GENERAL COMMENTS:
Lean hog futures have moved lower in each of the past three trading sessions as traders are slowly but steadily backing away from short-term highs set last week. The lack of aggressive market swings in cattle trade through the last couple of days has put more emphasis on market fundamentals in all segments of the livestock complex, also creating concern that pork demand may continue to struggle through the holidays.
Moderate losses are holding in lean hog trade, although cattle futures are mixed in a moderate range. Very little sense of direction is developing in cattle futures during morning trade, but it will be interesting to see if prices fade from current levels in the last couple hours of trade like seen over the past few trading sessions.
March corn is down 2 3/4 at $4.7 and January soybean meal is down $4.20 at $399.00. The Dow Jones Industrial Average is up 70.39 at 37,628.31.
LIVE CATTLE:
Live cattle markets remain generally quiet in mixed price direction through the morning Wednesday. The pullback in price levels seen Tuesday and general lack of support in the market heading into the Christmas holiday is keeping many traders on the sidelines. Nearby December and February futures are still able to hang onto early gains, but the rest of the complex has eroded lower through Wednesday morning. The focus on lack of long-term activity over the next several days and uncertainty of the upcoming cattle on feed report Friday will likely keep prices hovering within a narrow to moderate range unless some additional significant market news develops.
Cash cattle markets are still generally quiet, although a few bids have developed through the morning across the North. Live bids of $186 to $170 and Dressed bids of $270 per cwt are available. At this point, asking prices are still very quiet and hard to pin down, but it is likely that feeders are looking for steady to higher money this early in the week, and without that will gladly hold out until Thursday or Friday. Late-day trade Tuesday in the North at $169 live and $270 dressed was light enough that an accurate trend is still unable to pin down.
December live cattle are $0.48 higher at $168.925, February live cattle are $0.18 higher at $168.95, April live cattle are $0.10 lower at $172.575.
Boxed beef prices are lower: choice down $0.25 ($288.58) and select down $1.74 ($261.42) with a movement of 71.74 loads (39.79 loads of choice, 10.54 loads of select, 4.56 loads of trim and 16.85 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures traded higher through most of Wednesday morning, but at midday prices are starting to slowly erode. This same trend has developed each day this week with early gains developing throughout the morning, only for a portion, if not all of the support given away by the end of the trading session.
The overall light activity seen across the entire cattle complex, and especially in the feeder cattle market is limiting trade activity. Although traders are anticipating Friday's Cattle on Feed report, the overall volume in the market through the rest of the year is expected to remain generally sluggish with traders focusing on the upcoming holidays.
January feeders are $0.15 lower at $221.75, March feeders are $0.18 higher at $223.375 and April feeders are $0.50 higher at $228.375.
LEAN HOGS:
Moderate pressure is holding in lean hog futures trade at midday following weaker market shifts all morning. April through August contracts are holding losses of 70 cents to $1 per cwt at midday surrounding questions of significant shifts in production through the next few months.
Current strong pork production levels in China is still viewed as a concern, as this may limit overall export demand and the ability to actively move U.S. pork supplies at a premium through much of 2024. Even with the recent price softness, prices are still well contained in the recent market ranges, with very little technical damage being done to price charts with the current market shifts.
February lean hogs are $0.53 lower at $70.025, April lean hogs are $0.75 lower at $76.85 and May lean hogs are $1.03 lower at $83.325. Hog Prices are lower on the Daily Direct Morning Hog report, down $2.20 with a weighted average of $48.09, ranging from $41.00 to $49.00 on 1,992 head with a five-day rolling average of $49.11. Pork Cutouts totaled 182.27 loads with 162.92 loads of pork cuts and 19.35 loads of trim. Pork cutout values are down $4.32 at $81.22.
No comments:
Post a Comment