GENERAL COMMENTS:
It's been a tough market to crack come Monday as the entire futures market traipses lower. Whether it be from expected interest rate hike coming later this week, the announcement of more COVID cases in China or the fact that the was in Ukraine isn't getting any better all bodes negatively against the marketplace. July corn is down 5 cents per bushel and July soybean meal is down $10.10. The Dow Jones Industrial Average is down 643.71 points.
LIVE CATTLE:
As the marketplace feels the tremor of nervous and anxious traders amid an uncertain economy, the live cattle contracts are retreating and gapping lower. June live cattle are down $2.50 at $133.70, August live cattle are down $2.57 at $133.62, and October live cattle are down $2.30 at $139.67. It was positive to see last week's breakdown of the cash cattle that sold. With 88,218 head selling, and 82% being committed for the nearby delivery, it's safe to say that packers are close to the knife and will likely need to actively participate in this week's cash cattle market again.
Last week's negotiated cash cattle market totaled 88,218 head. Of that, 82% (72,753 head) are committed for the nearby delivery, while the remaining 18% (15,465 head) are committed for the deferred delivery.
Boxed beef prices are lower: choice down $0.13 ($271.19) and select down $0.89 ($248.00) with a movement of 39 loads (22.13 loads of choice, 10.32 loads of select, 4.92 loads of trim and 1.49 loads of ground beef).
FEEDER CATTLE:
The only bright side to Monday's feeder cattle market is that while the complex endures a $2.00 to $3.00 regression, at least corn prices are trending lower too. August feeders are down $3.60 at $170.87, September feeders are down $2.82 at $173.22 and October feeders are down $2.57 at $174.97. The feeder cattle market's weakness comes as no surprise as the rest of the marketplace veers lower as questions about our economy rise. Hopefully by midweek the market will be able to cling to its bullish fundamentals as Superior Livestock Auction will host their annual Corn Belt Classic sale in Sioux City, Nebraska, June 15-16 where 66,500 head are set to sell.
LEAN HOGS:
The lean hog complex is following right in line with the rest of the market complex as it trends modestly lower. July lean hogs are down $0.57 at $104.90, August lean hogs are down $1.05 at $102.70 and October lean hogs are down $1.40 at $91.17. Pork cutout values are printing higher at midday, which means the market could see a higher close, but with how uncertain everything is headed into the new week -- don't hold your breath for anything. Counting on consistent consumer interest/demand in a highly inflated economy isn't a winning equation and traders were skeptical of the hog complex last week too. All in all, it's likely that hogs close lower given that the market's attitude is skeptical and uncertain.
The projected lean hog index for June 10 is up $0.21 at $107.40, and the actual index for June 9 is down $0.12 at $107.19. Hog prices are lower on the Daily Direct Morning Hog Report, down $2.51 with a weighted average of $112.82, ranging from $110.00 to $119.00 on 3,048 head and a five-day rolling average of $116.01. Pork cutouts total 192.13 loads with 154.81 loads of pork cuts and 37.31 loads of trim. Pork cutout values: up $2.84, $112.00.
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