Thursday, January 4, 2024

Thursday Midday Livestock Market Summary - Strong Gains Develop in Lean Hog Trade

GENERAL COMMENTS:

Firm pressure is seen in cattle trade Thursday morning continues to slowly but steadily back away from the active early week gains, which flooded into the cattle market Tuesday. There is very little changing at this point in both market fundamentals or technical trading, other than the fact that market volume is returning to a more normal level following the holidays and New Year. This could allow prices to find renewed support over the coming days, but prices may remain unsettled from day to day.

Hog futures have posted active gains, focusing on the oversold status of the complex and bringing buyer interest to the table. March corn is up 1/2 at $4.658 and March soybean meal is down $3.60 at $376.8. The Dow Jones Industrial Average is up 94.77 at 37,524.96.

LIVE CATTLE:

Live cattle futures have softened through Thursday morning trade with nearby contracts holding losses of 40 to 80 cents per cwt at midday. The lack of strong cash and beef market support early in the week has added to buyer concerns over the last couple of days, but the majority of price gains over the last week are still holding which is limiting any significant market liquidation at this point.

Cash cattle markets are quiet Thursday morning following very light trade in the North that developed late Wednesday. Dressed trade in the north sold for $275 per cwt, which is $2 per cwt higher than last week's weighted average. It is likely that additional trade will develop over the next couple of days, but asking prices remain firm at $175 and higher live in the South and $276 and higher dressed in the North.

February live cattle are $0.90 lower at $170.95, April live cattle are $0.60 lower at $174.15, June live cattle are $0.55 lower at $171.425. 

Boxed beef prices are mixed: choice down $1.06 ($276.97) and select up $1.37 ($260.22) with a movement of 90.02 loads (57.20 loads of choice, 13.41 loads of select, 13.31 loads of trim and 6.10 loads of ground beef).

FEEDER CATTLE:

Feeder cattle futures have seen the most aggressive pressure through Thursday morning with triple-digit losses seen in nearby contracts. Given the aggressive moves higher earlier in the week, this softness is still expected to be focusing on positioning due to the increased market activity in the complex and longer-term price direction. Market shifts in outside commodities and grain trade is also starting to impact overall feeder cattle price shifts, as traders focus on more normal volume over the next couple of weeks.

January feeders are $1.65 lower at $224.425, March feeders are $1.45 lower at $225.575 and April feeders are $1.40 lower at $231.15.

LEAN HOGS:

Lean hog futures are quickly moving higher Thursday morning as traders continue to focus on the oversold status of the lean hog complex. The most aggressive gains are seen in spot month contracts, helping to not only stabilize the market, but bring additional potential buyers back into the market from the sidelines during the next couple of weeks.

February lean hogs are $2.78 higher at $68.075, April lean hogs are $1.65 higher at $73.85 and May lean hogs are $0.80 higher at $80.675. Hog Prices are higher on the Daily Direct Morning Hog report, up $1.34 with a weighted average of $45.54, ranging from $42.00 to $46.00 on 4,544 head with a five-day rolling average of $45.15. Pork Cutouts totaled 217.75 loads with 186.50 loads of pork cuts and 31.25 loads of trim. Pork cutout values are up $1.30 at $83.37.




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