Wednesday, April 12, 2023

Wednesday Midday Livestock Market Summary - Complex Continues to Charge Higher

GENERAL COMMENTS:

The livestock complex is trading mostly higher as the cattle complex continues to rally on strong market fundamentals, and the lean hog complex is finding some mild support, which is allowing even the hog contracts to trade higher into Wednesday's afternoon. A few bids are currently on the table in Nebraska, but no cash cattle trade has developed at this point. May corn is up 3 1/2 cents per bushel and May soybean meal is up $1.90. The Dow Jones Industrial Average is up 101.94 points.

LIVE CATTLE:

The live cattle complex is continuing to trade higher as traders are soaking up all the fundamental support that the market has to offer. From higher boxed beef prices to the expectation that cash cattle ­­­trade will be higher, the market is charged and continues to trade upward. April live cattle are up $0.82 at $173.12, June live cattle are up $0.37 at $164.32 and August live cattle are up $0.25 at $163.50. A couple bids are currently being offered in Nebraska at $175 live and $280 dressed, but feedlots are letting those offers grow cold as they're far below current asking prices. Asking prices in the South are noted at $174 to $177, and $286-plus in the North. Trade could begin to develop later Wednesday afternoon, but it's more likely that trade waits to develop until Thursday as feedlots are eager to trade cattle higher again this week.

Boxed beef prices are higher: choice up $3.33 ($298.43) and select up $1.04 ($283.08) with a movement of 69 loads (50.26 loads of choice, 9.85 loads of select, zero loads of trim and 9.12 loads of ground beef).

FEEDER CATTLE:

The feeder cattle complex is again rallying as corn prices are trending mostly steady and the live cattle complex is lending ample support as traders patiently wait for this week's cash cattle trade to develop. The deferred feeder cattle contracts are again taking the lead on Wednesday's charge as the deferred contracts run anywhere from $1.42 to $1.55 higher. Tuesday's supportive WASDE report helped shine light on the fact that cattle prices are expected to only get stronger in the later half of 2023 as supplies remain incredibly thin. April feeders are up $0.15 at $202.25, May feeders are up $0.82 at $208.65 and August feeders are up $1.32 at $225.67.

LEAN HOGS:

The lean hog complex is trending mildly higher as the nearby contracts are facing modest resistance, while the deferred contracts are stepping out and trading mildly higher. June lean hogs are up $0.50 at $88.37, July lean hogs are up $0.30 at $91.05 and August lean hogs are up $0.25 at $92.00. It would be encouraging to see Wednesday afternoon's pork cutout value close higher as it could help propel the market higher on Thursday, especially if Thursday morning's export report is favorable.

The projected lean hog index for April 11 is down $0.27 at $72.25, and the actual index for April 10 is down $0.12 at $72.52. Hog prices are down $0.14 on the Daily Direct Morning Hog Report, down $0.14 with a weighted average of $70.00, ranging from $64.00 to $72.00 on 3,065 head and a five-day rolling average of $70.42. Pork cutouts total 170.11 loads with 149.14 loads of pork cuts and 20.97 loads of trim. Pork cutout values: down $1.61, $75.85.




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