Tuesday, April 30, 2024

Tuesday Midday Livestock Market Summary - Traders Send the Complex Retreating

GENERAL COMMENTS:

The livestock complex has been under pressure since Tuesday's start and as the market nears Tuesday's noon hour -- the intensity of the market's technical pressure has only grown stronger. No asking prices are noted yet in the cash cattle market, but trade will likely be delayed until the second half of the week. July corn is down 4 cents per bushel and July soybean meal is down $5.60. The Dow Jones Industrial Average is down 305.32 points.

LIVE CATTLE:

It's been a tough go thus far throughout Tuesday's trade for the live cattle complex as the contracts are trading fully lower and traders don't seem interested in focusing on anything but the market's pressure. Whether the downturn is stemming from the announcement that HPAI has been detected in some dairy cattle in Colorado, or from lousy boxed beef movement -- the day's pressure is being severely felt throughout the cattle complex. June live cattle are down $2.27 at $174.87, August live cattle are down $2.47 at $173.20 and October live cattle are down $2.65 at $177.12. No bids or asking prices have surfaced yet this week and trade will likely be delayed until Thursday or Friday.

Midday boxed beef prices are mixed: choice down $1.49 ($296.04) and select up $0.70 ($290.91) with a movement of 56 loads (28.90 loads of choice, 10.66 loads of select, zero loads of trim and 16.19 loads of ground beef).

FEEDER CATTLE:

With the live cattle market trading mostly $2.00 lower into Tuesday afternoon -- the feeder cattle market waived its white flag early on and is trading mostly $3.00 lower into the noon hour. May feeders are down $3.05 at $244.97, August feeders are down $3.60 at $256.02 and September feeders are down $3.57 at $257.15. Today's descent could be stemming from the announcement that HPAI has been detected in some dairy cows in Colorado.

LEAN HOGS:

The lean hog complex attempted to trade higher, but the market quickly sank back lower and is entering Tuesday's noon hour lower in the nearby contracts, but slightly higher in the market's furthest deferred months. June lean hogs are down $0.35 at $102.12, July lean hogs are down $0.47 at $104.97 and August lean hogs are down $0.20 at $103.47. Cash interest was stronger this morning as over 2,000 head have already traded. If cash support and pork cutout values can round out the day higher then Wednesday's market may stand a better chance at trading higher.

The projected lean hog index for 4/29/2024 is down $0.10 at $90.26 and the actual index for 4/26/2024 is down $0.52 at $90.36. Hog prices on the Daily Direct Morning Hog Report average $90.72, ranging from $82.00 to $92.00 on 2,906 head and a five-day rolling average of $90.49. Pork cutouts total 148.22 loads with 135.48 loads of pork cuts and 12.74 loads of trim. Pork cutout values: down $0.28, $98.72.




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