Thursday, July 27, 2023

Thursday Midday Livestock Market Summary - Hogs and Feeders Trade Higher While Live Cattle Remains Hesitant

GENERAL COMMENTS:

The livestock complex is seeing both the lean hog and feeder cattle contracts trade higher into Thursday's noon hour, but the live cattle market remains skeptical of trading higher ahead of seeing what developments in the cash market. Bids of $290 are currently being offered in Nebraska but otherwise the market remains quiet. December corn is down 5 1/4 cents per bushel and December soybean meal is down $2.70. The Dow Jones Industrial Average is up 51.09 points.

LIVE CATTLE:

The live cattle complex is trading mixed again as just a handful of the market's nearby contracts are trading higher while the market's deferred months are trading mostly lower. Traders would love to move the market higher as they're seeing slightly better interest in the boxes, but without any developments yet in the cash market, it's a risk that traders just aren't willing to take at the time being. The cash cattle market remains painfully quiet as both packers and feedlots stand committed to waiting the other party out. There is a single big currently being offered in Nebraska at $290, but no cattle have traded just yet. Asking prices in the South are noted at $180 to $182, but feedlots have yet to disclose their asking prices in the North just yet. August live cattle are down $0.32 at $178.35, October live cattle are down $0.22 at $179.72 and December live cattle are up $0.05 at $183.60.

Beef net sales of 21,400 mt for 2023 were up 2% from the previous week and 43% from the prior four-week average. The three largest buyers were South Korea (7,400 mt), Japan (5,500 mt), and China (2,800 mt).

Boxed beef prices are mixed: choice down $0.20 ($303.14) and select up $0.17 ($279.98) with a movement of 72 loads (35.44 loads of choice, 19.52 loads of select, 13.57 loads of trim and 3.35 loads of ground beef).

FEEDER CATTLE:

Even though the live cattle contracts are remaining skeptical ahead of seeing what the week's cash cattle trade amounts to, the feeder cattle complex can't help but trade higher as demand is truly unprecedented in the countryside for feeders and as corn prices continue to skate lower. August feeders are up $0.85 at $245.05, September feeders are up $1.27 at $248.72 and October feeders are up $1.30 at $250.75. So long as the corn complex doesn't shift gears and begin to trade drastically higher, the feeder cattle complex should have no issue keeping this momentum through closing.

LEAN HOGS:

The lean hog complex is acknowledging the moderately supportive export report that came Thursday morning alongside the continued downturn of corn prices. More than anything, traders want to see support and consistency in pork cutout values, and at midday prices are slightly higher and the only cuts that are showing slight dips in price are the picnic and the ham. August lean hogs are up $0.07 at $101.72, October lean hogs are up $0.12 at $83.75 and December lean hogs are steady at $76.37.

The projected lean hog index for July 26 is up $0.05 at $105.84, and the actual index for July 25 is up $0.53 at $105.79. Hog prices are lower on the Daily Direct Morning Hog Report, down $3.61 with a weighted average price of $102.54, ranging from $98.50 to $105.00 on 585 head and a five-day rolling average of $104.49. Pork cutouts total 116.94 loads with 96.95 loads of pork cuts and 19.99 loads of trim. Pork cutout values: up $1.85, $114.60.

Pork net sales of 25,500 mt for 2023 were up 33% from the previous week and 6% from the prior four-week average. The three major buyers were Mexico (17,900 mt), Japan (2,600 mt) and Canada (1,100 mt).




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