The results of the USDA Hogs and Pigs report should set the tone for the hog market into next week. However, short-term demand from packers is slow and the sharp set-back in pork values late yesterday may spark weakness in the cash market into next week. Pork cutout values,Insurance News. released after the close yesterday, came in at $81.56, down $1.14 from Wednesday and down from $83.67 the previous week. This is the lowest pork cut-out since November 20th.
The USDA Hogs and Pigs report for release after the close is expected to show only modest liquidation of the herd after the summer drought. Traders see total pig supply on December 1st near 99.3% of last year, with some showing a decline of more than 1% and one analyst showing a supply higher than last year. Market hogs and kept for breeding numbers are expected at the same level near 99.3%.
The cattle market has seen a nice rally into the December 20th highs but futures have spent five trading sessions consolidating under these highs. Financial markets look to remain volatile into mid-January and the uncertainty from this chaos could spill over to the cattle market in the form of fund trader long liquidation selling. The market pushed lower on the session yesterday with most of the selling coming from talk of the overbought condition,Free legal information. too much uncertainty out of Washington and the stiff premium of futures to the cash market.
Mandan, ND
Address: 2401 46th Ave. SE
Farm & Ranch Guide
February cattle normally trades at a premium of about 200-300 points to the cash market at this time of the year and closed at a premium of 725 points on December 26th and 655 points on December 27th. Ideas that cash cattle might see higher trade this week ($126.00-$127.00 last week) has helped to provide underlying support. Nebraska cattle lightly traded at $127.00 yesterday, up $1.00 from last week. There were 12 new deliveries overnight and the strong dollar and weak stock market action has left a negative tone for economic sensitive markets such as cattle. Average dressed steer weights for the week ending December 15th matched the previous record high of 880 pounds, which was up for the 4th week in a row in a time period when weights typically decline. (see chart at futures-reMorning Livestock Commentary live stock market pricessearch.com) Last year, weights were 853 pounds and the 5-year average is 851 pounds. After a snowstorm in the plains just ahead of Christmas, the 10-day outlook into January 6th for Dodge City Kansas is mostly sunny with seasonal temperatures. This could add to the bearish weight issue and beef production could come in a little higher than expected into mid-January.
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