GENERAL COMMENTS
The livestock complex closed mixed with the live cattle contracts closing higher, feeders closing lower and hogs ending the week mixed. The most excitement throughout Friday's market was seen in the cash cattle market as the standoff between packers and feedlots broke and Southern cattle traded for $160 to $161, which is $1.00 to $2.00 higher than last week's weighted average. Hog prices closed $0.28 higher on the Daily Direct Afternoon Hog Report, equating to a weighted average of $77.05 on 7,226 head. March corn is up 9 3/4 cents per bushel and March soybean meal is up $3.90. The Dow Jones Industrial Average is up 160.68 points.
Friday to Friday, livestock futures scored the following changes: February live cattle up $0.93, April live cattle down $0.17; March feeder cattle up $0.30, April feeder cattle up $0.05; February lean hogs up $0.85, April lean hogs down $3.15; March corn up $0.03, March corn up $0.03.
LIVE CATTLE:
The live cattle complex traded higher a throughout Monday's market, though it was in a mild manner. February live cattle closed $0.37 higher at $161.20, April live cattle closed $0.32 higher at $163.95 and June live cattle closed $0.22 higher at $159.75. Traders advanced the contracts as Thursday's afternoon cash cattle trade was the boost of support they needed, but at the same time, they were mild in doing so, as they waited for trade to bust loose in the Southern Plains. Within the last two hours of Friday's market, trade was reported in the South at $160 to $161, which is $1.00 to $2.00 higher than last week's weighted average. Northern dressed cattle traded at $254, which is $4.00 higher than last week's weighted average. Feedlot's willingness to hold the line and pressure packers again paid off for them this week.
Friday's slaughter is estimated 122,000 head, steady with a week ago and 1,000 head more than a year ago. Saturday's slaughter is projected to be around 14,000 head. This week's slaughter is estimated at 630,000 head, 11,000 head less than a week ago and 41,000 head less than a year ago.
Boxed beef prices closed higher: choice up $0.37 ($269.66) and select up $0.28 ($254.29) with a movement of 111 loads (53.27 loads of choice, 8.94 loads of select, 6.29 loads of trim and 42.30 loads of ground beef). The choice/select spread now sits at $15.37. Throughout the week choice cuts averaged $267.89 (which is $2.07 higher than last week) and select cuts averaged $254.50 (which is $2.00 higher than last week).
MONDAY'S CATTLE CALL: Higher. Cash prices will likely be higher again next week as fed cattle supplies remain incredibly thin.
FEEDER CATTLE:
The feeder cattle complex closed lower as the corn market's vibrant rally washed away feeders' confidence. A mere $0.02 to $0.03 rally in the corn complex would have been manageable for feeders, but as the corn market grew stronger throughout the day and ultimately ended up closing $0.07 to $0.09 higher in its nearby contracts, the feeder cattle market stood little to no chance at trading higher. March feeders closed $0.42 lower at $186.40, April feeders closed $0.05 lower at $190.67 and May feeders closed $0.12 lower at $194.55. Demand continues to remain strong in the countryside for both feeder cattle and calves, and the closer the market gets to spring and green grass, prices will likely continue to get stronger. At Mitchell Livestock Auction in Mitchell, South Dakota, compared to last week, feeder steers weighing 500 to 750 pounds sold $1.00 to $5.00 higher, steers weighing 850 to 1,000 pounds sold $2.00 to $3.00 higher with instances of $8.00 higher on steers weighing 800 to 850 pounds. Feeder heifers weighing 550 to 800 pounds sold steady to $3.00 higher, heifers weighing 800 to 950 pounds sold steady to $5.00 stronger. Feeder cattle supply over 600 pounds was 91%. The CME Feeder Cattle Index for Feb. 9: up $0.56, $183.09.
LEAN HOGS:
The lean hog complex rounded out the day mixed as the nearby contracts closed steady to somewhat higher while the deferred contracts closed modestly lower. It was encouraging for the complex that demand did indeed carry into the day's afternoon pork cutout report as prices closed slightly higher. The biggest day over day gains were seen in the belly as prices jumped $8.21, which could be volatile for Monday's pork cutout value, but it's a win for Friday none the less. April lean hogs closed steady at $83.32, June lean hogs closed steady at $101.65 and July lean hogs closed $0.25 lower at $103.62. Pork cutouts totaled 222.03 loads with 207.18 loads of pork cuts and 14.86 loads of trim. Pork cutout values: up $0.66, $81.05.
Friday's slaughter is estimated at 481,000 head, 3,000 head less than a week ago and 10,000 head more than a year ago. Saturday's slaughter is projected to be around 93,000 head. The CME Lean Hog Index for Feb. 8: up $0.05, $73.80.
MONDAY'S HOG CALL: Lower. Hog prices will likely be higher again next week by Tuesday or Wednesday, but packers aren't normally aggressive in the cash hog market on Monday.
No comments:
Post a Comment