Meats Futures Prices
- TFM Sunrise Update Sept 25, 2020
Grains choppy overnight, consolidating this week's weakness. Dollar stays up. COF report later today - Cattle and Hog calls = firm
- Redux: Shying From The Long Side of All Markets
September is notorious for being the most....
- TFM Sunrise Update Sept 24, 2020
Grain complex in the red overnight pressured by row crop harvest and higher dollar. Cattle on Feed, Quarterly Hogs/Pigs report spell position-squaring...
Futures Market News and Commentary
Pre-report positioning left futures down $0.45 to $1.05 on the day. Feeder cattle futures closed the last trading day of the week $1.90 to $2.07 in the red. The 9/24 Feeder Cattle Index from CME was down $0.36 to $142.23. Catch up business for Friday cash sales was light with very wide ranges. USDA reported a few sales from $102-$107 with most $105+. USDA noted the limited $106-$107 was for higher graded cattle. The week’s range was $102-$107 with the bulk at $105. USDA’s CoF report showed 11.394 million head of cattle in the 1,000+ capacity feedlots as of September 1. That was 3.75% higher yr/yr, vs. trade ideas of a 3.4% increase. August saw 1.892 million head of cattle marketed, compared to 1.953 last year and the average trade guess of 1.887. August placements were up 9.18% yr/yr, with 2.057m head. Traders were anticipating a 5.9% increase. The Commitment of Traders report had cattle speculative traders at 57,999 contracts net long. Long liquidation was noted from the managed mo... Read more
Traders responded to the Hogs and Pigs report with a triple digit gain on Friday. For October futures that resulted in a 7.89% gain for the week. The national hog herd was ~315k head above the average trade guess, and still above Sept ’19. The quarterly update from USDA confirmed the lower lightweight inventory, currently the spring contracts are a $1.15 & $5.20 premium to October and summer hogs are $9 premium. The CME Lean Hog Index was $73.70 on 9/23, up another $0.81. USDA’s National Average Afternoon Base Hog price for Friday was 14 cents stronger @ $64.74. The regional WCB base hog price was $64.75, compared to $64.73 for the ECB. USDA’s National Pork Carcass Cutout value was $0.71 weaker in the afternoon report at $91.32. CFTC reported managed money at 43,580 contracts net long in lean hogs on September 22. That was a 1,108 contract stronger net long on the week. USDA estimated the week’s FI hog slaughter at 2.627 million head through Saturday. That is 14,000 head lower yr/yr... Read more