DTN Midday Livestock Comments 02/21 11:51
Cattle Head Higher Wednesday While Hogs Lack Support
Traders are cautious about overly supporting the lean hog market as pork
cutout values are lower.
DTN Livestock Analyst
The cattle contracts see modest support from traders at midweek but the lean
hog contracts aren't seeing the same level of interest as traders are concerned
about the lag in pork cutout values. No cash cattle trade has developed, and
given that packers haven't offered up any bids yet, it's likely that trade will
be delayed until Thursday or Friday. March corn is down 7 1/4 cents per bushel
and May soybean meal is down $5. The Dow Jones Industrial Average is down 80.02
The live cattle contracts started the day cautious as traders were slow to
come to the market, but as time passed, trader interest and enthusiasm
improved. All contracts are trading higher into Wednesday's noon hour. February
live cattle are up $0.35 at $184.70, April live cattle are up $0.70 at $188.02
and June live cattle are up $0.47 at $183.42. No cash cattle interest has risen
as packers are yet to offer up any bids but asking prices are noted in the
south at $184 to $185 and remain unestablished in the north. Trade isn't
expected to develop until Thursday or potentially even Friday
Boxed beef prices are mixed: Choice up $0.84 ($298.21) and select down $2.50
($285.32) with a movement of 77 loads (41.00 loads of choice, 11.02 loads of
select, 10.55 loads of trim and 13.95 loads of ground beef).
The feeder cattle complex continues to trade higher as the market finds
ample support from the live cattle market's higher trend and fully expects
Friday's Cattle on Feed report to be bullish for its market. March feeders are
up $0.05 at $251.42, April feeders are up $0.77 at $256.11 and May feeders are
up $1.02 at $259.15. It's been noted in sales again this week that cattle that
can make grass cattle this summer are seeing strong interest as buyers are
concerned that if they wait to buy their grass calves in May/June, there may
not be enough stock available.
The lean hog complex has traded back and forth throughout the day, but as
Wednesday's noon hour approaches, the market is currently trading lower. Part
of the market's cautiousness stems from that pork cutout values are lower
again. This week's export data won't be shared until Friday but hog enthusiasts
are hoping sales will be strong again this week. April lean hogs are steady at
$85.67, June lean hogs are down $0.30 at $97.87 and July lean hogs are down
$0.17 at $98.85.
The projected lean hog index is delayed from the source. Hog prices on the
Daily Direct Morning Hog Report average $72.48, ranging from $65 to $73.50 on
3,270 head and a five-day rolling average of $70.46. Pork cutouts total 147.77
loads with 105.33 loads of pork cuts and 42.45 loads of trim. Pork cutout
values: Down $1.45, $90.99.
ShayLe Stewart can be reached firstname.lastname@example.org
(c) Copyright 2024 DTN, LLC. All rights reserved.
DTN offers additional daily information available free through DTN Snapshot – sign up today.
The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of futures results.