GENERAL COMMENTS:
Most of the livestock complex is trading higher into Friday's noon hour as the descent of corn helps alleviate some stress from the livestock sector. No new cash cattle trade has been reported and, at this point, it's looking like the week's business is essentially done with. December corn is down 32 3/4 cents per bushel and December soybean meal is down $19.00. The Dow Jones Industrial Average is down 174.67 points.
LIVE CATTLE:
The live cattle complex has just recently seen some opposition in the nearby contract, but the market's deferred months are still trading higher. Truthfully, I'm surprised to see the market trading as strongly as it is as cash prices were significantly lower this week in the North and as the market will see another Cattle on Feed report released later Friday afternoon. No new cash cattle trade has been reported, and it's looking like week's business is done with. Thus far throughout the week, Northern cattle have traded for mostly $290, which is $6.00 lower than last week's weighted average, and Southern live cattle have traded for mostly $180, which is only $2.00 lower than last week's weighted average. August live cattle are down $0.22 at $170.92, October live cattle are down $0.12 at $174.55 and December live cattle are up $0.07 at $178.75.
Beef net sales of 13,300 mt for 2023 were up 4% from the previous week but down 14% from the prior four-week average. The three largest buyers were China (4,700 mt), Japan (2,900 mt) and South Korea (1,900 mt).
Boxed beef prices are lower: choice down $0.01 ($334.46) and select down $2.90 ($300.90) with a movement of 60 loads (25.50 loads of choice, 21.24 loads of select, zero loads of trim and 13.37 loads of ground beef).
FEEDER CATTLE:
This time of year is especially tiring for the feeder cattle market. On one hand, you have great insight from large online feeder cattle sales that help indicate what fall feeder cattle prices could be but, on the other hand, the corn market is so closely tied to any and all developments in weather that chasing and reacting to its indecisiveness is enough to give anyone whiplash. However, as the nearby corn contracts plummet $0.26 to $0.31 lower, the feeder cattle contracts are seeing ample opportunity in today's market to continue to trek higher. Large the corn complex is trading lower as better chances of ran have been noted for Iowa and Illinois over the next week. August feeders are up $3.67 at $234.32, September feeders are up $3.65 at $238.17 and October feeders are up $3.50 at $240.67.
LEAN HOGS:
After closing lower both Wednesday and Thursday, the lean hog complex now has some upward trading ability before it runs into resistance pressure again. Traders see Friday's market as a stable environment to trade the hog complex higher in as corn prices are down sharply and as today's market won't likely run up against long-term resistance thresholds. July lean hogs are up $0.97 at $92.82, August lean hogs are up $0.92 at $90.90 and October lean hogs are up $0.40 at $80.25.
The projected lean hog index for June 22 is up $0.94 at $91.41, and the actual index for June 21 is up $0.85 at $90.47. Hog prices are lower on the Daily Direct Morning Hog Report, down $7.77 with a weighted average price of $87.66, ranging from $75.00 to $95.00 on 612 head and a five-day rolling average of $95.00. Pork cutouts total 111.19 loads with 98.09 loads of pork cuts and 13.10 loads of trim. Pork cutout values: down $1.81, $94.69.
Pork net sales of 28,700 mt for 2023 were up 7% from the previous week and up 10% from the prior four-week average. The three largest buyers were Mexico (12,100 mt), Canada (5,000 mt) and South Korea (3,100 mt).
No comments:
Post a Comment