Tuesday, February 13, 2024

Tuesday Closing Livestock Market Update - Weaker Tones Follow Contracts

GENERAL COMMENTS:

It was a dreary day for the livestock complex as traders kept their distance from contracts and let most of them round out the day lower. No cash cattle trade was noted and it's likely trade could be delayed until later in the week as packers aren't expected to be as aggressive in this week's market. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $2.98 with a weighted average price of $68.19 on 3,892 head. March corn is up 1/4 cent per bushel and March soybean meal is down $4.10. The Dow Jones Industrial Average is down 524.63 points.

LIVE CATTLE:

The live cattle complex closed lower as the market continued to settle in this new week and finally breathed after last week's surge. With boxed beef prices seeing a bit of pressure and packers cutting kills, the market's slightly lower tone comes with the territory. February live cattle closed $0.50 lower at $183.75, April live cattle closed $0.82 lower at $185.10 and June live cattle closed $0.97 lower at $182.55. No cash cattle trade developed throughout the day and the week's trade will likely be delayed until sometime after Wednesday. 

Tuesday's slaughter is estimated at 125,000 head -- steady with a week and a year ago.

Boxed beef prices closed lower: Choice down $1.81 ($292.27) and select down $1.72 ($285.30) with a movement of 108 loads (65.57 loads of choice, 23.50 loads of select, 5.24 loads of trim and 13.94 loads of ground beef).

WEDNESDAY'S CATTLE CALL: Steady. When cattle do end up trading this week prices will likely be steady.

FEEDER CATTLE:

The feeder cattle complex closed lower as the market seems to be taking a time-out after last week's fast and furious nature. March feeders closed $0.82 lower at $248, April feeders closed $1.42 lower at $251.75 and May feeders closed $1.40 lower at $255.45. The market likely continues to see this type of stagnant technical trade through the end of the week as cash cattle prices are expected to trade steady and traders have already accounted for the market's strong fundamental footing. At Oklahoma National Stockyards in Oklahoma City, compared to last week, feeder steers and heifers sold steady to slightly weaker. But steer and heifer calves traded $2 to $4 higher. Feeder cattle supply over 600 pounds was 57%. The CME feeder cattle index Feb. 12: Not available currently.

LEAN HOGS:

The lean hog complex didn't see much action today as traders supported a couple of summer 2024 contracts, but by and large, they elected to allow the contracts to close lower as hesitancy and caution were the biggest themes of Tuesday's market. Pork cutout values closed lower again with a $4.60 drop in the belly and a $2.31 drop in the ham pressuring the carcass price the most. April lean hogs closed $0.05 lower at $81.07, June lean hogs closed $0.17 lower at $94.70 and July lean hogs closed $0.02 higher at $96.17. Pork cutouts totaled 347.38 loads with 301.13 loads of pork cuts and 46.25 loads of trim. Pork cutout values: Down $1.38, $87.16. Tuesday's slaughter is estimated at 486,000 head -- 6,000 head less than a week ago and 12,000 head more than a year ago. The CME lean hog index Feb. 9: Up $0.10, $73.70.

WEDNEDSAY'S Hog Call: Lower. Given that pork cutout values are unstable, it's unlikely that packers are going to be anxious to buy more hogs in the cash market.





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