DTN Midday Livestock Comments 04/26 11:56
Cattle Futures Surge Higher Setting Contract Highs
New contracts highs have been set in most live cattle and feeder cattle
contracts with triple-digit rallies developing during morning trade. The
aggressive support seen through the Wednesday session is bringing another round
of buyer support to the complex with live cattle futures pushing prices near
$132 per cwt while May feeder cattle futures are holding prices above $140 per
By Rick Kment
New contract highs have been set in live cattle and feeder cattle contracts
as sharp triple-digit gains are holding Wednesday morning. This support has
draw commercial and investment buyer support back into the market. Lean hog
trade remains mixed within a narrow range with light activity limiting overall
market movement through the complex. Corn prices are mixed to lower in light
trade. May corn futures are 1 cent lower. Stock markets are higher in light
trade. The Dow Jones is 55 points higher while Nasdaq is up 7 points.
Traders in the live cattle complex are trying to keep up with the aggressive
upward movement seen in feeder cattle markets with triple-digit gains quickly
and steadily moving the market higher. This has helped traders to keep focused
on seasonal support and additional buyer activity through the complex.
Additional interest is likely to move into the complex through the end of the
week as cash markets develop and additional contract highs are set. Cash cattle
sales on the Fed Cattle Exchange Auction posted a total of 5,448 head listed
for sale (40 Holstein) 1,945 head sold.
1-9 Day Delivery: 353 head, weighted average price $131.68
1-17 Day Delivery: 158 head, weighted average price $129.89
17-30 Day Delivery: 1,394 head, weighted average price $125.42 Holstein 1-17
Day Delivery: 40 head, weighted average price $93.50. This is about $3 higher
than last weeks weighted average. Feedlot trade remains undeveloped with bids
quiet and asking prices hard to pin down in most areas at this point. Beef
cut-outs at midday are mixed, $0.24 lower (select) and up $0.42 per cwt
(choice) with moderate movement of 82 total loads reported (37 loads of choice
cuts, 21 loads of select cuts, 6 loads of trimmings, 18 loads of ground beef).
Gains in feeder cattle futures are reaching $3 per cwt in late summer
contracts with the focus on long term supply tightness a possibility in both
live cattle and feeder cattle markets. Commercial buyer interest continues to
flood into the market during the last week of April with no sign of this
activity slowing which may create some uncertainty during early May. Summer
contracts are holding a $4 to $5 per cwt premium on spring contracts, but
little additional other market shifts are seen through the complex which is
drawing wide attention to the market at this point.
Lean hog futures have pulled back from narrow gains seen during most of the
morning as traders are now focusing on the pressure seen in morning cash hog
markets and the pullback in cutout reports. This latest softness in lean hog
futures is not expected to create any significant damage to the overall
movement in the lean hog futures market as traders continue to draw buyer
support to the market with traders through the end of the week with buyers look
for long term seasonal support. Cash prices are lower at midday on the National
Direct morning cash hog report. The weighted average price fell $0.43 at $53.21
per cwt with the range from $49.00 to $54.00 on 5,459 head reported sold. Cash
prices are unreported due to confidentiality on the Iowa Minnesota Direct
morning cash hog report. The National Pork Plant Report reported 206 loads
selling with prices fell $0.51 per cwt. Lean hog index for 4/24 is at $60.16
down $0.33 with a projected two-day index of $59.93 down $0.23.
Rick Kment can be reached at email@example.com
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