GENERAL COMMENTS:
The cattle contracts may have had another rough day, but the lean hog contracts didn't let than rain on their ambitious market. As corn prices keep creeping higher, the cattle contracts continue to wane lower, but the lean hog market took Monday with a bold grasp and rallied significantly higher. Hog prices closed higher on the National Direct Afternoon Hog Report, up $0.45 with a weighted average of $104.94 on 6,311 head. May corn is up 6 1/2 cents per bushel and July soybean meal is up $4.90. The Dow Jones Industrial Average is down 123.04 points and NASDAQ is down 137.58 points.
LIVE CATTLE:
Other than the downward attitude that filtrated its way through the live cattle complex, there wasn't much else to note about Monday's trade. A lack of trader interest sent the contracts trading lower, and the cash cattle market is yet to be tested as it's too early in the week for interest to have developed. April live cattle closed $0.50 lower at $120.35, June live cattle closed $0.57 lower at $118.60 and August live cattle closed $0.50 lower at $118.65. New showlists appear to be higher in Texas, and Nebraska/Colorado and somewhat lower in Kansas. Monday's slaughter is estimated at 119,000 head -- 7,000 head more than a week ago and 32,000 head more than a year ago.
Last week's negotiated cash cattle trade totaled 88,624 head. Of that 55% (48,568 head) are committed for delivery in the next two weeks while the remaining 45% (40,056 head) are committed for delivery in the following 15 to 30 days.
Boxed beef prices closed higher: choice up $0.12 ($276.17) and select up $0.03 ($269.13) with a movement of 91 loads (44.18 loads of choice, 17.51 loads of select, 9.67 loads of trim and 19.68 loads of ground beef).
TUESDAY'S CASH CATTLE CALL: Steady to $1.00 higher. Feedlots have their work cut out for them this week, but higher trade isn't completely out of the question. As feedlots step back and see corn prices rallying amid rallying boxed beef prices, feedlots know there is more to be had than that packers are currently paying.
FEEDER CATTLE:
The recent spike in corn prices has really come as a hinderance to the feeder cattle contracts. With cost of gains on everyone's mind, it's hard to stomach higher corn prices while fat cattle prices continue to dance around $120.00 live. Feedlots have gotten creative in using other feeds to try to lessen some of their input costs, but when inputs are a lofty problem, operations must become meticulous about where every penny goes. April feeders closed $1.90 lower at $137.72, May feeders closed $1.25 lower at $142.47 and August feeders closed $1.77 lower at $152.77. At Joplin Regional Stockyards in Carthage, Missouri at their midsession point compared to last week feeder steers under 600 pounds were selling steady, while those under 600 pounds were selling steady to $3.00 lower. Feeder heifers that weighed under 500 pounds sold steady and those weighing more than 500 pounds sold $3.00 to $5.00 lower. The CME Feeder Cattle Index for April 16: down $1.55, $140.13.
LEAN HOGS:
Pork cutouts closed higher and Monday's slaughter is estimated at a brisk pace, which are all positive, bullish signs to the lean hog market. June lean hogs closed $2.62 higher at $104.32, July lean hogs closed $2.27 higher at $101.97 and August lean hogs closed $2.40 higher at $98.55. With last week's mixed trade, the lean hog contracts were able to rally boldly through Monday's hours and not feel immediately pressured by longtime resistance levels. So long as domestic consumer demand can continue to shine through the market, hog prices stand a chance at continuing to trade steady. Pork cutouts total 328.56 loads with 299.19 loads of pork cuts and 29.36 loads of trim. Pork cutout values: up $1.99, $114.08. Monday's hog slaughter is estimated at 490,000 head -- 2,000 head more than a week ago and 125,000 head more than a year ago. The CME Lean Hog Index for April 15: up $0.21, $103.24.
TUESDAY'S CASH HOG CALL: Steady to somewhat higher. Packers weren't overly aggressive in Monday's cash market, but seeing that slaughter speeds are running vigorously and that pork cutouts closed higher, packers may feel more confident about this week's market as demand remains strong.
No comments:
Post a Comment