Date: April 13th, 2022
It was actually a green or buyers day across all the markets with almost all livestock futures higher and nearby contracts triple digits higher. Cash fed cattle trade early in the week again but this time at higher money with trade in KS & TX up $1 from last week at $139 live and in the North up to $142 live and $221 to $224 on a dressed basis. Equities were higher during the morning trading hours but faded as the day progressed. Energies higher with crude pushing back above $100/barrel. Grains higher as well with corn into new contract highs July forward yet not providing normal pressure to feeders. The weather on Tuesday was just as crazy as the markets with a blizzard in the Northern Plains to warm and windy and potential severe weather for the Southern Plains and WCB.
Oklahoma National Stockyards Feeder Cattle – Oklahoma City, OK
Livestock Weighted Average Report for 4/11/2022
This Week: 7,153 Last Week: 8,181 Last Year: 10,546
Compared to last week: Feeder steers 2.00 – 5.00 lower. Feeder heifers 1.00 – 3.00 lower. Steer and heifer calves 4.00 – 7.00 lower. Quality mostly average. Demand moderate to good. 7 weight index steers averaging $157-$158 and the 8 weight index steers averaging $144-$150.
Sioux Falls Regional Cattle Auction – Worthing, SD
Livestock Weighted Average Report for 4/11/2022
This Week: 3,935 Last Week: 2,006 Last Year: 3,411
Compared to last week: Feeder steers 2.00 to 5.00 higher, with instances of 9.00 higher on 850lbs – 900lbs. Feeder heifers steady to 5.00 lower, with instances of 8.00 lower on 600lbs – 650lbs, except 750lbs – 800lbs 4.00 to 6.00 higher. 7 weight index steers averaging $157-$169 and the 8 weight index steers averaging $153-$157.
Joplin Regional Stockyards Feeder Cattle – Carthage, MO
Livestock Weighted Average Report for 4/11/2022
This Week: 7,054 Last Week: 6,364 Last Year: 6,257
Compared to last week feeder steers under 575 lbs. traded 9.00-14.00 lower, with heavier weights trading steady to 3.00 lower. Feeder heifers under 600 lbs. traded 4.00-7.00 lower with heavier weights steady to 3.00 higher. Supply was moderate to heavy with good demand. 7 weight index steers averaged $159-$164 and the 8 weight index steers averaging $152-$154.
Cattle slaughter from Tuesday estimated at 125,000 head, matching last week and up 8,000 from last year. Hog slaughter from Tuesday estimated at 473,000 head, down 7,000 compared to a week ago and down 10,000 compared to a year ago.
Boxed beef cutout values on Tuesday higher on moderate to good demand with 115 loads sold.
Choice Cutout__273.47 +1.36
Select Cutout__260.71 +.42
CME Feeder Cattle Index__155.81 +.14
CME Lean Hog Index__99.10 -.53
Pork Carcass Cutout __106.80 +.16
National Wtd Avg Carcass Base__ 99.67 +1.97 on 9,272 head
April live cattle bouncing higher this week after new recent lows last week and choppy trade from $136 to $141.47 over the past month. April feeders still near the lows with last week’s new recent low down to $155.07 and spike low from March 4th at $154.27. Nearby resistance at $158 then around $162. April lean hogs expire tomorrow as the contract has consolidated right around $99. June dipped down to a new recent low last week $112.20 and now back testing resistance just shy of $120 with the contract high up at $127.32 back on March 31st.
Again, all grains and oilseeds higher yesterday, new contract highs again for corn and MPLS wheat. The wheat markets continue to be the leader higher after breaking the month long lower trend. Winter wheat conditions did improve overall this past week according to the USDA crop progress report after the close on Monday. President Biden announcing the authorization of E15 this summer. In the past, it is cut off during the summer months due to some reports that it may contribute to smog during hot weather. Some additional friendly news for the markets are rumblings that the Chinese are easing the most recent COVID lockdowns.
Overnight, grains have calmed some and traded in the red throughout the night. Corn and soybeans finished steady to 4 lower with wheat 4 to 10 lower. Crude up another $1+ after the $6+ run higher yesterday. US$ higher also and into new 2-year highs.
Chinese customs data showing soybean imports for March down 18% compared to year ago at 6.35 MMT or 233 MBU. This isn’t the only demand rationing we are seeing. USDA cut world wheat import projections last Friday by more than 4 MMT, 151 MBU, and corn import projections 3.5 MMT, 139 MBU. On the flip side, Ukraine’s Ag Minister calling for this year’s corn exports to be down to 17 MMT compared to 23.1 MMT a year ago. USDA latest estimate was 23 MMT for this year which has decreased 10.5 MMT the last 2 months. He also mentioned sunflower oil exports could total 3.4 MMT down from 5.3 MMT last year.
Rains yesterday stretching from southcentral KS to severe weather into IA and southern MN and heavy snow in MT and ND. Temps remain below normal for most and heavy rains will continue in the Southeast. The 6-10 day outlook showing below normal temps still in the Northern Plains and eastern half of the U.S. with above normal in the Southwest and below normal moisture across the middle of the county with above normal on both coasts.
May corn choppy this past month, into a new recent high yesterday at $7.79 but still not a new contract high since March 4th at $7.82 ¾. July corn has a higher trend, a new contract high yesterday at $7.73 ½ and support around $7.40. The December contract continues to hold a higher trend as well, another new contract high overnight at $7.34 with nearby support at $7. May and July soybeans down over $1.20 two weeks ago, up over $1.00 last week. July has support at the $16 level with resistance up around $17. The November contract dipped down to new 2-month low at $13.94 back on April 1st now back above $15 with nearby support around $14.40 and resistance up at $15.20. July KC Wheat a recent higher trend with support at $10.85 and the contract high up at $12.59. July Chicago wheat also trending higher the past 2 weeks but unable to break the nearby resistance from $11.30 to $11.40 with support at $10.60 and the contract high up at $12.78 ¼. May MPLS wheat breaking the range bound trading and into a new recent high yesterday at $11.61, the contract high from March 8th up $12.11 ¾. May Soybean Meal with support at $448 and resistance at $471.
Loewen and Associates, Inc.
Pete Loewen / Matt Hines / Doug Biswell / Tyson Loewen
www.loewenassociates.com matt@loewenassociates.com
785-537-3336