GENERAL COMMENTS:
The cattle contracts have gotten beat up time and time again as the corn market has jolted to unfathomable highs this spring, so now as the corn market trends lower in Monday's market, both the live cattle and feeder cattle contracts aren't wasting any time in shooting higher. Meanwhile, the lean hog complex is still trending lower as technically traders deem a correct necessary and lackadaisical buying from consumers hasn't added much support. July corn is down 13 1/4 cents per bushel and July soybean meal is down $5.10. The Dow Jones Industrial Average is down 82.29 points.
LIVE CATTLE:
Last week's negotiated cash cattle trade was a big one -- the biggest since 2020 was right at 135,487 head traded. In looking to what this week's market could bring as packers bought inventory aggressively over the last two weeks, this week's cash cattle market could be hung out to dry and see hardly any interest as packers are likely bought up. Nevertheless, the futures market is rallying into Monday's afternoon as lower corn prices come as a breath of fresh air to the entire cattle sector. June live cattle are up $3.00 at $135.65, August live cattle are up $1.85 at $137.12 and October live cattle are up $1.67 at $144.15. Showlists are lighter in Texas, Nebraska and Colorado, but somewhat higher in Kansas.
Last week's negotiated cash cattle trade totaled 135,487 head. Of that 63% (85,480 head) were committed for the nearby delivery, while the remaining 37% (50,007 head) were committed for the deferred delivery.
Boxed beef prices are higher: choice up $2.82 ($263.60) and select up $1.16 ($249.13) with a movement of 35 loads (16.65 loads of choice, 7.02 loads of select, 3.79 loads of trim and 7.22 loads of ground beef).
FEEDER CATTLE:
As the corn market drops $0.10 to $0.14 in its nearby contracts, the feeder cattle contracts leap with joy as they launch $4.00 to $5.00 higher. May feeders are up $4.60 at $160.95, August feeders are up $5.75 at $174.02 and September feeders are up $5.35 at $176.77. The countryside has been blessed with some drops of moisture here and there, which is helping boost the market's overall morale. Still, drought conditions are far from being memories of the past. It's hard to believe, but in a month the market will begin to see early summer feeder cattle sales as some ranchers set out to lock in a secured bid for their calves.
LEAN HOGS:
While the cattle contracts jump higher, the lean hog complex isn't seeing the same type of optimism float throughout its market. June lean hogs are down $1.30 at $105.07, July lean hogs are down $1.65 at $108.30 and August lean hogs are down $0.90 at $108.77. The market is seeing a sharp selloff from traders as they technically deem the market to trade lower and the market's fundamentals (supply/demand) aren't fighting the descend. Hog producers are hopeful that summer buying will increase as temperatures rise and more families gather outside but until the road could continue to be rocky.
The projected lean hog index for April 29 is down $0.18 at $101.59 and the actual index for April 28 is down $0.04 at $101.77. Hog prices are lower on the Daily Direct Morning Hog Report, down $3.50 with a weighted average of $96.08, ranging from $96.00 to $103.00 on 2,935 head and a five-day rolling average of $97.77. Pork cutouts total 211.66 loads with 202.58 loads of pork cuts and 9.08 loads of trim. Pork cutout values: down $0.17, $104.32.
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