Cattle Contracts Keep Scaling Higher
Thankfully the support in the feeder cattle market keeps pushing cattle contracts higher.
October live cattle are up $0.70 at $105.7, August feeder cattle are up $0.63 at $141.325, August lean hogs are down $1.48 at $52.725, December corn is down 2 3/4 cents per bushel and December soybean meal is down $1.50. The Dow Jones Industrial Average is up 98.28 points and NASDAQ is up 105.34 points. Thus far Wednesday has been a methodical day, trading steadily higher in cattle contracts but leaving the lean hog contracts to trade $1.00 lower through most of the complex. Cash cattle trade is starting to develop at mostly $1.00 higher throughout the Northern and Southern plains.
Live cattle contracts have traded steadily higher all throughout Wednesday’s morning hours. Aided by the strength rallying in the feeder cattle complex both on the board and throughout the nation’s sales, the market has scaled steadily higher and has been accompanied by slightly stronger cash cattle sales. August live cattle are up $0.37 at $101.27, October live cattle are up $0.80 at $105.80 and December live cattle are up $0.57 at $109.47. Cash cattle trade started the day out with Wednesday’s Fed Cattle Exchange where there was a good test of the market and after the online sale some interested was noticed throughout the countryside. There have been a few deals reported by a Regional packer in Nebraska for $160, and some light traded developed in Texas for $97.
The Fed Cattle Exchange Auction listed a total of 1,507 head, with 1,245 actually sold, 262 head listed as unsold, and zero head listed as PO (Passed Offer). Only Kansas and Texas were offering cattle today, the breakdown looks like this: Kansas 622 total head, with 360 head sold at $97.00-$97.50, which left 262 head unsold; Texas 885 total head, all of which sold at $97.00-$97.50. The delivery date/weighted averages breakdown is as listed: 1-9-day delivery: 738 head total, 550 head sold, with a weighted average price of $97.50; 1-17-day delivery 769 head total, 695 head sold, with a weighted average price of $97.14.
Boxed beef prices are mixed: choice down $1.32 ($201.64) and select up $0.62 ($188.94) with a movement of 108 loads (69.15 loads of choice, 17.30 loads of select, 4.98 loads of trim and 17.01 loads of ground beef).
The feeder cattle contracts are leading the upward trend in the cattle market as their support is duly noted — optimism and strength transpiring on the board, and plenty of buyer interest through this week’s sales. The market’s ambition will be pressured once again by the strong resistance embedded at $144. August feeder cattle are up $0.82 at $141.52, September feeders are up $1.07 at $142.37 and October feeders are up $1.07 at $143.00.
Not seeming to be able to muster the support needed to move contracts higher, the lean hog complex dips lower again heading into Wednesday’s afternoon hours. August lean hogs are down $1.25 at $52.95, October lean hogs are down $1.07 at $49.65 and December lean hogs are down $0.95 at $50.85. Midday cash prices were disappointing as the market’s been extremely aggressive earlier in the week, but with packers buying such vast volumes of hogs, the weaker trade come Wednesday makes sense.
Hog prices are lower on the National Direct Morning Hog Report, down $1.28 with a weighted average of $41.39, ranging from $37.00 to $44.00 on 4,578 head and a five-day rolling average of $39.73. Pork cutouts total 193.60 loads with 173.59 loads of pork cuts and 20.01 loads of trim. Pork cutout values: up $0.79, $70.20.