GENERAL COMMENTS:
The cattle contracts are having another stellar day as both the live cattle and feeder cattle contracts use Thursday as an opportunity to trend higher. Meanwhile, the lean hog complex is feeling pressured to trade lower as consumer interest is hit and miss. May corn is down 13 1/2 cents per bushel and July soybean meal is down $2.40. The Dow Jones Industrial Average is up 36.09 points.
LIVE CATTLE:
The live cattle complex is striding out and touching price points that haven't been seen since late February. The market is relishing in the fact that market-ready fat cattle supplies are tight and that has pushed packers into paying more for cattle this week, and sent the board launching higher. April live cattle are up $0.72 at $143.80, June live cattle are up $0.87 at $139.50 and August live cattle are up $0.90 at $141.05. The market hasn't seen any more cash cattle trade develop, and it's likely that the bulk of the week's trade is done with. Asking prices for cattle left on showlists are around $142 to $143 in the South and $236-plus in the North.
This week Southern live deals have been marked at $139 to $141, mostly $140, $1 higher. Northern dressed cattle have sold from $230 to $232, mostly $230, $4 higher. Some sales were also reported in parts of Colorado at $144, $2 higher.
Beef net sales of 15,000 mt for 2022 were down 13% from the previous week and 27% from the prior four-week average. The three largest buyers were Japan (4,600 mt), South Korea (4,100 mt) and China (2,500 mt).
Boxed beef prices are mixed: choice up $0.94 ($269.76) and select down $0.29 ($256.24) with a movement of 54 loads (30.34 loads of choice, 10.89 loads of select, zero loads of trim and 12.30 loads of ground beef).
FEEDER CATTLE:
The feeder cattle contracts are feeling like the perfect storm has overcome its market this week. Grain prices continue to trend lower as the live cattle market remains strong, which consequently is opening the door for feeders to trade higher. Drought and worries about what cost of gains are continues to be an issue for the market, but that doesn't mean the complex can take a bone when it's given one. April feeders are up $0.40 at $157.90, May feeders are up $1.40 at $163.87 and August feeders are up $1.82 at $175.30. Sales continue to be light this week as largely both calves and feeders have already worked their way through this winter/spring market.
LEAN HOGS:
Thursday is turning out to be the third consecutive day of lower trade for the lean hog complex as the market struggles to entice traders to trade confidently within its realm. June lean hogs are down $2.02 at $116.70, July lean hogs are down $2.00 at $118.05 and August lean hogs are down $1.77 at $116.62. At this point, the market doesn't expect much export support, but it never "feels" good to see a marketing-year low reported. While the lean hog complex is getting beat up from the board, the morning's cash hog market is off to a good start. Pork demand may not be as lively as packers would like to see it, but with the Avian bird flu sending eggs and poultry products higher, consumers could begin to take a harder look at their other options, which are primarily pork and beef.
Pork net sales of 12,900 mt for 20222 -- a marketing-year low -- were down 46% from the previous week and 55% from the prior four-week average. The three largest buyers were Mexico (4,700 mt), South Korea (2,800 mt) and Philippines (1,300 mt).
The projected lean hog index for April 20 is up $0.32 at $101.25 and the actual index for 4/19/2022 is up $0.43 at $100.93. Hog prices are higher on the Daily Direct Hog Report, up $6.39 with a weighted average of $105.41, ranging from $94.00 to $111.50 on 8,257 head and a five-day rolling average of $101.03. Pork cutouts total 119.06 loads with 102.47 loads of pork cuts and 16.59 loads of trim. Pork cutout values: up $2.97, $111.46.
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