Hogs are capitalizing on the strength of Friday with further short-covering pushing futures. Stronger cash price and higher cut-outs are finally putting life into the market. Corn futures are struggling after the WASDE report trading a penny lower. The Dow is 101 points higher with the NASDAQ up 113 points.
The cattle complex is struggling after a strong day of Friday. The Cattle on Feed report is now old news with traders focusing on fundamentals for the new week. The report did not spark any need to move futures higher with most categories reported within expectations. June cattle continue to hold a $9 discount to April. As usual, there is nothing to report as far as cash business is concerned. Buyers are sellers are window dressing seeing what each has to offer. Offers so far have been distributed at $130 live and $208 dressed. Boxed beef cut at midday are higher (choice) up $1.09 per cwt and (select) up $0.53 per cwt. With very light movement of 26 loads reported (15 loads of choice cuts, 7 loads of select cuts, and 4 loads of ground beef. Cattle slaughter is expected at 117,000 head.
Futures have backed away from the levels reached on Friday. This bring futures solidly down into the range established the past few weeks. The Cattle on Feed numbers may keep a bit of pressure on the market in the near-term, but contracts have been holding support well.
Hog futures are extending gains to the highest levels since January. Strong cash is anticipated this week with cut-out values showing good strength. The April contract is $2.27 higher outpacing later contracts by nearly a dollar. The National Pork Plant report posted 121 loads selling on the morning report. There were 96 loads of pork cuts and 25 loads of trim. Pork carcass values increased $2.64 per cwt. At $67.68. Hog slaughter is projected at 476,000 head. Lean hog index for 3/7 is at $51.71 down $0.04 with a projected two-day index of $51.98, up $0.27.
Robin Schmahl can be reached at: email@example.com
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