Thus far, it's been a slow and quiet day throughout the livestock complex. The feeder cattle contracts are the only livestock market receiving any support at this time, as cattlemen want to see how this week's cash cattle market pans out and are acting somewhat cautious ahead of Friday's Cattle on Feed report. The lean hog complex continues to yearn for fundamental support, but with demand in question, it's hard for any to surface. May corn is down 1/4 cent per bushel and July soybean meal is down $4.60. The Dow Jones Industrial Average is down 49.76 points.
LIVE CATTLE:It's your typical quiet Tuesday throughout cattle land as no action has developed in the cash market and traders are being cautious. The deferred contracts are still seeing modest support as time nears the noon hour, but all the nearby contracts are trading just below steady. June live cattle are down $0.07 at $164.80, August live cattle are down $0.12 at $163.65 and October live cattle are down $0.15 at $167.65. Bids and asking prices remain unestablished throughout the countryside and it's not likely that they'll become available ahead of Wednesday. The overall feel of this week's market could be a little more hesitant as compared to week's past as that's simply the nature of the market ahead of any Cattle on Feed report -- even when its findings are supposed to be supportive. Even so, cash cattle prices are expected to still trade higher as beef demand remains incredible and showlists are extremely current.
Boxed beef prices are higher: choice up $0.46 ($306.44) and select up $1.85 ($291.17) with a movement of 56 loads (36.91 loads of choice, 6.94 loads of select, zero loads of trim and 12.49 loads of ground beef).
FEEDER CATTLE:The feeder cattle complex is the only livestock market trading fully higher into Tuesday's noon hour. As traders appraise the marketplace, they can't help but to focus on the seemingly untamable demand from buyers who know that supplies of both calves and feeders is only going to grow thinner in the months ahead. Once the fat cattle market trades, feeders will likely add another bullish feather to their hat as prices are expected to trade steady to higher again this week. May feeders are up $0.07 at $210.82, August feeders are up $0.80 at $226.15 and September feeders are up $0.55 at $229.22.
LEAN HOGS:The lean hog contracts tried to keep with Monday's ambitious momentum but quickly noticed that the market didn't have enough support to keep with its upward trend. Even though the contracts are trading lower, they've not yet tested the support plane established last Thursday, which is significant. If the market breaks below that price point, then it's hard telling where the new floor may be. But if the contracts can remain above that support plane, it will signal to traders that a bottom has been established. Yes, midday pork cutout values are slightly higher, but that's solely because of a $11.58 jump in ham prices. Volatility continues to run rapidly throughout both ham and belly prices. June lean hogs are down $1.72 at $86.45, July lean hogs are down $1.10 at $89.37 and August lean hogs are down $0.65 at $90.47.
The projected lean hog index is unavailable at this time. Hog prices on the Daily Direct Morning Hog Report average $67.94, ranging from $62.00 to $68.00 on 3,770 head and a five-day rolling average of $68.91. Pork cutouts total 216.74 loads with 194.94 loads of pork cuts and 21.79 loads of trim. Pork cutout values: up $0.85, $78.46.
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