GENERAL COMMENTS:
The livestock contracts received ample support throughout the day, which helped all three of the market's round out the day higher. New showlists appear to be lower in all major feeding states. May corn is down 1 1/4 cents per bushel and May soybean meal is up $3.90. The Dow Jones Industrial Average is up 1,160.72 points and the NASDAQ is up 779.42 points.
LIVE CATTLE:
It was a wild day for the live cattle complex as the market was robustly supported by the news that broke about all Mexican cattle imports being halted for the next 15 days, to the tariffs on China being rolled back for the next 90 days, to see the equity markets trade noticeably higher, good news was easy to come. June live cattle closed $2.15 higher at $216.82, August live cattle closed $2.02 higher at $211.60 and October live cattle closed $1.50 higher at $208.45. Monday's slaughter is estimated at 99,000 head -- 10,000 head less than a week ago and 15,000 head less than a year ago. New showlists appear to be lower in all major feeding states.
Last week, Southern live cattle traded at mostly $219 to $220, which is $1.00 to $2.00 higher than the prior week's weighted average. Northern dressed cattle traded at mostly $355, which is $6.00 higher than the previous week's weighted average. Last week's negotiated cash cattle trade totaled 83,514 head. Of that 64% (53,519 head) were committed to the market's nearby delivery option, while the remaining 36% (29,995 head) were committed to the deferred delivery option.
Boxed beef prices closed higher: choice up $2.17 ($348.14) and select up $4.06 ($335.23) with a movement of 115 loads (73.10 loads of choice, 15.83 loads of select, 5.97 loads of trim and 19.99 loads of ground beef).
TUESDAY'S CATTLE CALL: Steady. Packers were able to buy up some inventory last week so prices could hold steady.
FEEDER CATTLE:
It was rock-and-roll type of day for the feeder cattle complex as the market found more than enough support throughout the day to keep its contracts trading sharply higher. From the news that broke on Sunday that Mexican cattle imports into the U.S. would be halted because of the spread of New World screwworm, to President Trump's 90-day tariff rollback on China, there was more than enough bullish support in the market to go around. And as if that wasn't enough bullish support, the CME feeder cattle index broke $300. May feeders closed $5.12 higher at $303.10, August feeders closed $6.07 higher at $306.37 and September feeders closed $6.07 higher at $305.10. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week, and at their midpoint, feeder steers were trading $4.00 to $6.00 higher and feeder heifers were trading $2.00 to $6.00 higher. Steer and heifer calves were trading mostly steady. Feeder cattle supply over 600 pounds was 78%. The CME feeder cattle index 5/9/2025: up $4.89, $301.03.
LEAN HOGS:
Upon seeing the equity markets trade higher and hearing news that trade relations may improve with China, the lean hog complex had more than enough support back its market to trade higher through Monday's close. June lean hogs closed $0.72 higher at $98.30, July lean hogs closed $2.05 higher at $102.47 and August lean hogs closed $2.20 higher at $101.32. It was slightly disappointing to see pork cutout values close a tick lower, but hopefully, demand will improve later in the week. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.82 with a weighted average price of $95.29 on 4,451 head. Pork cutouts totaled 319.35 loads, with 281.54 loads of pork cuts and 37.81 loads of trim. Pork cutout values: down $1.32, $96.51. Monday's slaughter is estimated at 466,000 head -- 16,000 head less than a week ago and 2,000 head more than a year ago. The CME lean hog index 5/8/2025: down $0.08, $89.99.
TUESDAY'S HOG CALL: Steady. With pork cutout values lower Monday afternoon, and with most of the cuts trading lower, packers may not be overly aggressive on Tuesday in the cash market.
No comments:
Post a Comment