Date: April 28th, 2021
Livestock futures mixed on Tuesday. Cattle futures showing a reversal higher now on the charts as lean hogs hold the long term higher trend. Small volume cash feedlot trade at steady to lower in KS and NE so far this week at $118 to $120 live and $190 on a dressed basis. Higher beef and pork and robust domestic and export demand continue to be the supportive factors. Higher feed costs of course providing the most pressure.
Ozarks Regional Stockyards Feeder Cattle – West Plains, MO
Livestock Weighted Average Report for 4/27/2021
This Week: 2,413 Last Week: 2,685 Last Year: 2,941
Compared to last week, steer calves traded 5.00-10.00 lower while heifer calves traded 3.00-6.00 lower. Too few yearlings to adequately test the market however undertones were steady to weak. Demand was moderate on a light to moderate supply.
Joplin Regional Stockyards Feeder Cattle – Carthage, MO
Livestock Weighted Average Report for 4/26/2021
This Week: 4,825 Last Week: 4,961 Last Year: 7,093
Compared to last week, feeder steers under 600 lbs. traded steady to 3.00 lower,while weights over 600 lbs. traded steady to 3.00 higher. Feeder heifers traded steady to 5.00 lower with most of the decline on the heavier weights. Supply was moderate with good demand.
Oklahoma National Stockyards Feeder Cattle – Oklahoma City, OK
Livestock Weighted Average Report for 4/26/2021
This Week: 6,163 Last Week: 7,752 Last Year: 10,151
Compared to last week: Feeder steers steady to 3.00 lower. Feeder heifers 4.00 – 6.00 lower. Steer and heifer calves lightly tested and few sales 6.00 – 9.00 lower. Demand moderate, despite much higher corn prices. Quality average to mostly attractive.
Tulsa Livestock Auction – Tulsa, OK
Livestock Weighted Average Report for 4/26/2021
This Week: 1,981 Last Week: 2,571 Last Year: 2,089
Compared to last week: Steers 9.00 lower in a light test. Heifers 6.00 lower also in a light test. Quality plain, few attractive. Demand good. Slaughter cows 3.00 lower. Slaughter bulls 2.00 higher.
Cattle slaughter from Tuesday estimated at 121,000 head, matching last week and up 46,000 from last year. Hog slaughter from Tuesday estimated at 486,000 head, up 1,000 compared to last week and up 205,000 compared to a year ago.
Boxed beef cutout values sharply higher on Tuesday with 105 loads sold.
Choice Cutout__290.99 +5.79
Select Cutout__279.53 +5.18
CME Feeder Cattle Index__135.22 -.28
CME Lean Hog Index__107.39 +.22
Pork Carcass Cutout__110.68 +1.38
IA/MN Wtd Avg Carcass Base__115.31 +4.04
National Wtd Avg Carcass Base__113.10 +5.39
April live cattle breaking through the $118 support earlier this week, looking to hold $118 to $119 now with resistance around $120. The April contract expires on Friday. The heaviest volume in June which hit a new 3-month low on Tuesday with support next around $114 and resistance around $118 then $120. April feeders expire tomorrow holding $132 to $135. May feeders the next contract month with support holding just above $135 and resistance at $140.60 then $144.60. June lean hogs still holding the long term higher trend with support at $101 and resistance around $107 and then the contract high at $110.07.
Over in the grains it was a wild ride as all contracts hit new highs but then proceeded to washout. The wildest ride is in the nearby May corn contract which hit 40 cents higher, breaking the $7 barrier, and the only corn contract to finish in positive territory. Most if not all grain facilities have already rolled bids to July ahead of first notice day this Friday. It appears the squeeze is on already in May as longs try to catch those still short May futures. Soybeans started the day higher but also sold off and closed near the day’s lows. Wheat futures were mixed trading both sides of unchanged. Weather has been optimal in many areas so far this week with a small break expected here over the next couple days due to scattered rains. This along with a very overbought grain complex the cause for a pullback in most contracts yesterday.
Overnight all grains under pressure except the nearby May corn contract. New fundamental news light overnight. Corn finished the overnight 4 higher on May, but 12 to 16 lower July through December, soybeans 3 to 14 lower and wheat 14 to 18 lower.
Taiwan purchased a cargo of Argentine corn overnight as South Korea announced a couple snap tenders for up to 280,000 MT or 11 million bushels of corn. So far today an undetermined amount has been purchased of South African or South American origin for delivery in August and September.
Heavy rains begin today and now could stretch into next week from central Texas into the ECB. The 6-10 day outlook holding above normal temps across the country with above normal precipitation from the Dakotas to New England and below normal from the West Coast through the Southwest.
May corn hitting $7.20 ½ yesterday, the highest spot price for corn since July 2013. All May grain contracts hit first notice day this Friday and into delivery. July corn hit a new contract high at $6.84 yesterday with the first support line at $6.14 ½. May soybeans hit $16.08 ¾, also the highest spot price since July 2013. July topped at $15.74 ¾ with support at $14.80 ½. May KC wheat up to $7.34 ¾ with July up to $7.41 ¼. May Chicago wheat up to $7.73 and July to $7.69 ½. May soybean meal holding support around $395 since mid-March with nearby resistance around $435.
Loewen and Associates, Inc.
Pete Loewen / Matt Hines / Doug Biswell
www.loewenassociates.com matt@loewenassociates.com
866-341-6700
