GENERAL COMMENTS:
The livestock complex is struggling to find any support through Monday's market as all three of the livestock markets are trading lower into the noon hour. A dreary tone has seemed to overcome the livestock complex, and unless some strong support develops (higher cash cattle trade, excellent pork demand) the market is likely to close with this weaker tone. May corn is down 1 1/2 cents per bushel, and May soybean meal is down $4.00. The Dow Jones Industrial Average is up 173.40 points.
LIVE CATTLE:
The spot April contract is teetering with trading below its 40-day moving average, as the market longs to find support early this week. Last week boxed beef prices endured some normal seasonal pressure, but that's seemed to become the market's entire focus early this week, and some are wondering whether it will have an effect on this week's cash cattle market. With supplies of market-ready fed cattle still incredibly thin, I tend to believe that feedlots could still push the market $1 or $2 higher. April live cattle are down $1.12 at $163.25, June live cattle are down $0.92 at $157.72, and August live cattle are down $0.77 at $157.65.
Last week negotiated cash cattle trade took place on Thursday and Friday. Northern dressed cattle traded from $261 to $268.50, but mostly at $265 which was fully steady with the previous week's weighted average. Southern live cattle traded for $163 to mostly $165 which was also fully steady with the previous week's weighted average.
Boxed beef prices are mixed: choice down $0.33 ($284.58) and select down $1.45 ($272.99) with a movement of 39 loads (26.69 loads of choice, 4.72 loads of select, 3.95 loads of trim and 3.66 loads of ground beef).
FEEDER CATTLE:
With the live cattle complex lending little to no support, the feeder cattle complex is trading lower, as it lacks the necessary support from the live cattle market to trade higher and as it watches corn prices trade mixed. March feeders are down $1.07 at $190.40, April feeders are down $1.50 at $196.15 and May feeders are down $1.87 at $201.70. On Friday the market will receive another Cattle on Feed, which should help pick the market's morale back up, as on-feed and placement numbers should be lighter.
LEAN HOGS:
The lean hog complex is following in the cattle complex's path as it enters Monday's afternoon fully lower. Midday pork cutout values can mean little to the market as much can change by the day's close, but it is encouraging to see that pork cutout values are up $4.77. April lean hogs are down $1.45 at $86.00, June lean hogs are down $1.10 at $101.67, and July lean hogs are down $0.87 at $104.02. Demand will continue to be one of the lean hog market's biggest concerns, as consumers have been very touch-and-go with their buying habits at the pork counter so far this year.
The projected lean hog index for 3/10/2023 is up $0.24 at $79.86, and the actual index for 3/9/2023 is up $0.23 at $79.62. Hog prices lower on the Daily Direct Morning Hog Report, down $2.85 with a weighted average of $74.98, ranging from $66.40 to $82 on 4,640 head and a five-day rolling average of $77.59. Pork cutouts total 125.47 loads with 113.23 loads of pork cuts and 12.23 loads of trim. Pork cutout values: up $4.77, $92.57.
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