Cattle futures extended gains today on spillover trading from hogs. Triple-digit gains in the cattle complex pushed live cattle to new contract highs. Feeder cattle moved to the highest level since early November, but have not been able to retain those levels.
Hogs are on a roll with limit gains early with some remaining there and some trimming back limit gains.
Sharp gains in the cattle complex put the bearishness of the steep sell-off to rest. New contract highs have been established on the move today in June and later contracts. Front-month April has not been as fortunate as it needs to remain close to cash. Optimism has returned with some of that optimism the result of spill-over from the lean hog complex.
Cash cattle business is going down to the wire, but still expected to be no better than last week and likely $1.00 lower.
Boxed beef cut-outs at midday are mixed with choice down $0.40 and a cut-out value of $227.84 with select down $0.03 and a value of $219.25. Movement is light with 62 loads reported (35 loads of choice cuts. 9 loads of select cuts, 7 loads of trimmings, and 11 loads of ground beef. Cattle slaughter projected to be 111,000 head.
Feeders are the recipients of strong live cattle futures. Futures pushed to the highest levels since November 5, 2018, but have not been able to remain there. However, triple-digit gains remain with the potential to reach back near those highs.
April futures post the greatest gain with an increase of $2.32. With live cattle posting new contract highs further support should remain in this market.
A report release yesterday confirming a large purchase of pork by China has the market in a frenzy. Rumer have finally become a fact with the anticipation of more purchases to come. This send futures limit up where they remain much of the day so far. Some contracts have come off of limit as some profit taking is being done for the weekend.
Cash prices are $1.09 higher on the National Daily Direct morning report. The weighted average price in $51.53 with a range of $46.00 to $54.00 on 7,244 head reported sold.
The National Pork Plant report showed 179 loads selling with 165 loads of cuts and 14 loads of trim/process. Carcass values gained $0.72 per cwt at $68.57. Hogs slaughter expected to total 453,000 head. The lean hog index for 3/13 is $54.13, up $1.00 with the projected two-day index at $55.40, up $1.27.