GENERAL COMMENTS:
Traders were eager to support the cattle contracts throughout Monday's trade but unfortunately the lean hog complex didn't see the same type of technical support. But with both pork cutout values and cash hog prices closing higher, Tuesday's market may be more favorable to the hog complex. Hog prices closed higher on the Daily Direct Afternoon hog report, up $1.91 with a weighted average of $72.8 on 7,868 hogs. July corn closed steady and July soybean meal closed up $0.80 at $426.9. The Dow Jones Industrial Average is down 55.69 at 33,618.69.
LIVE CATTLE:
Traders kept with their supportive nature throughout Monday's close even though boxed beef prices rounded out the day lower. Traders have found support around the market's 40-day moving average and it's looking as though they're wanting to respect that threshold moving forward. No cash cattle trade was reported throughout the day, but traders will be closely waiting and watching to see what trade does develop for later in the week as even trading cattle at steady money would be seen as an improvement. June live cattle closed $0.50 higher at $162.425, August live cattle closed $0.58 higher at $160.075 and October live cattle closed $0.55 higher at $164.125. New showlists appear to be about steady in Nebraska/Colorado, and lower in Kansas and Texas. Monday's slaughter is estimated at 126,000 head, 3000 head more than a week ago and 7,000 head more than a year ago.
Last week, a light to moderate trade took place on Wednesday and Thursday, with just a little clean up trade on Friday. Northern dressed cattle traded for $278 to $285, but mostly for $281, which is $3.00 lower than the previous week's weighted average. Southern live cattle traded for $170 to $174, but mostly at $172, which is $1.00 lower than the previous week's weighted average. Last week's negotiated cash cattle trade totaled 86,560 head. Of that, 70% (60,706 head) were committed for the nearby delivery, while the remaining 30% (25,854 head) were committed for the deferred delivery.
Boxed beef prices closed lower: choice down $0.63 ($308.56) and select down $3.04 ($285.12) with a movement of 77.77 loads (46.75 loads of choice, 18.03 loads of select, 3.49 loads of trim and 9.50 loads of ground beef).
TUESDAY'S CATTLE CALL: Steady. Packers may have got some cattle bought with time last week, but front-end supplies are still thin. They'll need to stay engaged and active in the cash market to avoid becoming short bought.
FEEDER CATTLE:
The feeder cattle complex was able to close higher with most of the market's support stemming from the higher trade seen throughout the live cattle contracts, but also from the steady to somewhat lower tone seen throughout corn prices. May feeders closed $0.90 higher at $203.425, August feeders closed $1.68 higher at $223.1 and September feeders closed $1.60 higher at $226.65. Traders are willing to trade the feeder cattle contracts higher, but they need the support from the live cattle complex and more so from the cash cattle market. Feeders will be closing watching how the live cattle/cash cattle market traders all throughout the week. At Joplin Regional Stockyards in Carthage, Missouri, compared to last week and at their midsession point, feeder steers were selling steady to $4.00 lower and feeder heifers under 600 pounds were selling $3.00 to $5.00 lower. Heavier weight heifers were trading steady. The CME Feeder Cattle Index for May 5: up $0.55, $200.01.
LEAN HOGS:
Monday's market lent the lean hog contracts no kind wishes or best regards, but with both the cash hog market and pork cutout values closing higher by the day's end, Tuesday's market may stand a chance at trading higher if traders will allow it. June lean hogs closed $0.47 lower at $83.30, July lean hogs closed $0.15 lower at $85.27 and August lean hogs closed $0.17 lower at $86.20. It was refreshing to finally some prices printed on the Daily Direct Afternoon Hog report, as on Friday and Monday morning prices were not printed due to confidentiality issues. Steady price increased throughout most of the pork cuts allowed the carcass value to close higher too, as the butt and the belly were the only two cuts which closed lower. Pork Cutouts totaled 250.48 loads with 220.56 loads of pork cuts and 29.92 loads of trim. Pork cutout values are up $0.07 at $81.94. Monday's slaughter is estimated at 468,000 head, 19,000 head more than a week ago and 9,000 head more than a year ago. The CME Lean Hog Index for May 4: up $0.29, $74.53.
TUESDAY'S HOG CALL: Higher. With pork cutout values closing higher, packers may be more inclined to support the cash market if demand is going to remain steady.
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