DTN Midday Livestock Comments 04/14 11:44
Cattle Contracts Feeling Pressured
The live cattle and feeder cattle contracts are struggling as the market's
pressure seem to outweigh its current strength.
DTN Livestock Analyst
The cattle contracts are faced with the same pressure that Tuesday posed as
the corn market traders higher and the cash cattle market is waiting the week
out, hoping to muster higher prices again this week. Meanwhile, the lean hog
contracts are trading higher and are looking to keep these positive gains,
hopefully through the day's close. May corn is up 15 1/4 cents per bushel and
May soybean meal is up $2.70. The Dow Jones Industrial Average is up 207.21
points and NASDAQ is down 25.55 points.
The live cattle complex is caught trading lower as the market neglects to
find any interest from traders at this point in the day. April live cattle are
down $0.22 at $122.17, June live cattle are down $0.57 at $120.32 and August
live cattle are down $0.60 at $120.30. The online auction didn't summon any
reasonable bids from packers and the countryside still sits quietly without
bids having surfaced as of yet. Feedlots know that if they want higher prices
this week, it's going to be by patiently waiting and drawing the week's trade
out until Thursday or Friday. Asking prices in the South are marked at $125 and
in the North from $200 to $205. Packers could begin to show more interest as
the day rolls into the afternoon.
The Fed Cattle Exchange Auction listed a total of 3,966 head (Nebraska 2,067
head, Texas 1,862 head and 37 head in Kansas), of which none actually sold as
they did not meet the reserve prices that ranged from $122 to $128. Opening
prices ranged from $120.50 to $128; high bids ranged from $120.50 to $126.
Boxed beef prices are higher: choice up $2.18 ($272.29) and select up $1.36
($267.90) with a movement of 75 loads (39.10 loads of choice, 10.77 loads of
select, 16.01 loads of trim and 9.46 loads of ground beef).
As corn prices keep scaling higher the feeder cattle contracts are feeling
pretty doom and gloom as input costs are sucking profits away rather quickly
from feedlots' bottom line. April feeders are down $1.25 at $141.20, May
feeders are down $1.55 at $145.77 and August feeders are down $1.52 at $156.62.
Technically speaking, the feeder cattle contracts have plenty of room for
opportunity and upside potential, the market's ability to trade higher is only
going to surface if pressure from higher inputs lessens or if cash cattle begin
to trade higher again this week.
While the cattle contracts are floundering lower, the lean hog contracts are
determined to keep their upward surge. June lean hogs are up $0.65 at $106.87,
July lean hogs are up $0.32 at $104.60 and August lean hogs are steady at
$100.25. The cash hog market may be slightly lower, but cutouts are still
showing favorable demand. There has been some maintenance issues at pork plants
this week, which is accredited to Monday's revised slaughter. The slightly
weaker slaughter isn't expected to be great enough to backup hog supplies, but
it could slow packer aggression in the cash market until plants are back to
The projected lean hog index for April 13 is up $0.32 at $102.69, and the
actual index for April 12 is up $0.48 at $102.37. Hog prices are lower on the
National Direct Morning Hog report, down $0.22 with a weighted average of
$99.74, ranging from $97.00 to $103.00 on 6,365 head. Pork cutouts total 174.67
loads with 159.94 loads of pork cuts and 14.73 loads of trim. Pork cutout
values: up $0.76, $113.25.
ShayLe Stewart can be reached firstname.lastname@example.org
(c) Copyright 2021 DTN, LLC. All rights reserved.
DTN offers additional daily information available free through DTN Snapshot – sign up