/19 is
down $0.23 at $65.49, and the lean hog index for 10/22/19 comes to
$65.72, down $0.25. Prices are lower on the National Direct Morning Hog
Report, down $0.64 with a weighted average of $53.14, ranging from
$49.00 to $53.99 on 5,147 hogs sold and a five-day rolling average of
$55.37. Pork cutouts totaled 194.78 loads with 182.01 loads of pork cuts
and 12.77 loads of trim. Pork cutouts values are substantially higher,
up $4.17 at $78.70.
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