US Agriculture: Cattle and Hogs after the Closing Bell Report
Cattle Market Report
Apr Cattle closed sharply higher on the session and managed to close above Wednesday's highs. The market traded moderately higher early in the session to a peak of 126.70 but a lack of new buying support on the move above Wednesday's highs and some continued concerns over Beef demand helped to trigger a set-back into the mid-session. Outside market forces were strong and the market managed to post new highs late in the day. Talk that slaughter has been running a little bit higher than expected over the past few days helped to support. A rise in US equity markets and a lower trade for the USD helped to support. Weekly US Beef export sales for the week ending 1 March came in at 10,700 metric tonnes, compared with the prior 4-wk average of 18,333. Cumulative sales for Y 2012 have reached 219,000 metric tonnes, + 2.6% from last year's pace. Boxed-Beef cut-out values came in at 197.73 at mid-day, -0.96 from Wednesday and down from 198.45 last week at this time.
Hog Market Report
Apr Hogs closed moderately higher on the session as outside markets stayed higher and Cattle rallied to help support. The market saw some strong support early in the session but pulled back to just slightly higher on the day into the mid-session. Supportive trends for outside market forces such as the USD and the stock market helped to provide a positive tone to the market early. In addition, talk of strong cash markets Wednesday and a firm trade for Loins which pulled up cut-out values helped to support. With the strong direct trade Wednesday in Iowa-Minnesota, some terminal locations traded higher this morning. Weak packer margins and talk of a slower slaughter for Saturday helped to pressure.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.