Front-month April cannot break away from the $129 area as it seems well-priced with underlying cash. There has yet to be any significant business done as buyers and sellers continue to follow the usual pattern of going down to the wire. Bids have been lowered to $125 as buyers set their bids based on yesterday's market movement. They may need to rethink that if business is to be done this week.
Boxed beef cut-outs are mixed at midday with choice $0.68 higher and select up $0.21. Movement is rather light at 65 loads reported (28 loads of choice cuts, 15 loads of select cuts, 7 loads of trimmings, and 15 loads of ground beef).
Feed cattle futures have led the charge as short-covering and bottom-picking is running the market. Contracts are taking back the losses from the previous two days.
April futures are exhibiting good strength diverging substantially from later months. Spread trading has the market moving in both directions. A good export sales report last week with showed good sales with Mexico the largest destination.
The weighted average price is $0.49 lower at $35.97 with a range of $35.25 to $36.85 on 3,269 head reported sold.
The National Morning Pork report showed 174 loads of pork cuts and 25 loads of trim/process pork. The lean hog index for three fourths is $51.94 ,down 0.01 with a projected two-day index of $51.85, down 0.09.
Robin Schmahl can be reached at: firstname.lastname@example.org
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