Date: April 18th, 2022
It was a mixed day for the livestock and grain futures on Thursday as we wrapped up a week due to markets being closed on Good Friday. Mostly triple digit gains for cattle and hogs week over week. Cash fed cattle trade steady to $2 higher in KS and TX at $139 live and steady to $4 higher in the North at $140 to $145 live and $224 to $231 on a dressed basis. Beef weekly export sales and shipments fairly routine for the week ending April 7th while pork sales slipped lower but shipments were bullish.
For the week, Friday April 8th through Thursday April 14th, April Live Cattle +$2.85, June +$2.60, April Feeder Cattle +$1.65, May +$2.40, August +$.80, June Lean Hogs +$3.90. Friday to Friday, Boxed Beef, Choice +$2.15 @ $272.62, Select -$1.43 @ $258.90, Pork Carcass Cutout +$7.05 @ $110.21.
Oklahoma Weekly Cattle Auction Summary
Livestock Weighted Average Report for 4/10/2022 – 4/16/2022
Current Week: 25,901 Last Report 4/4/22: 26,653 Last Year: 32,941
Compared to last week: Feeder cattle sold steady to 2.00 higher with moderate to good demand. Steer calves steady to 2.00 lower. Heifer calves under 500 lbs 5.00-8.00 lower; over 500 lbs steady to 2.00 lower. Demand light to moderate for calves as dry conditions persist, especially in the western part of the state.
Cattle slaughter from Friday estimated at 114,000 head and Saturday 22,000 head. For the week, 634,000 head, down 37,000 from the week previous and down 7,000 from last year. Beef production estimated at 527.7 million pounds with the year to date difference down slightly to +0.8% vs. last year and year to date slaughter +0.5%.
Hog slaughter from Friday estimated at 441,000 head and Saturday 8,000 head. For the week, 2,347,000 head, down 78,000 compared to the week previous and down 106,000 compared to a year ago. Pork production last week estimated at 512.7 million pounds with year to date pork production -6.0% compared to a year ago and hog slaughter -6.1%.
Boxed beef cutout values on Friday higher on Choice and lower on Select with only 77 loads sold.
Choice Cutout__272.62 +.76
Select Cutout__258.90 -.81
CME Feeder Cattle Index__155.95 +.09 from 4/13
CME Lean Hog Index__99.98 +.39
Pork Carcass Cutout __110.21 +1.31
April live cattle rebounding the last week and half from the new recent low at $136.35, just above the next nearby support at $136, and looking to test the March high and nearby resistance up at $141.47. April feeders have not been able to fair as well with a new 10-month low last week at $154.25, nearby resistance at $159.50 then the March high up at $165. June lean hogs still holding a long term higher trend with support at $112.20, resistance at $119.30 and the contract high hit on March 31st at $127.32.
Over in the grains, weekly export sales came in near expectations. Corn and soybeans traded mixed and didn’t stray too far from unchanged while wheat futures were considerably weaker but still held strong gains week over week. USDA did announce some daily sales on Friday morning with over 30 MBU of old crop and new crop soybeans to China and unknown destinations. NOPA crush also released with March domestic soybeans crushed totaling 181.76 MBU which was just under the expectations but a new record amount for the month of March, up 10.1% from February and up 2.1% from a year ago.
For the week, Friday April 8th through Thursday April 14th, May Corn +$.21 ½, July +$.23, December +$.19 ¼, May Soybeans -$.06 ¾, July -$.02 ¾, November +$.06, May KC Wheat +$.47 ¼, July +$.47 ¼, September +$.45 ¾, May Chicago Wheat +$.45, July +$.46 ¼, May MPLS Wheat +$.17 ¼, September +$.07 ¼, May Soybean Meal -$6.80, October -$4.80.
Grains higher overnight with all gaining back last Thursday’s losses and corn continuing to make new contract highs daily. U.S. equites are pointing lower this morning, US$ is higher and energies have traded both side of unchanged with crude currently $1+ higher. Corn finished the overnight 8 to 10 higher, soybeans 5 to 11 higher and wheat 17 to 24 higher.
It is early, but there is already some chatter about delayed corn planting with cold temps and many areas that should be planting still too wet, especially in the Southeast. USDA reported nationwide corn planting at only 2% last week and will update the number later this afternoon.
This week’s weather forecast calling for very wet conditions over most of the Corn Belt. The 6-10 day outlook showing below normal temps for the PNW and Northern Plains and above normal temps for the eastern half of the country with above normal moisture for the PNW and straight through the middle of the U.S.
May corn into new contract highs and above the $8 mark overnight with support around $7.60. The December contract also a new contract high overnight at $7.45 and support at the $7 level. May soybeans into a new 2-week high overnight with resistance at $17.36 then the contract high at $17.59 from February 24th. The November contract back to test resistance at $15.20 with support at $14.75. July KC Wheat rebounding nearly $2 in the past 3 weeks with support at $10.95 and the contract high the next upside target at $12.59. July Chicago wheat with nearby resistance at $11.40 and support at $10.62. May MPLS wheat breaking the range bound trading and into a new recent high at $11.73 ¾ overnight, the contract high from March 8th up $12.11 ¾, support at $11. May Soybean Meal with support at $448 and resistance around $470.
Loewen and Associates, Inc.
Pete Loewen / Matt Hines / Doug Biswell / Tyson Loewen
www.loewenassociates.com matt@loewenassociates.com
785-537-3336
