GENERAL COMMENTS:
The livestock complex saw higher prices again Tuesday as, technically speaking, the contracts are seeing tremendous support. The cash hog market jumped nearly $3.00 higher and traded a staggering volume of hogs. Now the cash cattle market just needs to follow that trend for the week. Hog prices closed higher on the National Direct Afternoon Hog Report, up $2.90 with a weighted average of $89.41 on 13,406 head. March corn is down 17 3/4 cents per bushel and March soybean meal is down $9.60. The Dow Jones Industrial Average is up 422.67 points and NASDAQ is up 348.84 points.
LIVE CATTLE:
Live cattle futures saw modest gains again Tuesday, but the cash cattle market has yet to see significant trade. Thankfully, given that feedlots have pushed the market to trade later in the week, feedlots may be able to hold the cash at least steady. If the futures can trade higher Wednesday, then the cash market will likely stand a stronger chance at keeping its steady tone as feedlots have some technical support. Tuesday's slaughter was impressive at a whopping 123,000 head. If the week continues to run chain speeds this aggressively, packers will certainly need more cattle in the weeks to come. February live cattle closed $0.47 higher at $142.90, April live cattle closed $0.55 higher at $146.90 and June live cattle closed $0.67 higher at $142.12. The market should see some cash cattle trade develop Wednesday. Asking prices in the South are noted at $142 to $143 and the North has yet to really share what they'd like to get. Tuesday's slaughter is estimated at 123,000 head -- 1,000 head more than a week ago and 31,000 head more than a year ago.
Boxed beef prices closed lower: choice down $3.59 ($270.37) and select down $0.93 ($267.82) with a movement of 165 loads (94.09 loads of choice, 17.26 loads of select, 18.68 loads of trim and 34.92 loads of trim).
WEDNESDAY'S CASH CATTLE CALL: Steady to $1.00 higher. The market will be hard pressed to get cattle traded much above steady as packers have some cattle already committed. But, with how vigorously chain speeds have been running in the plants -- they are bound to need cattle.
FEEDER CATTLE:
Feeder cattle futures closed higher, as the market rallied upon technical support from a weak grain complex and continued interest throughout the countryside. March feeders closed $1.85 higher at $168.72, April feeders closed $1.05 higher at $172.55 and May feeders closed $1.37 higher at $176.92. With the live cattle contracts closing mildly stronger, the feeder cattle contracts felt confident enough to push their prices higher and test resistance. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week, on a run of 13,154 head, feeder steers and heifers traded steady to $2.00 lower, with a decline on the heavier weights. Stocker cattle and calves traded $2.00 to $6.00 higher. The CME Feeder Cattle Index 2/14/2022: down $0.45, $162.71.
LEAN HOGS:
The lean hog complex saw immense support in the cash and the futures wasted no time pushing the contracts higher yet again. April lean hogs closed $1.82 higher at $104.15, June lean hog closed $1.85 higher at $113.70 and July lean hogs closed $1.70 stronger at $112.95. The cash hog market was impressive as 13,406 head sold and prices jumped $2.90 higher. Pork cutout values closed lower, but the day's movement was big with 324.78 loads. The market has yet to test the resistance levels of last week, but if the market rallies in the latter half of the week it will be close. Pork cutouts totaled 324.78 loads with 298.26 loads of pork cuts and 26.53 loads of trim. Pork cutout values: down $1.26, $106.72. Tuesday's slaughter is estimated at 478,000 head -- 6,000 head more than a week ago and 69,000 head more than a year ago. The CME Lean Hog Index 2/11/2022: up $1.59, $90.51.
WEDNESDAY'S CASH HOG CALL: Lower. Given that the market made such leaps and bounds in cash through Tuesday, prices will likely see a decrease Wednesday as packers bought a strong run of hogs.
No comments:
Post a Comment