GENERAL COMMENTS:
The cattle complex is rallying in excitement over Friday's bullish Cattle on Feed (COF) report. Heading into Monday afternoon, it's important to monitor whether the spot June live cattle contract can close above the market's 100-day moving average. May corn is up 4 1/4 cents per bushel and July soybean meal is up $0.40. The Dow Jones Industrial Average is up 173.05 points.
LIVE CATTLE:
The live cattle complex boldly ran higher by midday as the market rallies, thanks to last Friday's supportive COF report. June live cattle are up $1.92 at $177.60, August live cattle are up $2.62 at $176.17 and October live cattle are up $2.87 at $179.62. There are a couple of big takeaways so far from Monday's bullish push. First, it seems the nervousness and fear surrounding the avian influenza outbreak has run its course through the market and traders are ready to refocus on the market's long-term bullish fundamentals. Secondly, it's encouraging to see the spot June contract trading above its 100-day moving average. If the complex can indeed close above that threshold, that signals strength and bullishness throughout the market.
Last week, Northern live cattle traded at $292 to $294 but mostly at $292, $1 lower than the previous week's weighted average. Southern live cattle traded at $180 to $183, but mostly at $182, steady with the previous week's weighted average. Last week's negotiated cash cattle trade totaled 67,898 head. Of that, 83% (56,224 head) were committed to the nearby delivery and the remaining 17% (11,674 head) committed to the deferred delivery option.
Boxed beef prices are higher: choice up $0.24 ($295.91) and select up $0.60 ($291.43) with a movement of 51 loads (28.87 loads of choice, 5.87 loads of select, zero loads of trim and 15.90 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is back to trading higher as the market thrives on the support gained by Friday's COF report. Even though midday corn prices are trading $0.04 to $0.05 higher, the market finds more credence in the market's new-found support and is confidently trading higher into Monday's noon hour.
May feeder cattle are up $3.82 at $245.82, August feeder cattle are up $5.37 at $258.87 and September feeders are up $5.05 at $259.47.
LEAN HOGS:
The lean hog complex isn't trading with as much gusto as cattle contracts but even so, nearby contracts are still trading mildly higher. Helping the lean hog complex right now is the higher midday pork cutout values at the week's start. Packers have been running aggressive, processing speeds in the hog sector. To keep doing so, packers need to see consistent consumer demand. June lean hogs are up $0.62 at $105.45, July lean hogs are up $1.15 at $107.62 and August lean hogs are up $0.92 at $104.97.
The projected lean hog index for April 19 is down $0.04 at $91.31 and the actual index for April 18 is down $0.11 at $9.35. Hog prices are unavailable on the Daily Direct Morning Hog Report due to confidentiality. However, we can see that 377 head have traded and the market's five-day rolling average sits at $88.87. Pork cutouts total 145.32 loads with 125.22 loads of pork cuts and 20.10 loads of trim. Pork cutout values: up $1.56, $101.65.
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