GENERAL COMMENTS:
Thursday's export report featured a marketing year high for beef. But with corn prices trending higher, the exciting export announcement didn't carry much weight or affect the day's trade. The lean hog complex continues to tumble lower as technically the market can't summon any trader interest and fundamentally the market needs consumer support. July corn is up 4 1/4 cents per bushel and July soybean meal is up $6.80. The Dow Jones Industrial Average is down 122.26 points.
LIVE CATTLE:
The live cattle market is holding up well compared to its other livestock counterparts as they flop noticeably lower. The live cattle contracts are merely trading slideways. June live cattle are down $0.62 at $132.95, August live cattle are down $1.05 at $133.60, and October live cattle are down $1.20 at $140.72. The market was blessed with a marketing year high in Thursday's export report, but unfortunately that hasn't helped keep the market from trading in the red. The cash cattle market hasn't added any support either as it's looking like the bulk of this week's business is done. Throughout the week, live cattle traded for $140 and dressed cattle traded for $230. Some clean-up trade could develop ahead of the week's close; but largely it's looking like the bulk of this week's business is complete.
Beef net export sales of 28,400 metric tons (mt) for 2022 -- a marketing year high -- were up 95% from the previous week and from the prior four-week average. The three largest buyers were South Korea (12,000 mt), Japan (7,200 mt) and Mexico (3,600 mt).
Boxed beef prices are higher: choice up $1.14 ($256.22) and select up $1.54 ($243.72) with a movement of 71 loads (48.86 loads of choice, 11.67 loads of select, zero loads of trim and 10.63 loads of ground beef).
FEEDER CATTLE:
As the corn market flaunts a 4- to 10-cent gain, the feeder cattle contracts zipped lower right from the morning's start. May feeders are down $0.22 at $157.92, August feeders are down $1.87 at $168.15 and September feeders are down $1.75 at $171.42. As the market comes close to nearing long-term support at $168.00, feeders know they'll be in the driver's seat as supply sits in their favor this year, But with the rising cost of all inputs -- the market isn't given an easy row to hoe.
LEAN HOGS:
The lean hog complex is enduring another bloodbath as the market gets pushed sharply lower thanks to a lack of trader interest and consumer demand. June lean hogs are down $2.85 at $98.00, July lean hogs are down $3.37 at $98.17 and August lean hogs are down $2.70 at $99.25. The morning's cash prices may be sharply lower (down $7.41 from Wednesday) but it was telling to see the top bid up $1.50 while the rest of the market skated lower. Packers who were short bought and simply needed hogs still ended up giving more money to secure the hogs they needed.
The projected CME Lean Hog Index for 5/11/2022 is down $0.22 at $101.04, and the actual index for 5/10/2022 is up $0.17 at $101.26. Hog prices are lower on the Daily Direct Morning Hog Report, down $7.41 with a weighted average of $104.95, ranging from $101.00 to $116.00 on 3,939 head and a five-day rolling average of $104.54. Pork cutouts total 152.00 loads with 142.15 loads of pork cuts and 9.85 loads of trim. Pork cutout values: up $1.23, $100.72.
Pork net export sales of 26,300 mt for 2022 were up 10% from the previous week and 14% from the prior four-week average. The three primary buyers were Mexico (9,600 mt), China (4,700 mt) and South Korea (3,800 mt).
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