Tuesday, April 26, 2022

Tuesday Midday Livestock Market Update - Cash Cattle Beginning to See Some Interest

GENERAL COMMENTS:

With the slight uptick in live cattle prices, the cash cattle market has begun to see some trade develop -- prices thus far are steady in the South but $2.00 higher in the North. The lean hog and feeder cattle contracts aren't as cheery as their markets continue to trade mostly lower. July corn is up 1 1/4 cents per bushel and July soybean meal is down $7.90. The Dow Jones Industrial Average is down 457.85 points.

LIVE CATTLE:

The live cattle market is back to trading green after Monday's tough start to the week. June live cattle are up $0.65 at $136.07, August live cattle are up $0.75 at $138.07 and October live cattle are up $0.62 at $144.70. The board's slightly higher trade has helped spur on some developments in the cash cattle market. Southern cattle are beginning to trade for $140 (full steady), and the north is seeing cattle sell for $232 dressed ($2.00 higher than last week) and $145 to $146 live (steady to $1.00 higher). It is being noted that majors are aggressively bidding on cattle which again highlights the fact that packers are indeed short bought. More trade is expected to develop this afternoon and into Wednesday's trade.

Boxed beef prices are mixed: choice down $0.98 ($265.62) and select up $0.77 ($257.29) with a movement of 91 loads (56.26 loads of choice, 11.93 loads of select, 7.43 loads of trim and 15.63 loads of ground beef).

FEEDER CATTLE:

The corn market is trending just slightly above steady, but with how fragile the feeder cattle market is after Monday's blood bath, the corn market's mild gain is enough to ensure that feeders trend lower. May feeders are up $0.10 at $161.42, August feeders are down $0.25 at $174.25 and September feeders are down $0.65 at $176.95. The live cattle market is trending $0.40 to $0.70 higher, and it's looking like the cash cattle market is going to take aim at higher prices again this week, and if the market does indeed trade higher, then the feeder cattle complex may be able to cling to some of its hutzpah.

LEAN HOGS:

The lean hog market continues to bleed lower as, technically, the market is finding little to no support early in the week. By and large, the market is continuing to struggle with is demand. Yes, hog supplies are tight, but American consumers are seeing unpresented inflation which is keeping some from buying as aggressively as they have in the past, and from an export perspective, U.S. pork is a relatively expensive purchase. June lean hogs are down $1.95 at $112.07, July lean hogs are down $1.80 at $114.07 and August lean hogs are down $1.50 at $113.20.

The projected lean hog index is delayed and unavailable at this time.

Hog prices are higher on the Daily Direct Morning Hog Report, up $0.14, with a weighted average of $95.74 ranging from $95.00 to $105.00 on 3,783 head and a five-day rolling average of $100.30. Pork cutouts total 178.98 loads with 169.25 loads of pork cuts and 9.72 loads of trim. Pork cutout values: down $0.21, $105.58.




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