GENERAL COMMENTS:
Both the live cattle and lean hog contracts successfully closed higher while the corn market's slight rally pressured the feeder cattle contracts just enough that they persuaded to trade lower. Hog prices closed lower on the National Direct Afternoon Hog Report, down $0.30 with a weighted average of $64.96 on 4,036 head. March corn is up 6 1/2 cents per bushel and March soybean meal is up $6.60. The Dow Jones Industrial Average is down 7.10 points and NASDAQ is up 53.24 points.
LIVE CATTLE:
For anyone who loves a suspenseful, last-second action type of movie, look no further than the cash cattle market and you'll be in for a show! Again this week -- and regardless of how trade pans out Friday -- we must commend feedlots for their boldness and ambition to vigorously move the cash cattle market higher. It's easy to trade cattle for steady prices early in the week, but it takes a committed cattleman to wait until Friday to try to get $1.00 to $2.00 higher, and chances are sometimes the market falls in your favor and sometimes it doesn't. February live cattle closed $0.80 lower at $115.32, April live cattle closed $0.42 higher at $123.12 and June live cattle closed $0.40 higher at $119.52. There was another light round of trade that developed Thursday afternoon with live cattle in the South bringing $114 and Northern cattle selling for $180. Seeing how few cattle have traded this week, and knowing that the plant in Dodge City is planning to be back up and operating next week, means that packers are going to want and need cattle. Asking prices are around $115 to $116 in the South and $185 in the North. More trade needs to develop before the week's end! Thursday's slaughter is estimated at 116,000 head, steady with a week ago and 7,000 head less than a year ago.
Thursday's actual slaughter data shared exciting news for steer carcass weights. For the week ending Jan. 30, steers averaged 920 pounds (down 6 pounds from the previous week) and heifers averaged 853 pounds (up 2 pounds from the previous week).
Beef net sales of 17,500 mt reported for 2021, increases were primarily for Japan (5,100 mt, including decreases of 500 mt), South Korea (4,300 mt, including decreases of 500 mt) and Mexico (3,200 mt, including decreases of 100 mt).
Boxed beef prices are lower: choice down $0.06 ($232.96) and select down $0.67 ($220.29) with a movement of 104 loads (64.19 loads of choice, 13.69 loads of select, 5.89 loads of trim and 20.10 loads of ground beef).
FRIDAY'S CASH CATTLE CALL: $1.00 higher. Thankfully packers need cattle and time in the week is running low. Feedlots won't have easy negotiations but obtaining $1.00 higher isn't out of the question.
FEEDER CATTLE:
Earlier in the day it looked like the corn market was going to keep to minimal gains, and that the feeder cattle contracts were going to be able to push past their slight rally and continue to trade higher. But as the afternoon trailed on, confidence grew throughout the corn market, which led the feeder cattle contracts into a mixed close. There's more confidence in the deferred contracts as the feeder cattle contracts hope there will be enough upside advancement in the live cattle and cash markets, so that feedlots will reap the benefits of a more profitable environment and be able to pay more for feeders and calves. March feeders closed $0.35 lower at $139.15, April feeders closed $0.12 lower at $143.37 and May feeders closed $0.02 higher at $145.45. At Napoleon Livestock Auction in Napoleon, North Dakota, compared to last week's sale, most weight groups were not well tested as the sale was light due to frigid temperatures. Feeder steers weighing 500 to 550 pounds and steers weighing 700 to 750 pounds sold $2.00 to $7.00 lower, but steers weighing 600 to 650 pounds sold $2.00 higher. Feeder heifers weighing 550 to 600 pounds sold $4.00 to $6.00 lower, while heifers weighing 600 to 650 pounds and those weighing 700 to 750 pounds sold steady to $4.00 higher. The CME Feeder Cattle Index for Feb. 10: down $0.16, $135.49.
LEAN HOGS:
The lean hog contracts leaned into Thursday's trade, thinking full steam ahead! The e complex was able to close higher with the biggest gains seen in some of the nearby contracts as the market relishes in the fact that both international and domestic demand is strong, giving packers all the more reason why they should keep slaughter speeds on high. April lean hogs closed $2.42 higher at $84.25, June lean hogs closed $0.70 higher at $90.90 and July lean hogs closed $0.45 higher at $91.15. It wasn't disappointing to see the cash market close slightly lower given the big advancements that were made earlier in the week. Pork cutouts totaled 336.42 loads with 303.48 loads of pork cuts and 32.94 loads of trim. Pork cutouts closed higher: up $2.01, $88.87. Thursday's slaughter is estimated at 494,000 head, 38,000 head more than a week ago and 6,000 head more than a year ago. The CME Lean Hog Index for Feb. 9: up $0.67, $71.74.
Thursday's actual slaughter data shared lighter carcass weights for the pork industry. Live carcass weights averaged 293 pounds (down 2 pounds) and dressed weights averaged 219 pounds (down 1 pound).
Pork net sales of 36,900 mt reported for 2021, increases were primarily for China (9,700 mt, including decreases of 1,200 mt), South Korea (8,200 mt, including decreases of 200 mt) and Mexico (5,100 mt, including decreases of 400 mt).
FRIDAY'S CASH HOG CALL: Steady. Packers are making money so they are going to at least dabble in the cash market come Friday, but with how strongly the market moved earlier in the week, higher prices may be a far-fetched idea.
No comments:
Post a Comment