GENERAL COMMENTS:
It was a mixed day for the livestock complex as the cattle contracts endured another day of low blows from the futures market, but the lean hog complex was able to close fully higher. Hog prices closed lower on the National Direct Afternoon Hog Report, down $1.58 with a weighted average of $111.52 on 7,307 head. July corn is down 10 1/2 cents per bushel and July soybean meal is down $5.00. The Dow Jones Industrial Average is down 164.55 points and NASDAQ is down 39.19 points.
LIVE CATTLE:
Watching Wednesday's market play out for the live cattle and cash cattle markets was extremely disappointing. The futures market closed lower, and cash cattle sold lower (especially in the North) with delivery expected in the 15- to 30-day delivery period. June live cattle closed $0.40 lower at $115.45, August live cattle closed $0.82 lower at $116.47 and October live cattle closed $1.05 lower at $121.05. The problem with cattle selling with time is that it hinders the cash cattle market's ability to rally in the weeks to come. As packers secure their supplies now, they're willingness to support the cash cattle market in the upcoming weeks grows smaller and smaller and prices, more often than not, remain steady, if not fall lower. Cattle sold in the South for $118 to $120 and dressed cattle sold for $190 to $191. Of the cattle that sold in the North, a large percentage of them sold with delivery set for either the week of May 10 or May 17. June live cattle closed $0.40 lower at $115.45, August live cattle closed $0.82 lower at $116.47 and October live cattle closed $1.05 lower at $121.05. Wednesday's slaughter is estimated at 120,000 head, steady with a week ago and incomparable to a year ago.
Boxed beef prices closed mixed: choice up $1.51 ($292.50) and select down $0.53 ($279.00) with a movement of 130 loads (78.46 loads of choice, 25.31 loads of select, 13.07 loads of trim and 13.54 loads of ground beef).
THURSDAY'S CASH CATTLE CALL: Steady. With packers able to buy cattle with time for lower prices, their willingness to bump up prices come Thursday and Friday is slim.
FEEDER CATTLE:
After an exhausting day, the feeder cattle contracts closed lower even though the corn market couldn't keep its rally through closing. The market attempted to trade higher initially when only the May contract was rallying, but when the July and September corn contracts started to pull some support, the feeder cattle market bowed lower and continued to wave its white flag through closing. May feeders closed $0.90 lower at $134.97, August feeders closed $1.17 lower at $148.90 and September feeders closed $1.30 lower at $150.90. At Winter Livestock Auction in Dodge City, Kansas, compared to last week, steer steers weighing 725 pounds to 1,000 pounds sold $1.00 to $3.00 lower. Steers weighing 600 to 725 pounds sold $3.00 to $4.00 higher and there was not an accurate comparison between last week's sale and this week's to measure the steers 400 to 600 pounds, but lower undertones were noted. Feeder heifers weighing 650 to 850 pounds sold steady to $2.00 lower. Heifers weighing 500 to 600 pounds sold $1.00 to $2.00 lower. Slaughter cows sold steady and slaughter bulls sold $6.00 to $7.00 higher. The CME Feeder Cattle Index for April 27: down $0.15, $135.07.
LEAN HOGS:
Understanding that volatile markets create choppy trade is crucial in understanding this week's developments in the lean hog market. Following Tuesday's ginormous cash rally, it's not that surprising to see Wednesday's market close lower, and seeing that packers still bought upward 7,000 head is encouraging as they continue to scout for market ready supplies. June lean hogs closed $2.45 higher at $109.12, July lean hogs closed $2.62 higher at $107.95 and August lean hogs closed $1.85 higher at $103.92. As the lean hog contracts all closed fully higher, Thursday may pressure the contracts to trade lower as the market is flirting with resistance levels again. Pork cutouts totaled 301.39 loads with 249.87 loads of pork cuts and 51.52 loads of trim. Pork cutout values: down $2.47, $108.21. Wednesday's slaughter is estimated at 483,000 head, 2,000 head less than a week ago and incomparable to a year ago. The CME Lean Hog Index for April 26: up $0.22, $107.39.
THURSDAY'S CASH HOG CALL: Steady. With Tuesday's sharp cash advancement bumping the market over $5.00 higher, the next couple of days could be steady to somewhat lower for the cash hog market.
No comments:
Post a Comment