US Agriculture Meats (Hogs & Cattle) Markets Recap
Jun Hogs closed slightly lower on the day after choppy trade Thursday. The market traded moderately lower early in the session but managed to recover to trade slightly higher on the day into the mid-session. Heavy weights, lower loin prices and steady to 1.00 lower on the cash market helped to spark the early weakness. Ideas that the market was oversold and a firm tone for Cattle helped support the recovery bounce. Slaughter came in below expectations for the third session in a row at just 411,000 head. Traders view the high weights and sluggish slaughter pace as a sign of poor packer margins which could cause hogs to back-up in the country.
Jun Cattle saw some choppy trade early Thursday but pushed moderately higher on the session early in the day only to see a steady erosion in prices and a weak close but still slightly higher on the day. Slow exports and weakness in pork helped to pressure the market early. Boxed-Beef cut-out values were up 0.58 at mid-session to 191.07 as compared with 187.08 last week at this time. Higher Beef prices and the discount of futures to the cash market have helped to support. Traders await a more active cash trade this week but a few Cattle traded yesterday at 119.00-120.00 as compared with 122-123 last week. Offers were at 122-124 Thursday. Weekly US Beef export sales for the week ending 19 April came in at 15,500 metric tons, compared with the prior 4-wk average of 19,133. Cumulative sales for Y 2012 have reached 343,000 metric tons, + 4.9% from last year's pace.
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.